Unibet Reports 51% Q3 Revenue Growth but Net Profit Falls Substantially

05 November 2008

Unibet Group plc has reported net gaming revenues of £29.3 million for the third quarter of 2008, a 51% increase on the same period last year, with strong growth from both its sports betting and non-sports betting products. Net profit however declined 40% to £3.9 million as a result of increases in operating and finance costs.

Net gaming revenues (NGR) from the company's sports betting product increased 44% to £10.5 million, of which live betting accounted for approximately 20% of revenues. NGR from non-sports betting products increased 46% to £19.7 million, with casino accounting for 52% of revenues and poker contributing 32%.

Sweden continues to be Unibet's strongest market with 28% of total NGR, with Southern Europe accounting for 27%. The Nordic region contributed a further 25% with the Rest of the World accounting for the remaining 21%.

Total active customers fell 17% quarter-on-quarter to 264,015, largely due to a higher number of active customers during Q2 as a result of Euro 2008. Total registered customers increased 7% to over 2.9 million compared to 2.7 million in the previous quarter.

For the nine month period Unibet reported a 56% increase in net gaming revenues to £88.5 million with net profits falling 41% to £9.7 million.

Petter Nylander, CEO of Unibet said: "Unibet's performance in the third quarter demonstrates the operational strength of our geographical and product balance. We have continued to grow our business, especially in Southern and Eastern Europe."

"The roll-out of bingo across Europe has continued and we have added Travnet Live Racing to our product portfolio. Live betting showed a continued growth and gave an important addition to the sportsbook and is now counted as an important key differentiator in our offering."

"Given the strong growth still in the online gambling market, it is at the end of October still difficult to determine what impact the actual financial situation in the world has on our business model," he added.

As at September 30th Unibet held cash and cash equivalents of $42.3 million compared to GBP 24.2 million last year.

Shares in Unibet Group plc have fallen 10.07% and are currently trading at SEK122.75 this morning in Stockholm.