In-play betting drove a strong performance from Sportingbet, particularly in Europe where punters wagered £1.17bn, a 29 per cent increase on the previous year. In-play now accounts for 61 per cent of European sports revenue, up from 56 per cent a year ago.
That helped push net gaming revenue across the group up 26.8 per cent to £207m, with Australian gross win rising an impressive 56 per cent. However, exceptional costs of £24.5m relating to its switch from Aim to the main market and a long-awaited settlement with the US Department of Justice meant reported profits fell. Exclude these items and adjusted EPS rose 4.2 per cent to 6.2p, even after heavy investment in IT and marketing.
The US move leaves Sportingbet well positioned to play a role in industry consolidation, although chief executive Andrew McIver was adamant that "we are not for sale", instead suggesting that Sportingbet was on the lookout for targets itself. He said the group was looking for assets that would widen its geographic reach, and add new channels to market, such as mobile betting platforms, already trialled successfully in Australia.
Numis Securities expects current year pre-tax profits of £42m and EPS of 7.3p (£35m and 6.3p in 2010).
SPORTINGBET (SBT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 82p | MARKET VALUE: | £412m | |
| TOUCH: | 81-82p | 12-MONTH HIGH: | 82p | LOW: 52p |
| DIVIDEND YIELD: | 1.8% | PE RATIO: | 102 | |
| NET ASSET VALUE: | 18p* | NET CASH: | £34.2m | |
| Year to 31 Jul | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 2.06 | 71.2 | 17.6 | 1.0 |
| 2007 | 1.10 | -32.6 | -73.2 | nil |
| 2008 | 1.35 | 1.2 | -0.5 | nil |
| 2009 | 1.58 | 22.3 | 4.6 | 1.0 |
| 2010 | 1.97 | 6.9 | 0.8 | 1.5 |
| % change | +25 | -69 | -83 | +50 |
Ex-div: 15 Dec Payment: 11 Jan *Includes intangible assets of £63.3m, or 13p a share | ||||
