Sportingbet Cuts Losses In First Quarter

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Published: Tuesday, December 11, 2007 https://www.gowanbo.cc

Hobday claims good potential for organic growth

British online gambling group Sportingbet plc has announced financial results for its first quarter ended 31 October 2007, reporting a net loss of GBP 1.7 million.

Before charging exceptional items, fair value restatements and amortization, the company reported earnings per share of 0.8 pence, up from 0.3 pence in the same quarter year earlier.

Operating loss for the quarter was GBP 1.6 million, compared to an operating loss of GBP 11.2 million in the same quarter a year ago. Before charging exceptional items, fair value restatements and amortization, the company posted an operating profit of GBP 4.2 million, up 110 percent from GBP 2 million in the same quarter prior year.

Net gaming revenues for the quarter declined to GBP 30.4 million, from GBP 32.5 million in the same quarter previous year. This was attributed to a drop in poker rake when Paradise Poker players moved over to the Boss Media network when Paradise was closed. However, the situation was now improving with an average daily rake in November up 17 percent on October.

Online casino activities included a rise in bets placed of 12 percent, albeit at a lower average bet size of GBP 4.60 (2006 Q1: GBP 5.57)

Chief Operating Officer Dave Hobday told media reporters that the European sportsbetting business of the group has good potential for growth. Regarding the USA, which Sportingbet vacated late last year when the UIGEA passed, the group is apparently still in talks with the American authorities in a quest for a settlement concerning the company's US activities prior to UIGEA.

In the European sportsbetting sector, Sportingbet has seen amounts wagered rise to GBP 170 million from GBP 148 million with net gaming revenue rising to GBP15 million from GBP 13 million, with the number of bets taken rising by 16 percent.

In Australia customer acquisition rose by 31 percent to 15 164 but net gaming revenue still fell slightly to by GBP 400 000 to GBP3.5 million as high roller telephone business cooled.

Hobday revealed that second quarter business has started well.