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AUSSIE SPORTSBOOK TAKES $9.86 MILL LOSS


9/10/09 - The Melbourne, Australia-based online sportsbetting firm International All Sports (IAS) Limited is another online operation suffering a bad year, reporting a loss of $9.86 million in its latest annual results. The current losses compound a $2.2 million deficit last year.
 
IAS wagering turnover for the previous twelve months fell 10.4 percent year-on-year to $998.79 million from $1.11 billion.

BofogLife SportsBook

Operating revenues rose 16.6 percent year-on-year to $44.33 million from $38.01 million while normalised EBITDA rose 224.8 percent year-on-year to $2.703 million from $831,073.
 
“Although turnover remained constant, IASBet.com was able to achieve an increase in revenue of $2.93 million,” read a statement from IAS. “This was a direct result of the change in customer base to retail recreational customers and the move away from a dependence on high staking professionals and credit customers for turnover.
 
“Unfortunately IASBet.com’s increase in revenue was negated by the introduction of various race field fees and associated taxes. These fees and taxes contributed $7.15 million to IASBet.com’s overall expenses.
 
“The CanBet business unit reported an EBITDA loss of $5.69 million for the period of July 1, 2008 through to the sale date of May 12, 2009.
 
“The Proprietary Trade business unit returned earnings before interest, tax, depreciation and amortisation of $831 000. This was an exceptional result driven by the company’s unique intellectual property applications.
 
“AusTote returned a small loss for the 2009 financial year. The redevelopment of the AusTote system was put on hold in the 2009 financial year due to the IAS sale process. AusTote’s product offering was also reduced with the introduction of race field fees. For these reasons, the promotion of AusTote also reduced, which had a negative impact on customer growth.
 
“Read Rating generated an EBITDA loss of $159 476 for the financial year. During the second half of 2009, the Read Rating product was redeveloped using new technology and a new competitive pricing model. A marketing campaign to attract new Read Rating customers has followed and the Read Rating business unit’s performance is forecast to improve in the 2010 financial year.”

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