Sportingbet announces big losses
December 18th, 2006
Online gaming firm Sportingbet has announced a first quarter loss of £241 million, largely due to a one off £252 million exceptional charge for halting its US operations.
OPERATIONAL PROFIT :
A report from the company said that its current trading was in line with market expectations and announced an increase in gross profit from usual operations of 48 per cent, to £31.7 million, in the three months to October.
The group added that gross profit in Europe had risen 55 per cent in the wake of the US legislation, while its Australian profits increased by 33 per cent, leading to Sportingbet reporting that it had £52 million on its balance sheet.
US CLOSURE COSTS :
The £252 million exceptional charge included a £133 million write down of investments, a £106 million loss on disposal of investment and a restructuring charge of over £13 million.
NO US TRAVEL :
Speaking after the announcement chief executive Andy McIver warned that Sportingbet still had a travel ban on any director going to the US, as they feared further arrests. “It’s very hard to find out what issues individual states have with you,” he commented.
Entry Filed under: Bookie News & Bonuses,Sports News & Results
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