Sportingbet profits hit by Spanish woes
ONLINE gambling firm Sportingbet yesterday revealed quarterly profits that were down by a third to £10.8m after it was hit by the suspension of its Spanish operation.
It has been unable to trade in Spain since 27 March because of a legal injunction relating to a dispute over back-taxes that has hit most off-shore bookmakers with customers in the Iberian nation.
Sportingbet recently paid Spain €14m (£11m) in an attempt to resolve the issue and is hoping to be awarded a new “eGaming” licence in June and resume trading.
“The group will continue to adjust the European cost base to mitigate both recessionary forces and the impact of new taxes,” Sportingbet said in a statement.
There was better news from the firm’s booming Australian operation which now accounts for two-thirds of all bets wagered and 90 per cent of profits.
Shares in the firm closed yesterday down 1.7 per cent at 28.8p but analysts remain confident that there is room for improvement.
“We think the shares could double within the next 12 months,” said Simon French of Panmure Gordon. “The group should receive a boost from the granting of a Spanish eGaming licence and Euro 2012.”
Sportingbet laid £555.9m in bets during the three months to 30 April, an increase of ten per cent on a like-for-like basis.