Sportingbet reported financial results for the three months ended October 31. Total revenues increased 17% to £60 million, while amounts wagered totalled £694 million, up 35% from the same period last year.
Despite the strong top-line growth, earnings before interest, tax, depreciation and amortisation (EBITDA) dipped 10% to £10.2 million.
The hit: Sportingbet recorded an operating loss of £0.1 million after exceptional costs of £5.3 million, a share option charge of £0.2 million and amortisation of other intangible assets of £0.4 million. In the same period last year, the company made an operating profit of £7.5 million.
The charge of £5.3 million was for corporate transactions and restructuring costs related to the acquisition of Centrebet and the disposal of the company’s Turkish language website.
Amounts wagered on sports betting in Europe were down 4.7% from the £295 million reported last year due to a 11% decline in Greece. Results, however, from Australian operations were particularly strong. Total amounts wagered down under were up 95% from last year, and total net gaming revenue (NGR) spiked 165% year-over-year.
“Sportingbet is in robust health due to our geographically diversified business model and quality sportsbook offer,” said chief executive Andrew McIver.
“With the acquisition of Centrebet in Australia and the disposal of our Turkish Language website, we are making good progress towards our goal of deriving the majority of our revenues from regulated territories.”
Sportingbet has also made a solid start to the second quarter with trading in line with expectations, according to a statement from the company.
“At the current price the valuation is underpinned by Australia, with everything else thrown in for nothing,” said Nick Batram, equity analyst at Peel Hunt.
“Australia has performed well and more than underpins the current share price. Europe is more difficult and short-term visibility is poor, and this may temper a re-rating at the current time,” Batram added.