While many companies around the world continue to dig themselves out of the yearlong recession that has affected global business, some online gaming companies seem to be doing quite well for themselves. In announcing its third quarter numbers for 2009, Sportingbet PLC joins a small list of gaming companies that have been able to turn a profit.
During the announcement last week of the company’s third quarter 2009 earnings, Sportingbet PLC, which owns the popular online poker room Paradise Poker, reported an increase in revenues versus the same time period last year. Sportingbet PLC was able to show a net profit of £48.6 million for the third quarter 2009, up 26% against the £38.6 million that the company pulled in during the third quarter of 2008.
European betting on Sportingbet’s online sports book seems to be the driving factor for its third quarter success. Amounts wagered on sports betting in Europe grew by 38.2% during the third quarter 2009 to £263.8 million versus 2008’s £190.9 million. “I am pleased to report a solid performance,” stated Andrew McIver, the Group Chief Executive for Sportingbet PLC. “Group performance continues to be driven by the European sports betting business, which has seen strong growth in all its key metrics including amounts wagered and active customer numbers.”
Sportingbet PLC, which is publicly traded on the London Stock Exchange under the symbol “SBT,” admitted to cutting some costs during the third quarter, however. In July, Sportingbet divested itself of ownership in Italian operations, Sportingbet Italia S.p.A., which had been a drain on profits. In addition to this cut, Sportingbet stated that its overall profits could have been better, but continued loss of American revenue and the competition with other online poker rooms that accept U.S. play cut into the bottom line.
McIver continues to be optimistic about the future of the company: “Trading (in Sportingbet PLC stock) since the start of the second quarter has remained robust… The Group performance to date gives the Board confidence with regard to the remainder of the financial year.”
The third quarter report comes on the heels of Sportingbet’s announcement of its fiscal year 2009 numbers, which reflected growth in bookmaking operations and a continued drop in players at Paradise Poker.
In October, Party Gaming announced the results of the third quarter and showed a drop of about 4% of revenues. Party Gaming officials attributed the drop to “higher player numbers offset by lower yields,” meaning they weren’t pulling in as much money even though they had more players. Much like Sportingbet PLC, Party Gaming does not accept any American action. Recently, Party Gaming completed the purchase of assets of the World Poker Tour (WPT), trumping a bid submitted by a subsidiary of the iPoker Network.