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Sportingbet Reports Major Loss Following UIGEA
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17-Oct-2007, 14:13
Online gambling company Sportingbet, forced to quit and exit the U.S. market after lawmakers effectively made its business illegal, reported an annual loss on Wednesday but said other operations were doing well and it expected to grow in Europe.
Sportingbet reported a loss of £312.9 million ($637.5 million) for the year ending July 31. In the year-earlier period, it posted a profit of £69.2 million. Revenue fell 36% to £1.32 billion from £2.06 billion. However, the company, which lost over 75% of its business when U.S. legislators outlawed credit card-based online gambling in October 2006, said it was pleased with results from its continuing operations. Turnover from its remaining operations was up 23.3% at £1.1 billion compared with £890 million for the same period last year.
"Given the enormity of the change and restructuring that has taken place at Sportingbet, I am pleased to report a strong increase in gross win in the continuing business and especially pleased with the growth in our core European sports betting business of 48 percent," Chief Executive Andrew McIver said in a statement. Sportingbet shares fell 0.3% to 48.25 pence on the London Stock Exchange.
Sportingbet, like many of its rivals, pulled out of the U.S. and sold its operations on the cheap, after the U.S. outlawed the industry. Sportingbet said it expected further growth in Europe as governments there continue to liberalize online gambling legislation. In Europe, sports turnover rose 7% in August from the same period last year and saw a 23% increase in September, the company said.