Sportingbet, the online sports betting operator, said Thursday that third-quarter operating profit is expected to double over the year-ago period. It was revealed, however, that the company's downsizing initiative, ongoing since its October 2006 U.S. withdrawal, has claimed the chief operating officer's post -- with it, C.O.O. David A. Hobday.
"As part of a senior management review connected to this [downsizing] exercise," the company said in a trading update, "it has been decided that there is no longer a requirement for a Chief Operating Officer within the senior executive structure, and that the role will therefore become redundant."
Mr. Hobday, appointed C.O.O. in November 2005, has resigned from the board with immediate effect and will not be replaced. His duties are to be absorbed by the remaining senior executives.
The company said Mr. Hobday is to depart "shortly on a date to be agreed."
"The Board and I would like to take this opportunity to thank Dave for his hard work and dedication that have helped us get to where we are today and wish him well for the future," said Andrew McIver, the company's chief executive.
Meanwhile, operating profit for the three months ending April 30 has been projected to total no less than £7 million, or $13.6 million, against £3 million, or $5.86 million, the previous year.
"Quarter three was another strong performance for the Group and once again shows the tremendous headway the business has made since our complete withdrawal from the US in October 2006 and the subsequent year of intensive restructuring and refocus," said Mr. McIver.
Third-quarter results are due to be released on June 4.
The company, which last year cut 450 jobs, said that a number of redundancies may yet occur at its London headquarters.
Mr. McIver said that the London round of cuts would be the last.
On the London Stock Exchange, Sportingbet was up 2.25p, or 5.06 percent, to 46.75.
Chris Krafcik is the editor of IGamingNews. He lives in St. Louis, Mo.