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Poker.co.uk - Poker News Archive
Tuesday 12th May 2009 CentreBet Predicts Lower Earnings
In Australia, online gaming and wagering provider CentreBet International Limited has released a market update stating that it has revised its earnings outlook for the financial year to a range of between $7.4 million to $8.1 million.
The announcement means that the full-year net profits after tax excluding one-off costs for Sydney-based CentreBet will now be approximately 30 percent lower than the $10.6 million it forecast in February.
CentreBet stated that its update followed an ‘extensive reforecasting’ as a result of poor wagering win rates in February and March combined with a ‘softening’ in on-course racing alongside flat European trading.
The firm reported net profits after tax of $9.6 million in 2008 and stated that its revenues from online casino, poker and wagering were up approximately eight percent this year, or around $3.5 million, due to a 16 percent rise in the Australian Internet market.
However, on-course racing revenues have fallen by around 33 percent as the transition to online wagering continues while CentreBet also increased investment in Australian customer and revenue acquisition expenditure in order to capitalise on deregulation.
“While the lower financial year 2009 earnings outlook is disappointing, it can be attributed to a number of short-term factors,” said Con Kafataris, Managing Director for CentreBet.
“The longer-term outlook for the business remains robust. Pleasingly, trading during April has been strong. We have conducted a detailed review of our cost base with annual cost savings in excess of $1.4 million being implemented. The Australian online wagering market continues to grow strongly and we will commence our fixed-odds management contract with the Western Australia, Australian Capital Territory and Tasmanian TABs in late May, estimated to deliver in excess of $741,541 in net profits after tax for fiscal year 2010.
“The Australian wagering market is in transition over the next twelve to 24 months as the full benefits of deregulation flow through. We remain very positive about the medium-term growth potential and we must continue to invest if we are going to maximise our share of what is going to be an overall bigger market.”
Source: OnlineCasinoNews
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