Unibet heralds regulated strategy as profits rise 27%

Unibet CEO Henrik Tjärnström said the group’s growth in France and the UK helped achieve record revenues and a 21% rise in EBITDA to £63.4m for the year ending December 2013.

Revenues rose by 19% to £234.7m, which the operator said was largely attributable to continued growth from the company’s operations in Western Europe and a strong performance in mobile.

Mobile represented 27% of total gross gaming revenue for the year with mobile apps available for both sports betting and casino with a poker product said to be in development.

Western European sports betting revenues rose by 25% during the year and 35% in Q4 alone to outstrip revenues from the Nordics for the first time, with Tjärnström pointing to growth in both France and the UK.

However, revenues slumped in the operator’s markets outside of Europe as “other” regions recorded a 31% drop in sports betting, with Australia said to have been a particularly competitive environment.

The operator’s other products including casino and poker recorded a 21% increase over the course of 2013 primarily driven by 25% growth in casino and games with Unibet’s poker division declining by 18% over the year to represent just 4% of total revenues.

But Unibet is investing in the poker vertical with a relaunch planned for Q1 following the company’s decision to end its association with Microgaming’s MPN poker network and produce its own bespoke poker product.

Tjärnström said a focus on efficiency had helped drive up profits despite a renewed focus on regulated markets leading to a 50% increase in betting duties during the period.

Markets Unibet terms as “re-regulated” now contribute 29% of total revenues, with the remainder coming from the Nordics and dot com Europe.

“Unibet’s focus on re-regulated markets demonstrates that it is possible to drive efficiency and increased profitability while reducing overall corporate risk,” Tjärnström said.