Sportbet Plc Reports Mostly Positive First Quarter Growth Figures

A net loss of GBP 1.7 million was reported by Sportingbet plc, the British online gambling group in its financial report for the first quarter ending October 31, 2007.

The company announced earnings per share of 0.8 pence prior to charging amortization, exceptional items, as well as fair value restatements. This may be compared with a 0.3 pence per share earnings rate reported for the same quarter last year.

While the company’s reported operating loss for the same quarter in the previous year was GBP 11.2 million, the operating loss for the first quarter of this year was set at GBP 1.6 million. The company’s posted operating profit was up a total of 110% over that of the previous year, prior to charging amortization, exceptional items, and fair value restatements at an operating profit of GBP 4.2 million.

The reported net gaming revenues for the same quarter of their previous year were higher at GBP 32.5 million vs. a slight decline to a currently reported first quarter’s gaming revenues of GBP 30.4 million. The explanation for this loss is that there was a drop in the number of poker players when Paradise Poker players changed over to the Boss Media network. This occurred when Paradise Poker closed down. The situation currently however, is reported to be improving with the average daily rake for November reported as being increased by 17 percent over that for October.

With regard to online casino activities, there was a reported increase in bets placed of 12 percent. At the same time however, the average bet size was lower having dropped to GBP 4.60 as compared with an average bet size of GBP 5.57 for the same quarter of the previous year.
It was reported by Sportingbet’s Dave Hobday who is their Chief Operating Officer, to media reporters, that the there is a real potential for growth within the group’s European sportsbetting business. Late in 2006, Sportsbet left the U.S. market in the face of pressure from the anti-gambling legislation that was put into force at the time, still it seems that the group is still in talks with the American authorities in an ongoing effort to reach a settlement with regard to the company's US activities that existed prior to the legislation going into effect.

With regard to sportsbetting in Europe, the company has seen an increase in amounts wagered to GBP 170 million from GBP 148 million. At the same time, Internet gaming revenue has risen from GBP 13 million to GBP15 million. There has also been an increase of 16% in the number of bets received.

The situation in Australia has also been positive for the company with a rise in customers of 31 percent reaching 15,164. The revenue from net gaming still fell slightly however, to GBP3.5 million, a drop of GBP 400,000. This reflects a drop in telephone business for high rollers.

According to CEO Hobday, preliminary business results for the second quarter if this year are encouraging having started well.

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