The Australian sportsbook has reported strong trading for the first four-months of the 2007 fiscal year and predicted total revenue of $56.5 million and a profit after tax of $11.6 million for the period.
Centrebet ended the last financial year with total revenues of $46.6m, up 9% year on year, and a profit before exceptional items of $9.9m, up 13% over 2005.
Despite the sports wagering revenue was slightly down compared to 2005, the good results were achieved through the successful cross-selling of casino and poker products to the existing sports betting customers. The sports wagering win rate has also improved from 4.9% to 5.4% as a result of better risk management and favourable results.
Centrebet continues to hold strong positions in Australia and Scandinavia and recently launched a redesigned Spanish website. The company is now holding discussions with potential white label partners in Europe and Asia to provide fully serviced sport and racing product to sporting clubs and associations.
Chairman Graham Kelly reiterated that Centrebet will not be affected by the US online gambling prohibition, but he was disappointed the stock was not trading above its $2 issue price, blaming it on an excessive response to the new US legislation.
Kelly also questioned whether the new US gambling laws would stand under a Democrat-led Congress.
“That legislation was enacted by a Republican Congress,” he said. “Whether that legislation will be enacted when the new congress assembles will be a very different matter.”
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