Sportingbet profit dives after US settlement

 
City A.M. Reporter
Online gambling firm Sportingbet posted a 69 per cent fall in full-year pretax profit on one-off costs related to a settlement with the U.S. Department of Justice and its move to the Official List, but said it started the new year well.

The company had agreed to forfeit $33m (£21 million pounds) to settle a US investigation over alleged illegal Internet gambling.

Net gaming revenue in the first two months of the new financial year was 17 per cent above the same period last year.

"Whilst the economic outlook remains challenging, our spread of activities across the different economic cycles of Europe, Australia and South America gives us confidence for a further year of success," the company said in a statement.

For the year ended 31 July, pre-tax profit was £6.9m, compared with £22.3m last year.

Net gaming revenue grew 27 per cent to £207.5m.

The company declared a final dividend of 1 pence, taking the total dividend for the year to 1.5 pence, up 50 per cent from last year.