Sportingbet Q1: Euro sport sees net rev soar 26%

SPORTINGBET’S EUROPEAN SPORTSBOOK is behind first quarter results showing year-on-year (YoY) group net revenue up more than a quarter, rising 26% YoY to £48.6m.

While the group’s casino product was a solid contributor to the growth, casino net revenue climbing 12% YoY to £11.1m, the European sportsbook was the major driver, achieving a 56% YoY increase in net revenue to £27.2m, from £17.4m.

European poker, by contrast, fell 5% YoY to £4.2m, as the business failed to escape tough conditions in that market that have hit other operators, including increased competition from US operators such as Full Tilt and Pokerstars.

Chief executive Andrew McIver (pictured) said:”Group performance continues to be driven by the European Sports betting business, which has seen strong growth in all its key metrics including amounts wagered, NGR and active customer numbers.

“Casino and gaming revenues have performed well, benefiting from an increased and enhanced product range. The European poker market remains difficult, with ongoing competition from companies that continue to accept US resident players.”

Sportingbet’s Australian sportsbook also saw growth, experiencing a 17% rise in wagering volume following de-regulation, in particular from the telephone and internet business’ online arm. This could be further boosted if a legal challenged by Betfair against allegedly anti-competitive gaming laws in New South Wales, the country’s most populous state, proves successful.

The group’s Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) grew by 16% YoY to £9.7m.

Sportingbet’s European business (incorporating the financial results for the Emerging Markets division) saw the amount wagered on sports increase by 38% YoY to £263.8m, from £191m; and generating a gross margin of £30.2m, up 53% from £19.8m. European casino and games revenue grew by 14.7% to £11.7m, from£10.2m, whilst poker revenue dipped 2% to £5m, from £5.1m.

In-play bets accounted for more than half of the value of bets placed during the quarter, and increased 68% YoY.

Amounts wagered in Australia increased by 17% to £184.1m, from £157m, resulting in pre-tax margin remaining flat at £8.7m. Gambling taxes in Australia amounted to £2.2m in the period, up from £1.6m in the same period last year, affected by the increase in State taxes introduced throughout the prior financial year, accompanying a relaxation in advertising restrictions following the company’s successful joint-challenge with Betfair against the rules. After accounting for betting taxes, the post tax margin fell 9% to £6.5m, from £7.1m.

As reported on EGRmagazine.com, Sportingbet plans to list on the London Stock Exchange by April.

Sportingbet is exhibiting at EGR Live, eGaming Review‘s free to attend two-day conference on Monday and Tuesday next week. Register now to attend.