Unibet doubles net profit in quarterly report

Unibet Group plc has delivered its third quarter and 9M/2014 unaudited interim results, reporting new all-time highs in activity and margin growth.

Key performance highlights for the third quarter ending September 30, 2014 include:

– Gross winnings revenue of GBP 80.4 million (Q3/2013: GBP 64.0 million).
– Profit amounted to GBP 18.1 million (Q3/2013: GBP 9.2 million)
– Profit after tax amounted to GBP 16.5 million (Q3/2013: GBP 8.2 million)
– EBITDA was GBP 21.7 million (Q3/2013: GBP 14.1 million) 96.8 (43.2) million.
– Earnings per share were GBP 0.585 (Q3/2013: GBP 0.292)
– Operating cash flow before movements in working capital amounted to GBP 21.8 million (Q3/2013: GBP 14.2 million)
– Number of active customers at the end of the quarter was 573,074 (Q3/2013: 453,753).

– Gross winnings revenue for sports betting amounted to GBP 38.1 million (Q3/2013: GBP 24 million)
– Live betting accounted for 68.6 percent (Q3/2013: 67.2 percent) of turnover on sports betting and 45 percent (Q3/2013: 47.2 percent) of gross winnings revenue on sports betting.
– Gross winnings revenue for other products amounted to GBP 42.3 million (Q3/2013: GBP 40.0 million)

Key financial highlights for the nine month period ending September 30, 2014 include:

– Profit from operations of GBP 83.6 million (9M/2013: GBP 29.0 million)
– Profit before tax of GBP 83.6 million (9M/2013: GBP 27.9 million)
– Profit after tax amounted to GBP 79.9 million (9M/2013: GBP 25.4 million)
– EBITDA was GBP 96.8 million (9M/2013: GBP 43.2 million)
– Earnings per share were GBP 2.838 (9M/2013: 0.908)
– Operating cash flow before movements in working capital amounted to GBP 59.6 million (9M/2013: GBP 43.4 million)

Henrik Tjärnström, chief executive officer of Unibet commenting on the results said:

“Unibet delivered 26 per cent year on year growth in gross winnings revenue in the third quarter (40 per cent excluding the impact of exchange rate changes and the spin-off of Kambi). The growth was wholly organic and demonstrates continued increases in market share.

“The sports betting margin for the quarter was influenced by the final stages of the World Cup and Unibet’s continued strong growth in France. Excluding those factors the sports betting margin before free bets was 8.4 per cent. A high sports betting margin has indirect effects in reducing sports turnover and activity in other products.

“Despite absorbing a 45 per cent increase in betting duties, Unibet delivered a 54 per cent growth in EBITDA compared with last year which shows the scalability of our business model. Unibet’s focus on re-regulated markets demonstrates that it is possible, with sustainable market conditions, to drive efficiency and increased profitability while reducing overall corporate risk.

“The mobile channel accounted for 38 per cent of the total gross winnings revenue and 55 per cent of gross winnings revenue in the sportsbook.”