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SPORTINGBET ISSUES TRADING UPDATE
Wednesday August 8,2012 : SPORTINGBET ISSUES TRADING UPDATE
Management expects to meet full year forecast, but the European market remains a challenge
The UK online gambling group Sportingbet plc issued a trading update for its fourth quarter ended July 31 Wednesday, advising that the trends experienced during the previous nine months have continued into the final quarter, and the directors expect the full-year results to be in-line with market forecasts.
"Our Australian business continues to perform strongly with NGR (pre-tax and bonus) up 93 percent year on year (up 24 percent on a like for like basis) a statement from the company noted.
"The integration of Sportingbet Australia with the recently acquired Centrebet was successfully completed during June, one month ahead of schedule.
"Additionally, the level of synergies realised is significantly ahead of our original expectations. The enlarged business is the clear market leader in Australian fixed odds online sports betting and currently represents a substantial majority of the Group's EBITDA."
Management observed that the group's European business continued to face challenging economic conditions combined with the disruptive impact of newly regulating countries and associated taxation.
"Additionally, our largest European market, Spain, was closed for the first 35 days of the quarter until the licensed market launched on 5 June. As a result, European NGR declined by 41 percent year on year (like for like down 18 percent). The restructuring of the European business following the disposal of the Turkish language website has been completed."
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