Sportingbet settles over Sportsbook

The company recently ended takeover talks after renogotiating the terms of a substantial earnout to the former owners of Sportsbook, which it bought in 2001 to gain a foothold in the US. Despite concerns about its ability to do so, the payment has now been settled following the issue of 28.5m shares and $65m of loan notes.

The announcement came as Sportingbet reported it had generated £1.15bn in turnover during the year to 31 March, compared with £991m last year, and an operating profit of £14.6m. It has more than £20m in cash left in the bank.

Current trading remains strong - in the first quarter of the new fiscal year the company has generated £256m in betting revenues, an increase on the same period last year despite the betting frenzy that occurred during the 2002 World Cup.

Having integrated Sportsbook and Sporting Odds, the group is confident about the future, now that all of its units are trading profitably. Key aims are to reduce debt and capitalise on organic growth.

Sportingbet derives most of its business in the US, where Sportsbook has a strong presence. The company has about 644,000 customers in the North America but warned of ongoing uncertainty over the legal environment in the US.

Despite lobbying for pro-online gaming legislation, there are still moves to outlaw internet gambling for reasons ranging from problem gambling and the break-up of families to the channelling of funds to Al Qaeda.

One of the most recent bills proposed an online gambling ban, with the strange exception of horse and greyhound racing. The concerns of the wider gambling industry in the US about the impact of internet betting on profits is expected to be a far bigger issue than the internet itself.

14 July 2003:

11 June 2003:

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