Sportingbet remains confident despite drops

2Dec 2012

Sportingbet

London-listed online sportsbook and gaming operator Sportingbet has released its financial results for the three months to the end of October showing that it experienced a 35.2 percent year-on-year decline in total revenues to £38.8 million.

This period represents the first quarter of the 2013 financial year for Sportingbet with the London-based firm revealing that amounts wagered for the quarter dropped 14.3 percent year-on-year to £594.3 million while its net cash position of €18.5 million is almost 40 percent lower than at the same time in 2011.

In Europe, Sportingbet stated that its core business had performed ‘satisfactorily’ over the three months with amounts wagered up by two percent year-on-year excluding the effects of its disposal of the Turkish language website, the impact of Spanish regulation and the economic slowdown in Greece. The firm declared that it had additionally ‘addressed’ the cost base from twelve months ago to chalk up a 45 percent decrease year-on-year in operating expenses while its sportsbook margin fell by 1.4 percent in comparison with the same period in 2011 to 9.2 percent along with a 33.1 percent decline in casino and games net gaming revenues due to the ‘lower margin and also a reduction in Spain where certain types of games are prohibited following regulation’.

However, amounts wagered from Sportingbet’s emerging markets sector over the three months rose by 15 percent year-on-year while net gaming revenues improved by two percent when compared with the same period in 2011 despite a 1.3 percent fall in sportsbook margin to 11.6 percent.

“After challenging trading conditions during the first quarter, I am pleased to report that November has seen a return to normal trading levels with a particularly strong Australian sports margin,” said Andrew McIver, Chief Executive Officer for Sportingbet.

“We experienced a relatively low overall sports margin in August and September due to results being affected by the outcome of relatively few sporting events. Although the sports margin returned to more normal levels in October, compared to the prior year the business saw a drop in volume due to October 2012 being a four weekend month, October 2011 was a five weekend month, and due to the scheduling of sports events such as the Australian Derby Day which fell in November this year.

“Notwithstanding this initial period of relatively volatile trading, which is not unusual, the board remains confident that the results for the full-year ending July 2013 will meet its current expectations.”