The Austrian sportsbook reported earnings of EUR 6.7 million for the fourth quarter of 2005, compared with EUR 4.5 million in Q4 2004, as total gross gaming revenues (betting turnover less customer winnings) increased 145% up to EUR 47.7 million. The profit before tax for the period was EUR 3.6 million, up 24.9%.
Gross gaming revenues from sports betting totalled EUR 29.6 million, up 116%. This was equivalent to a gross winnings margin of 8.2%. Casino operations, poker and games generated turnover (equivalent to gross gaming revenues) of EUR 18.1 million, EUR 11.7 million of which was attributable to casino operations (up 140%), EUR 4.0 million to poker (up 788%), and EUR 2.4 million to games (up 409%).
As a result of a three-fold increase in marketing expenses up to EUR 26.6 million, BetandWin recorded 357,000 new registrations during the fourth quarter, up 199%. The number of active sports betting customers rose 210% up to 465,000, while the number of new active sports betting customers increased to 184,000, up 234%. The key indicator of cost per new active customer declined compared to Q3 2005, from EUR 158 to EUR 145.
For the full year 2005, the Austrian bookmaker generated total gross gaming revenues of EUR 144.0 million, equivalent to a 177% increase compared to 2004. The growth was driven by a rising interest in online gaming products in continental Europe.
Gross gaming revenues from sports betting totalled EUR 94.8 million in 2005, an increase of 152% compared to the previous year. Sports betting accounted for 66% of total gross gaming revenues, while in 2004 this figure was approximately 72%. The decline was due to the company\’s successful product diversification and to the rapid growth of the group\’s poker business. The sports betting gross winnings margin for the full year was 8.7%, down from 9.9% in 2004, but in line with expectations.
Casino turnover rose 164% to EUR 33.8 million, while poker sales totalled EUR 9.8 million and games generated a turnover of EUR 5.5 million.
Earnings for the year 2005 rose 141% up to EUR 15.1 million. BetandWin reported a consolidated profit after tax of EUR 6.4 million, compared with a year-earlier loss of EUR 2.5 million.
Compared to 2004, the number of active sports betting customers increased by 458,000 to 718,000, while 542,000 were the new active sports betting customers, up 201%. Over a million new registrations were recorded in the year 2005, an increase of 179% compared to 2004. BetandWin had over two million registered customers as of 31 December 2005.
The Austrian sportsbook also reported on Ongame acquisition. The transaction should be concluded in the first four months of the current financial year as planned, provided the conditions specified in the sales contract are met.
Ongame\’s gross gaming revenues for 2005 totalled EUR 107.5 million, an increase of 145% compared to 2004. Of this amount, EUR 102.6 million, or 95.4%, was accounted for on the B2C sector, and EUR 4.9 million, or 4.6%, on the B2B sector.
Despite a significant rise in investments, Ongame increased its operating income by 78% up to EUR 26.2 million. Profit after tax was EUR 19.1 million, up 80%.
Ongame had a total of 355,300 active (real money) customers in Q4 2005 (247,260 of them the company\’s own customers, and 108,040 network customers). The definition of “active customer” is a customer who has played for “real money” at least once during the period under review.
Out of a total of 126,810 new active customers in Q4 2005, 67,816 were the company\’s own customers. 58,994 new active customers were recorded in partner networks, especially as a result of Coral Eurobet joining the network in the fourth quarter. Ongame had a total of 353,284 new active customers in FY 2005 (238,780 of them the company\’s own customers, and 114,504 network customers).
BetandWin will continue to expand its product offering in 2006. The BetandWin Racebook, a channel featuring horse and dog racing, is currently under development, and the company plans to widen its offering in 2006 by adding games of skill like backgammon and chess.
The year 2006 has started promisingly for the Austrian bookmaker. Both gross gaming revenues and active customers have developed more positively than anticipated during the first few weeks of the year.
The company is currently looking at the integration of the Ongame poker platform both technologically and organizationally, as well as examining the possibilities for expansion into selected South American and Asian markets.
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