Sportingbet: strong Q1 financials

The Veteran online gambling group Sportingbet plc posted its unaudited results for the first quarter ended 31 October 2011 this week, showcasing a rise in revenues of 17 percent overall, to GBP 59.9 million.

Financial highlights of the results included:

* Amounts wagered up 35 percent to GBP 693.7 million (Q1 2010: GBP 513.9 million)

* Total revenue up 17 percent to GBP 59.9 million (Q1 2010: GBP 51.1 million)

* EBITDA GBP 10.2 million (Q1 2010:GBP 11.3 million) a decline mainly due to GBP 4.3 million in new taxes in Greece and Spain

* Net Cash GBP 30.8 million (Q1 2010: GBP 22.4 million.)

Operational highlights at group level featured:

* The completion of the Centrebet acquisition in Australia at the end of August

* The successful disposal last month of the legally troublesome Turkish online operations

* 40 percent of NGR now flowing from regulated foreign territories, and a further 18 percent from territories where the group is paying tax ahead of expected regulation

Management reported that in Australia:

* Total amounts wagered are up 95 percent

* Total NGR is up 165 percent (58 percent on a like-for-like basis)

* Centrebet has contributed GBP 2.4 million to profit before tax for the quarter

* Integration is progressing well and operational synergies are at least in line with previously stated targets

The group’s European results incorporate those from its Emerging Markets Division and include:

* Amounts wagered down 4.8 percent – Spain up 1 percent, Greece down 11 percent in a financially troubled market

* Before new betting taxes, NGR down 3.4 percent

* Spanish and Greek betting taxes of GBP 4.3 million in the quarter

* In:play betting operations doing well and at an industry leading margin of 10.1 percent (2010: 9.7 percent)

* Mobile penetration continued with a 108 percent increase in actives year on year

Andrew McIver, group chief executive, said: “With total revenue in the first quarter up 17 percent to GBP 59.9 million, Sportingbet is in robust health due to our geographically diversified business model and quality sportsbook offer.

“With the acquisition of Centrebet in Australia and the disposal of our Turkish language website, we are making good progress towards our goal of deriving the majority of our revenues from regulated territories. The early signs from our enlarged Australian business are very encouraging and we look forward to making further progress there during the coming year.

“While trading in the Eurozone territories remains subdued, we welcome regulation in this key market and the greater certainty it brings to our revenues.

” The Group has made a solid start to its second quarter with trading in line with our expectations.”