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Sportingbet.com numbers looking good

Veteran online gambling group Sportingbet.com has presented positive numbers in its unaudited results for the second quarter and half year ended 31 January 2011.

Key highlights for the quarter include:

  • Like for like amounts wagered in Europe up 19%.

  • Strong growth in Australian operations with NGR up 73%, contributing 27% of Group sports NGR.

  • Emerging Markets division growing fast, with NGR up 67%.

  • Mobile phone product now accounts for 10% of active customers.

  • In-play betting growth of 27% - now contributing 67% of European sports revenue (2009/10: 60%).

  • Landmark sponsorship deal announced with Cheltenham Racecourse for its Queen Mother Champion Chase race until 2015.

  • Russian joint venture: IT build commenced.

  • Net cash of 25.5 million pounds (2009/10: 27.3 million pounds).

  • Interim dividend up 20%.

In the quarter, amounts wagered reached 555.3 million pounds (previous Q2: 502.3 million) and net revenue of 56.8 million pounds was recorded (previous Q2: 52.6 million). EBITDA for Q2 came in at 14.5 million pounds, compared to the previous Q2 when 13.6 million pounds was posted.

For the half year to 31 January 2011, amounts wagered were 1,069.2 million, compared with 965.5 pounds in the previous first half. Net revenues were 107.9 million compared to 101.2 million, and EBITDA reached 25.8 million pounds (23.3 million pounds )

Group chief executive Andrew McIver reported: "Strong growth in Australia, Emerging Markets and Turkey more than offset the recessionary weakness of Europe, particularly notable in our larger markets of Greece and Spain. Once again this demonstrates the attractiveness of a geographically diverse operation.

"EBITDA in the quarter increased from 13.6 million pounds to 14.5 million pounds, despite European sports margin being below its long term average. For both the quarter and the half, operating profit was ahead of last year and in line with management expectations.

"We continue to monitor regulatory developments closely and look forward to taking full advantage of opportunities as markets regulate. Our experience in such markets is that whilst there is a short term impact from tax on existing profitability, this recovers as regulated markets grow disproportionately. Over and above that you gain the benefit of the continuity of future revenue streams that regulation brings.

"The compelling underlying growth fundamentals of the industry, based on ever increasing broadband penetration and customer confidence in transacting over the internet and mobile, coupled with exciting opportunities as the industry consolidates and markets regulate gives us confidence, even in these recessionary times, about the continued growth prospects of our business.

"The third quarter has started well and in particular we have seen a rebound in the softer European margin experienced in the second quarter."

Source: InfoPowa News

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