The online sports content and betting company said that despite a significant increase in revenues, estimated to be at the top end of the market forecasts of £102m to £120m, the profit before tax will be at the lower end of market estimates for the full year.
The company\’s revenues benefited significantly from completely removing competitor advertising from its sports content sites at the end of October 2005, while continuing to drive sports content readers to the group\’s betting sites without any increase in marketing costs.
However, a poor run of horse racing and sports betting results impacted UKbetting\’s gross win, with the result that the company\’s pre-tax profit will be towards the lower end of market estimates. Analysts forecast such earnings would be £1.4m to £2.6m.
The company said in a statement to the stock market that it remains confident that for 2006 and beyond the group\’s business model will continue to deliver strong revenues, low acquisition cost customers and real competitive advantage through its substantial sports content network, which now reaches 8.75 million users and delivers 330 million pages a month.
“As we continue to grow across all revenue streams, UKbetting\’s sensitivity to the vagaries of the sports results will diminish.”
UKbetting shares fell 5% to 53p valuing the business at £50m.
Calculators
