Betting Promotion plans internal business review
Failure to deliver satisfactory long-term financial results sparks review call from sportsbetting provider's board
Sports betting provider Betting Promotion is to undertake an internal business review after the company posted a net loss of 424,000 for the three months ended 30 June.
Following the release of its second quarter results, the Swedish-based firm said the company’s trading and bookmaking operations will be subject to an analysis, with the aim of developing a new business plan in the future. The new company chairman Peter à ström will head up the review.
Today’s Q2 interim report showed net turnover after fees was down 40.5% year-on-year to 502,000. Year-on-year gross margin fell from 0.49% to 0.39%.
The results were described as “well below budget” by Betting Promotion’s CEO Jonas Ornstein who said the lack of sporting events contributed to the disappointing figures.
“The negative net income is due to lower gaming turnover, write-downs during the quarter in question and continued investment in the bookmaking product,” Ornstein added. “The lower gaming turnover is a consequence of the fact that there are no major championships in 2013.”
The business review announcement comes despite the sports betting provider saying in January that the company was “in very good shape” after pleasing 4Q14 results, its first since Ornstein replaced Johan Moazed as CEO.