Sportingbet sees reduced profits

Online sports betting and gaming group, Sportingbet – strip sponsors of Wolverhampton Wanderers and Leeds United – has posted a reduced pre- tax profit of £6.9m for the year to July 31, 2010, which compares with £22.3m last year.

This year’s result includes exceptional costs of £24.5m, principally associated with the agreed settlement with the US Department of Justice and the group’s move to the Official List.

For the year as a whole, amounts wagered were up 25% year on year to £1,971m and EBITDA earnings were 17% higher at £46.5m.

Amounts wagered on sports betting in Europe (incorporating the financial results for the Emerging Markets division) grew by 29% from £906.6m last year to £1,165.1m, earning net gaming revenue (NGR) of £111.6m (2009: £82.7m) was up 35% year on year.

Casino and gaming contributed a further £44.9m, and poker £17.4m, to both amounts wagered and NGR (2009: £41.3m and £18.8m).

Amounts wagered on Australian sports betting grew by 22% to £743.9m (2009: £610.5m), earning post betting tax NGR of £33.6m (2009: £20.8m). The Group says that the new financial year has started well with net gaming revenue for the first two months up 17% on the same period last year.

The Board has proposed a final dividend of 1.0p which brings the total dividend for the year to 1.5p, 50% up on last year.

Andrew McIver, group chief executive said:”This has been a year of significant progress on a number of fronts. Sportingbet has produced another strong financial performance and its evolution has continued with the move from AIM to the Official List and subsequent entry to the FTSE 250 index.

“Once again a year of continued top line growth reflects our on-going investment in both our best in class sportsbook and our comprehensive in:play offering. The settlement with the US Department of Justice draws a line under any issue relating to our historical US activities.

“The new financial year has started well with net gaming revenue for the first two months up 17% on the same period last year. Whilst the economic outlook remains challenging, our spread of activities across the different economic cycles of Europe, Australia and South America gives us confidence for a year of further success.”