Sportingbet has reported financial results for the first quarter to the end of October, and appears to have bounced back somewhat after a nasty year of loss for the company.
The London-listed operator revealed a narrower loss of £1.7 million for the period, compared to a £240.9 million loss in the same period last year, during which the U.S. Unlawful Internet Gambling Enforcement Act was passed and enacted. Sportingbet sold its U.S.-facing operations in October 2006, just hours before the enactment of the UIGEA.
Other highlights include a 110 percent increase in group operating profit, up £4.2m (2006: £2.0 million). The company also said gaming revenue in Europe continues to grow and was up 27 percent in Q1.
On the flip side, net gaming revenue in the quarter slipped slightly to £30.4 million from £32.5 million in the same period a year earlier.
In October of this year, just one year after the enactment of the UIGEA, Sportingbet released its full-year results reporting a loss of £312.9 million, compared with a £69.2 million profit in the same period last year.
It was also faced with major corporate restructuring, including the elimination of 450 jobs and the relocation of its licensed operations to the Channel Islands.
But Chief Executive Andrew McIver said today in a prepared statement that he looks forward to the company's future, which includes increased emphasis on CRM.
"I am delighted with the group's strong performance in the first quarter, which has given us a very solid start to the financial year," McIver said. "With much of the restructuring now behind us, our focus can now be on better recruitment and retention of customers, on being a first class retailer of gaming services and on offering a true internet based experience. The second quarter has started well, with good margins and volumes across the group. With the platform for growth in place, the board looks to the future with confidence."
On the LSE, shares in Sportingbet closed down 1.75p at 53.75.
Click here to view first-quarter results from Sportingbet.