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Sportingbet Posts First Half Results

UK based Sportingbet plc has released its first half fiscal results for the period ending January 31st, 2012, showcasing strong growth in the Australian market.

Key financial indicators for the period were:

  • Amounts wagered £1.266 billion (HY1/2010: £1.069 billion), an increase of 18%

  • Net gaming revenue £109.4 million (HY1/2010: £106.8 million)

  • EBITDA £25.2 million (HY1/2010: £25.8 million)

  • 45% of revenues from regulated territories and 18% from territories in a transitionary phase where the company is paying tax ahead of licence issuance.

The Australian territory showed particularly strong growth with amounts wagered up 86% (like for like up 12%). Five months worth of results were derived from Sportingbet's acquisition in August last year of Centrebet and the surge in growth attributed to the firms move to online betting and mobile take-up.

  • Amounts wagered on Australian sports betting amounted to £756.1 million (HY1/2010-11: £406.5 million)

  • Post Betting Tax NGR of £45.3 million (HY1-2010/11: £19.4 million) up 134%. Excluding Centrebet's contribution, NGR was up 28% on a like for like basis.

  • The Australian market now accounts for 54% of the Group's sports NGR.

  • Amounts wagered on mobile up a huge 395%

Europe and Emerging Markets results were impacted by the disposal of Sportingbet's Turkish language website Superbahis.com which accounted for 29% of the region's NGR, tax payments in Spain and Greece as the firm awaits licencing approval and the ongoing recessionary environment.

  • Amounts wagered down 23% (like for like down 9%)

  • NGR down 27% (like for like down 18%)

  • New betting taxes of £7.9 Million

  • Emerging Markets division growing fast, NGR up 23%

  • In:play continues to produce industry leading margins of 10.1%

Commenting on his company's performance, Sportingbet Group Chief Executive Andrew McIver said:

"This has been a transformational six months for Sportingbet. We have acquired additional regulated businesses in Australia and Denmark and disposed of our Turkish language website. These, together with the movement towards regulation in our second and third biggest markets, of Spain and Greece , mean that by the end of our year we expect to derive over 75% of our revenues from regulated markets on an annualised basis. Following regulation in September 2008, our experience with Sportingbet Australia has demonstrated to us the long term growth potential for market leading brands in regulated markets. Our European business is being currently restructured to ensure it too is best placed to capitalise on the move towards regulation."

"The third quarter has started well and in particular, we have seen a rebound in the softer European sports margin experienced in the first half of the year."

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