Amid the economic slump, people are still betting, especially on sports, as Sportingbet's half-year results and share price testify.
After taking out customer winnings and tax, Sportingbet reported net revenues in the three months to 31 January of £43.6m, up 6 per cent on the same period a year ago. The driver was sports gaming revenue, which grew 19 per cent in the latest six-month trading period. Another important factor is the group's diversity of earnings, which means that no single geographic area represents more than 20 per cent of net revenues. In addition, the group has reduced exposure to problem areas such as Turkey which now accounts for 13 per cent of group revenue (26 per cent in second quarter of 2008) and poker (currently 12 per cent of group revenue). The only area to feel the effect of the economic slowdown was Australia, where net gaming revenues fell 8 per cent to £4.5m.
Chief executive Andy McIver expects his company to deliver full-year profit before tax of £29.4m, in line with market expectations. Evolution Securities is forecasting EPS of 5.2p (3.8p in 2008).
| SPORTINGBET (SBT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 40p | MARKET VALUE: | £191m | |
| TOUCH: | 39-40p | 12-MONTH HIGH: | 49p | LOW: 20p |
| DIVIDEND YIELD: | nil | PE RATIO: | 28 | |
| NET ASSET VALUE*: | 19p | NET CASH: | £27.3m** | |
| Half-year to 31 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 656 | 2.2 | 0.3 | nil |
| 2009 | 767 | 13.2 | 2.6 | nil |
| % change | +17 | +500 | +767 | - |
*Includes intangible assets £62.9m or 13p a share **Net of customer liabilities | ||||
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