The vendors of Easybets will receive $5m in shares and $10m in cash, plus 43.5% of annual profits over the next three years providing profits exceed $3m each year. The most the company will pay for Easybets is $32.5m. Easybets has 100,000 customers, with over 70% from China, and in 2004 generated $255m in volume with a net profit of $3.2m. BetonSports announced its pretax profit for the 12 months to 6 February fell to $13.3m from $27m a year earlier on turnover of $1.1 billion, down from $1.25 billion. Chief executive David Carruthers said the sportsbook gross win margin has returned to historic trends and is ahead of forecast. Despite the strong seasonality of the business, the board is pleased with the results achieved in the first quarter and looks forward with confidence to continuing the development of the business in new markets across the world. New customer sign-ups and cash deposits are also in line with forecast and slightly ahead of 2004 levels, while the launch of a poker product is progessing well.
BetonSports buys Easybets
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