The Australian parent company of BetWWTS and CyberSportsbook announced the full-year results, which show a return to profitability with a profit after tax of $4.3m, against a loss of $8m in 2004, from gross revenues up 42% to $29.4m.
Chief Executive Colin Walker said performance reflected the strategic repositioning of Betcorp under new management as a multi-product, online gaming operator offering sportsbetting, casino, poker and skill games to a broad base of recreational customers.
“The business has been strengthened and the building blocks are now in place to deliever further substantial growth in 2006,” said Walker.
Betcorp\’s sportsbook business focused on gross margin control in preference to betting turnover, which accounted for 64% of total turnover, while casino and poker contributed respectively 23% and 13%.
An unusual number off winnning favourites in NFL during the fourth quarter had a negative impact on the average gross margin for sports betting for the year, which at 3.95% was slightly disappointing, albeit it marked an improvement on the previous year.
The company, which reported a 44% growth in the number of active players, said clients playing poker and casino games lost an average of $2003 last year, while sports punters only lost an average of $698. The most profitable clients used all the products and contributed $2,167 on average.
Chairman David Hudd said the company hoped to reduce its reliance on sports betting by “cross-selling” poker and casino games. The company expects that sportsbetting would account for approximately half gross revenue in 2006.
Chief Executive Colin Walker said Betcorp has started the new year very well and has reversed the sports margin trends experienced in the fourth quarter of 2005.
Betcorp is also trying to accelerate its AIM admission planned for mid March 2006 and its 2006 acquisition and integration startegy.
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