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The Australian business media are reporting that online gambling group Centrebet is expecting its profits to be at the upper end of previous guidance reports, thanks to growth in the Australian Internet betting market, which has recently seen advertising restrictions removed after court actions.
The online betting group has also predicted strong profit growth in 2009/10 as it looks to increasing market share in Australia.
Centrebet spokesmen said the group's net profit after tax for the year ended June 30, 2009 would be at the upper end of its guidance of $10 million to $11 million on an adjusted basis, and $7.5 million to $8.5 million on an actual basis.
Based upon unaudited accounts, total revenue for the 2009 financial year rose 6 percent to $66.2 million, with Australian online revenue - representing 50 percent of total revenue - up 23 percent to $32.9 million.
European revenue (excluding poker) - representing 39 percent of total revenue - was flat at $26.1 million. European poker revenue - which represented six percent of total revenue - was down by 17 percent, at $3.8 million.
Centrebet managing director Con Kafataris said the company had responded well to recent deregulation in the betting industry.
"While deregulation of the industry has presented some short-term cost challenges, it has created an attractive outlook for Centrebet to continue to grow market share," he said in a statement.
"We expect the overall industry to show strong growth over the medium term, and Centrebet is well positioned to maximise our share of that growth through customer-focused product offerings, targeted marketing investment and disciplined risk and cost management."
Centrebet said its 2009/10 profit would be boosted by the full year effect of a cost rationalisation program that was now complete.
The company would also benefit from the launch in May of fixed odds management contracts with the West Australian, ACT and Tasmanian TABs.
Under the contracts, Centrebet will manage upwards of $200 million a year in fixed odds betting turnover on behalf of the TABs.
Centrebet said it would increase its spending on marketing in Australia and core European markets and reduce spending in non-core European markets.
Total spending on marketing in 2010 was expected to be less than in 2009.
In 2007/08, Centrebet increased its bottom-line net profit by 16.8 percent to $13.01 million.
The trading report pushed up share prices by 3.5 cents.
Cryptologic 14 top games to be provided to Loto-Quebec -
02/08/2012 : The companies have signed a multi-year agreement that will see Cryptologic providing a portfolio of quality games to the Societe du jeu virtuel du Quebec, the online gaming division of the provincial state lottery corporation Loto-Quebec, known as Espacejeux.
Utah : Online Gambling : HB108 -
02/08/2012 : An intrastate attempt by Utah politician Stephen Sandstrom to introduce state legislation banning any legalisation of internet gambling has failed at the start gate.
MORE U.S. DISCUSSION ON INTERNET GAMBLING DUE THIS WEEK -
02/08/2012 : Interest in online gambling in the United States is set to continue on Thursday this week when the US Senate Committee on Indian Affairs meets to hear the views of a wide cross section of interested parties on the possible impact of legalised internet gambling on tribal gaming.
Judge wont dismiss DoJ Black Friday charges -
02/08/2012 : Former Utah banker John Campos and e-processor Chad Elie, who face charges relating to the payment processing of online poker transactions, suffered a setback Tuesday when a Manhattan judge refused to allow their motion for dismissal of Black Friday indictments against them.
ANOTHER MAJOR INTERNET GAMBLING BUST IN MALAYSIA -
02/08/2012 : Police units in Malaysia raided a series of premises in a week long anti-online gambling operation, seizing 225 computers and detaining 47 men, according to reports from the Bernama news agency. All of the detained men were later released on bail.
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