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Sportingbet Gambling in Net Loss

Exceptional Costs are reported to behind the GBP 39.1 million net loss of Sportingbet.

Australian internet casino – GamingZion

After rejecting the joint offer from William Hill and GVC, Sportingbet released the audited report for the fiscal year ending July 31, 2012.

The firm’s Australian internet casino operations, aimed by William Hill acquisition, reported outstanding profits. Centrebet also closed a highly successful fiscal year.

The net loss is mainly attributed to Sportingbet’s Spanish tax settlement, its acquisition of Centrebet. Integration expenses concerning the Turkish disposal also decreased the firm’s profit.

The Australian mobile gambling platform grew an astonishing 339 percent, accounting for 28 percent of the company’s revenue, and 40 percent of its registered players.

Key Fiscal reports:

  • The total amount wagered was GBP 2 349.2 million, up from GBP 2 053.9 million in 2011. The firm’s core total revenue was GBP 188.9 million, up from GBP 206.3 million in 2011.
  • Adjusted operating profits were GBP 32.2 million, down from GBP38.1 million in 2011. This sum is excluding exceptional items, such as share option charges and amortization of other intangible assets, in the value of GBP 71.6 million. In 2011 they were valued GBP 10.8 million.
  • The operating loss is GBP 39.1 million compared to a profit of GBP 24.4 million in 2011.
  • For the group, 80 percent of revenue derived from regulated and/or taxed territories.
  • Sportingbet is still Australia’s leading fixed odds internet bookmaker by amounts wagered. Online wagers were up 82 percent.
  • The integration of Centrebet was successfully completed in full compliance with the Australian gambling laws, with synergies of GBP 15 million, which is actually GBP 5.2 million higher than originally expected.
  • New mobile apps and new Centrebet site was launched in June.
  • In Europe and Emerging Market the amounts wagered were down 30 percent, however in-play continues to produce industry leading 9.7 percent profits.
  • The new in-play console was launched, mobile penetration in the key markets of UK and Spain went up to an astonishing 30 percent.

Group Chief Executive Andrew McIver commented the results saying: “The Group has had a solid start to the new financial year in line with our expectations. We are confident that the increased advertising opportunities, improved payment processing and stable business platform provided by our regulated market presence will drive profitable growth in the medium term.”

McIver added: “Whilst the economic outlook remains challenging, our robust position across a variety of attractive territories gives us confidence in the outlook for the current financial year.”

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