Troubled online gaming outfit reports further losses following one-off charge for US exit
Thursday 30th November 2006
Online sports betting and gaming group Sportingbet plunged into a first quarter loss yesterday following a one-off exceptional charge of £252.4 million having exited its US business last month.
The group posted a pre-tax loss of £241.4m for the three months ending 31 October following the £252.4m exceptional charge, compared with a profit of £14.3m just a year ago.
However gross profit from continuing operations was up an encouraging 48 percent to £31.7m, with business in Europe up 55 percent and Australian operations increasing by 33 percent.
In October the company sold its US-facing sports betting and casino business to Jazette Enterprises for the token sum of $1 following the introduction of the Unlawful Internet Gambling Enforcement Act, and the arrest of its former non-executive chairman Peter Dicks.
Paradise Poker daily revenue has remained stable following the cessation of US activity on 13 November. Paradise and the group’s European operations are to be merged in order to ‘maximise cross-selling opportunities and avoid cost duplication.’
Sportingbet’s shares finished up 3.6 percent at 42.50p.