Sportingbet year-end: EBITDA up more than a quarter
Sportingbet saw earnings before interest tax depreciation and amortisation (EBDITDA) up by more than a quarter to hit £39.7m in 2009, the company's full year results revealed today, a 28% rise on the £31m recorded last year despite the company's in-running product now contributing more than half of the group's sports bets.
SPORTINGBET SAW EARNINGS before interest tax depreciation and amortisation (EBDITDA) up by more than a quarter to hit £39.7m in 2009, the company’s full year results revealed today, a 28% rise on the £31m recorded last year.
This was accompanied by a rise in net gaming revenue in the same period of 13% to £163.6m, from £144.3 in 2008
Chief executive Andrew McIver said: “Our focus on sports betting and geographical diversification is helping to support earnings in these troubled economic times. Additionally, our commitment to offer sports betting products and customer service has helped us to recruit and retain core customers.”
As reported on EGRmagazine.com, Sportingbet was among the top 10 in this year’s Power 50 ranking of the world’s leading operators. The company’s operations are focused on Europe, Australia and emerging markets., with sports continuing to be a major part of the group’s income, contributing 64% of the group’s net gaming revenue.
Europe, the company’s main market, saw an increase in the amount wagered on sport of 21%, to £917.5m (2008: £755.5m), generating a gross margin of £93.6m (2008: £75.4m) up 24%. The number of sports bets rose 12% to 57.5m (2008: 51.5), and the average size of bets increased 9% to £15.90 (£14.66).
In November last year, Sportingbet launched live web-streaming of sports to European players to complement the group’s in-play product, which now accounts for 56% of bets placed in Europe.
During the year, the company achieved a sports gross margin of 10.2% (2008: 10%) despite the increase of in-play betting, which typically has a lower average margin due to the greater proportion of straight wagers (versus multiple bets) than pre-match betting.
The company attributed the margin to “absolute focus on accurate odds setting, risk management and investment in the underlying technologies to allow the team of highly experienced traders to maximise profits from the wagers that are taken”.
Product breakdown saw revenue for European casino and games grow 12.5% to £43.7m (2008: £38.8m), whilst poker revenues declined by 7.5% to £22m (2008: £23.8m). Europe’s casino and games offering, which accounted for 24% of the group’s revenue, grew by 12.6% during the year.
The European region generated poker rake of £22m (2008: £24m), and poker now accounts for only 12% of the group’s revenue, down from 15% in 2008.
For a market-by-market breakdown of Sportingbet’s performance, click here.