Numbers Down, But Mood is Up

Sportingbet has released its end-of-year report, for the fiscal year that ended in July. The numbers are negative, with a reported loss and well below its profits of the previous year. But the trend is positive and management optimistic.

The Internet gaming operator Sportingbet PLC is traded on the London Stock Exchange's Alternative Investment Market (AIM).it has over 2.5 million registered users at its sportsbooks, casino and bingo sites. while it serves users in 200 countries, its main market - by large - was the United states.

The pre-gambling ban US, has accounted for about 80% of the company's business. Hence the drop from ₤69.2 million profit in the year that ended July 2006, the company has lost ₤312.9 million the following year.

Going Global
To offset the loss of its greatest market, Sportingbet will invest in European gambling markets. Developing its business in new markets is viewed by the gambling group as, well, a gamble. "Some [ventures] will work and some will fail," said the statement.

Among these new geographies are Turkey and Italy, where Sportingbet is underrepresented; the group ahs recently acquired a Turkish marketing partner. It is optimistic about the direction in which the European Market is heading, namely to liberalize the industry.

In other business development moves, the group does not rule out targeted acquisitions. In what could potentially become the biggest move of the year, there are even rumors about joining forces with Austrian rival Bwin Interactive Entertainment AG. Talks between the two companies, however, ended in July and there are no new developments in that front as of now. Sportingbet's CEO, Andrew McIver, said "It's a possibility," but added that he cannot "give it any probability."

Faith in Numbers
With a turnover at £1.32 billion, though down from the previous year, Sportingbet still has a market share that is enviable compared to any gaming company. Sports betting is one field in which there was an absolute increase in business. Betting on such sites went up 14.3 percent.

Indeed , these numbers have not evaded the company. McIver said in the statement: "To lose 75 per cent of our business... but still record an operating profit for the year is, in my opinion, a highly creditable achievement."