Sportingbet's full-year results were something of a sideshow compared with the takeover drama being initiated by a consortium comprising William Hill and GVC. Their indicative cash-and-shares offer - worth 52.5p a share - has, however, been rejected by Sportingbet. But with sports-mad Aussies having driven an impressive performance at the Australian business, the figures demonstrate just why the group has caught the eye of its potential suitors - indeed, William Hill is keen to snap up the regulated Australian operations.
The results were complicated by £71.6m of one-off charges, which related to selling the unregulated Turkish business and to the imposition of gaming taxes in Spain, Denmark and Italy. Adjust for that and Sportingbet's group operating profit fell 15 per cent year on year to £32.2m - reflecting pressure on the European sports book amid difficult economic conditions. In fact, European sports net gaming revenue (NGR) fell 12 per cent on a like-for-like basis and the number of active customers fell 1 per cent.
In sharp contrast, the Australian business bounded ahead with Sportingbet's acquisition of Centrebet now fully integrated and generating greater than expected annual savings of £15m. The impact of stable regulation since the market there was liberalised in 2008 was also apparent, with amounts wagered having grow by an underlying 11 per cent in the period to £1.49bn, while NGR climbed 31 per cent. Most of this growth came from mobile phone and online gaming, with revenue generated by mobile-placed bets having more than tripled. In fact, pre-exceptional operating profit from Australia jumped from 2011's £8.9m to £31.8m. Moreover, should the Australian authorities allow such innovations as in-play betting, that pace of growth could continue.
Forecasts are under-review but, prior to these results, broker Peel Hunt was expecting adjusted pre-tax profit for 2013 of £46.2m, giving EPS of 4.8p a share.
SPORTINGBET (SBT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 53p | MARKET VALUE: | £354m | |
| TOUCH: | 52-53p | 12-MONTH HIGH: | 54p | LOW: 25p |
| DIVIDEND YIELD: | 3.2% | PE RATIO: | na | |
| NET ASSET VALUE: | 18p* | NET CASH: | £13.4m | |
| Year to 31 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 144 | 1.20 | -0.50 | nil |
| 2009 | 164 | 22.3 | 4.60 | 1.00 |
| 2010 | 208 | 6.90 | 0.80 | 1.60 |
| 2011 | 206 | 23.8 | 3.90 | 1.70 |
| 2012 | 196 | -45.5 | -6.80 | 1.70 |
| % change | -5 | - | - | - |
Ex-div: 19 Dec Payment: 17 Jan *Includes intangible assets of £113m, or 32p share | ||||
