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Fortuna Entertainment Group Posts Earnings Results

Wednesday August 29,2012 : FEG POSTS 2012 FIRST HALF RESULTS
Poland fastest growing market in company's portfolio
Central European fixed-odds betting operator Fortuna Entertainment Group (FEG) posted its 2012 Half Year financial results this week, reporting a strong online performance in both Poland and the Czech Republic.
Key performance highlights included:
-     Total revenue increase of 14.7 percent to Euro 48 million.
-     Total gross win of Euro 55.1 million, up 15.2 percent over the same period last year.
      -     Gross Win from online betting increased to Euro 17.8 million, a gain of 21.8 percent over last year.
-     Total Amounts staked of Euro 229.1 million, 9.6 percent up from last year - largely attributed to strong growth from its Polish and Czech online sports betting operations.
-     EBITDA of Euro 10.1 million, 14.7 percent down y-o-y due to the negative impact of higher betting taxation.
Amounts staked on the Euro 2012 football competition reached almost Euro 17 million, of which:
-     Euro 4.7 million (28 percent) was taken in Poland of which 14.2 percent were placed through the internet only five months after launch.
-     Euro 8.4 million (49 percent) in the Czech Republic of which 42 percent were placed through the internet.
-     Euro 3.9 million (23 percent) in Slovakia of which 38 percent were placed through the internet.
Wilf Walsh, chairman of the management board of FEG commented:
“We maintain the double-digit growth in Gross Win and also increased turnover significantly. Good results in all markets were driven by online betting, especially during EURO 2012 where we recorded sales growth of 25 percent over Euro 2008 and delivered a very robust margin of 20 percent.  Despite the lack of an online gaming offer coupled with a punitive tax regime for legal domestic operators, we still enjoyed great success with our recently launched online business in Poland which has become the fastest growing market in Fortuna’s portfolio.”

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