Snai surpasses earnings forecasts in Q1 results
Group earnings up from 0.2m to 7.4m year-on-year as operator reveals its plans to continue Q1 growth
A drop in payout percentages in the sports betting vertical has helped Snai surpass its revenue forecasts for the first quarter of 2013.
Revenues for the quarter rose to 143.6m, representing a 1.8% year-on-year increase thanks to the payout decrease, which fell to 73.7% from 80.2% in Q1 last year. This contributed to an increase in EBITA, which grew 31.7% to 35.8m, while net earnings for the period rose impressively, up from 0.2m in 2012 to 7.4m. As a result Snai’s total debt, which stood at 363.6m at the close of its previous financial year, has fallen to 356.6m.
Despite amounts wagered on sports falling 2% to 232.7m for the three-month period, total amounts wagered online grew 30.6% year-on-year to 40.3m, representing 17.3% of the total figure. Net revenues for the vertical also grew over the quarter, up 40% to 51.8m, compared to 37m for the same period in 2012.
After a difficult year for horse racing in Italy, Snai “ the market leader in the vertical “ posted signs of recovery, with amounts wagered up 3.7% year-on-year. The operator admitted that the results “have been attained also thanks to the fact that the business was fully operational” after a 40-day strike hit revenues in 2012.
The introduction of online slots, which has helped overall Italian casino spend grow 80%, has also had a positive impact for the business, with revenues from the its casino operations up 12.5% to 7.2m.
Snai has also revealed its goals for 2013 and beyond, with the business focusing on three key areas of growth. It will look to develop its fixed odds horse racing and sports betting business, both as an operator and a service provider, and relaunch its VLT operations. Previously Snai operated a VLT network with Barcrest before operations were suspended in April last year, then shut down in September due to unusual betting patterns.
The company will also launch a virtual sports offering in H2 2013 as part of a push to realise the “development potential” of its online business, “drawing upon possible synergies with physical gaming operations”.