Optimistic outlook despite challenging economic conditions
Sportingbet Plc, the subject of acquisition interest from William Hill and GVC, has reported its full year audited results for its fiscal year ending July 31, 2012.
Despite delivering a net loss attributed to its Spanish tax settlement, Centrebet acquisition and integration expenses along with costs associated with its Turkish disposal, the Company reported strong results from its Australian operations with performance from Centrebet described as outperforming expectations.
Its Aussie mobile platform is proving popular, up 339 percent and now accounts for 28 percent of Sportingbet's revenue and 40 percent of its registered players.
Key Fiscal Highlights include:
–     Amounts wagered of GBP 2 349.2 Million (2011: GBP 2 053.9 Million)
–     Core total revenue of GBP 188.9 Million (2011: GBP 206.3 Million)
–     EBITDA* GBP 56.8 Million (2011: GBP 51.4 Million)
–     Adjusted operating profit* of GBP 32.2 Million (2011: GBP38.1 Million)
–     Operating loss of GBP 39.1 Million (2011: Profit of GBP 24.4 Million)
Key operational highlights include:
–     Amounts wagered up 14 percent
–     80 percent of revenue during the year derived from regulated and/or taxed territories
–     Centrebet acquisition completed August 31, 2011
–     Disposal of Turkish language website completed on November 27, 2011
–     Australia's leading fixed odds internet and phone bookmaker by amounts wagered
–     Amounts wagered online up 82 percent (like for like up 11 percent)
–     Integration of Centrebet successfully completed with realised synergies of GBP 15 million, pa GBP 5.2 million higher than originally planned
–     New mobile apps for both brands and new Centrebet website launched in June
–     Amounts wagered on mobile up 339 percent now accounting for 28 percent of revenue and 40 percent of players
Europe and Emerging Markets
–           Amounts wagered down 30 percent (like for like down 9 percent)
–           In-play continues to produce industry leading margins of 9.7 percent
–           New in-play Console launched offering enhanced user experience
–           Mobile penetration in UK and Spain now up to 30 percent
–           Spanish, Danish, Maltese, Italian licences obtained
–           Betting taxes rose by a net GBP 9.4 million
–           European cost base reduced with GBP 15 million annualised costs removed
 *          Adjusted to exclude exceptional items of GBP 71.6 million (2011: GBP 10.8 million), share option charge and amortisation of other intangible assets
Andrew McIver, Group Chief Executive, commented on the results:
"The Group has had a solid start to the new financial year in line with our expectations. We are confident that the increased advertising opportunities, improved payment processing and stable business platform provided by our regulated market presence will drive profitable growth in the medium term.
“Whilst the economic outlook remains challenging, our robust position across a variety of attractive territories gives us confidence in the outlook for the current financial year."