Sportingbet Profits Falls To £300k In Q3 2012

UK online gambling company Sportingbet has just released its financial results for the three months to 30th April, revealing a sharp fall in total revenue to £43.4m compared to £54.7m for the same period last year.
In addition, for Q3 Sportingbet profits had plummeted from £12.1m a year earlier to just £300,000, while overall the company has now made a £6.9 million loss over the nine month period compared to a £31.7 million profit for the same period in 2011.
Accounting for much of the weak figures was Sportingbet’s European offerings, which suffered from the sale of its Turkish language website, new betting taxes and having to suspend its operation in the Spanish market on 27th March. Sportingbet has also recently handed over €14m (£11m) in back-taxes in the hope of obtaining a gambling licence in the newly regulated Spanish online gambling market. As a company statement explained:
“Spain is a significant part of the group’s European operations and the closure of the website has significantly affected the results. We expect Spanish licences to be issued in early June 2012 which will allow the group to request the court lift the injunction. There is no certainty around the timing of any court consideration of the matter as it is subject to Spanish legal process.”
On the other hand, Sportingbet’ Australian market results provided better news, and accounted for 90% of the company’s overall profits. In Q3, total Australian wagers soared 78% to £369 million and remains Sportingbet’s’ “jewel in the crown.”
Despite the company share price falling 1.7% to 28.8p after the results were released, analyst remain optimistic about the future, with Simon French of Panmure Gordon stating:
“We think the shares could double within the next 12 months. The group should receive a boost from the granting of a Spanish eGaming licence and Euro 2012.