Unibet remain positive after big Spanish Tax payment hits profit margin2nd November 2012 / lee
Swedish based gambling operator Unibet took a hit in their profit for the third quarter of the financial year. While the group reported that revenue had gone up to around £44 million in the three months to the end of September, which was a good £5 million more than the same period twelve months ago, the profit margins of the company suffered badly to what they were. While a drop in profits was something of a trend among bookmakers over the summer, there were other extenuating circumstances hitting Unibet harder.
Betting site Unibet took a 55% drop in profit compared to last year, dropping from £8.2 million down to £4. The biggest reason for their drop in profit was because they had to shell out over £2.5 million in a one off tax payment to the Spanish authorities. The Spanish online betting market is notoriously difficult and complicated with their new regulations and Unibet found themselves owing a lot on the previous trading history in the country.
But Unibet CEO Henrik Tjärnström said that “costs within the business remain under good control, which allowed us to deliver a robust result. Daily gross winnings revenues in the first four weeks of October have been up 29 per cent compared to the third quarter. Compared to the same period in October 2011, underlying gross winnings revenues in local currency are more than 20 per cent higher as a result of volume growth, as sportsbook margins are very similar to last year.”
On a positive note, Unibet did see a rise in their active customers. Other reasons cited for a drop in profits in the third quarter was because of the quiet football betting period between the European Championships and the re-start of the European domestic leagues. The London 2012 Olympics also kept punters busy and away from betting sites because of the full blanket coverage of the event on television.