Rise in bets boosts Sportingbet profit
Wednesday, 04 Jun 2008 13:17
Sportingbet reports profit increase as more customers place sports wagers
Online betting firm Sportingbet has benefited from a 25 per cent rise in wagers made in the third quarter.
The group, which suffered a set back when a law against online gambling forced its exit from the US market in 2006, said customers placed bets worth £364.6 million over the quarter.
Sportingbet also confirmed two of its London-based employees of Turkish nationality have been detained by authorities in Turkey, and remain in custody.
The two were on holiday in the country, the company said. Turkey is a significant contributor of revenue for the group, but recent laws on gambling have been tightened up.
The company said it has no physical presence in the country, but continues to accept bets from Turkish citizens.
Group operating profit rose 143.3 per cent over the period to £7.3 million on the rise and the company said it is "very confident" of meeting full-year expectations.
Group chief executive Andrew McIver said: "Following last year's extensive restructuring we are very pleased with the solid performance of the business throughout this year."
Australia was an area of significant growth, the company said, and Australian customers increased by 34.4 per cent from 11,852 to 15,933 over the period.
The group said it had learned its lesson following the loss of its business in the US – which represented 65 per cent of net gaming revenue at the time – and has now achieved a wide geographic spread.
The London markets responded well to the results, and shares in Sportingbet rose 4.76 per cent in morning trading to 38.50p.