RNS Number:9574N
Sportingbet PLC
25 July 2003
Sportingbet Plc
Preliminary Results for the year ended 31 March 2003 and
Results for the three months ended 30 June 2003
Highlights for the year ended 31 March 2003
* Turnover of #1,150.3m (2002: #991.5m).
* Gross profit of #74.1m at 6.4% of turnover (2002: #60.3m at 6.1%).
* Operating profit of #14.6m (2002: #14.3m) before amortisation of goodwill of
#9.6m (2002: #6.3m) and exceptional costs of #1.4m (2002: #1.5m).
* Profit before tax of #1.4m (2002: #5m) after finance costs, amortisation of
goodwill and exceptional costs.
* Earnings per share pre exceptional costs and goodwill of 7.1p (2002:8.7p).
* Cash inflow in respect of EBITDA of #14.7m (2002: #14.7m), with #20.1m (2002:
#21.5m) of cash and cash deposits on the balance sheet.
Highlights for the three months ended 30 June 2003
* Turnover of #256m (2002: #248.1m).
* Gross profit of #14.1m at 5.5% of turnover (2002: #13.3m at 5.4%).
* Operating profit of #1.4m (2002: #1.4m) before amortisation of goodwill of
#1.7m (2002: #2.4m). Loss before tax of #0.9m (2002: #1.5m).
Business highlights
* Strong growth in customer base, from 558,587 as at 31 March 2002 to 882,971
as at 31 March 2003 and 979,972 as at 30 June 2003.
* Integration of Sportsbook and Sporting Odds both complete.
* Material improvement in trading performance of European Region.
* As announced separately today the earn out of IOE has been renegotiated and
settled, and the Company's banking facilities are in place.
* Earn Out of Number One Betting Shop complete.
Sportingbet Plc Chairman, Peter Dicks said:
"This has been a challenging year for the Group in which we have faced and
largely overcome a number of issues. Notwithstanding this, the Company has
delivered good growth in revenue and solid profitability. Having completed the
integration of the businesses previously acquired, all parts of the Group are
now trading profitably. With the earn out in Australia now complete, the earn
out of Sportsbook renegotiated and settled, bank facilities in place, the
Convertible Loan Stock being repaid imminently, and a solid first quarter behind
us, the Board looks forward to the future with confidence."
Financial Results
Year ended 31 March 2003
Turnover for the 12 months ended 31 March 2003 was #1,150.3m (2002: #991.5m),
with gross margin of #74.1m (2002: #60.3m), at 6.4% of turnover (2002: 6.1%).
Turnover for the year comprised #950.3m on sports betting (2002: #856.8m),
#184.7m on casino betting (2002: #124.5m) and #15.3m from sports and casino "
white label" services (2002: #10.2m).
The gross margin on sports betting was #54.8m (2002: #47.5m), on casino betting
#4.0m (2002: #2.6m) and on services #15.3m (2002: #10.2m). This represented
5.8%, 2.2% and 100% of their turnovers (2002: 5.5%, 2.0% and 100%).
Administration costs, before amortisation of goodwill and exceptional costs, of
#59.5m (2002: #46.0m) represented 5.2% of turnover (2002: 4.6%). Major items of
administration costs were: marketing #12.9m (2002: #10.9m), information
technology #9.4m (2002: #6.7m), banking fees #13.6m (2002: #9.7m) and employee
costs #11.0m (2002: #7.2m). Of the increase in administration costs of #13.5m,
#2.8m arose from the acquisition of Sporting Odds in July 2002 and #6.6m from
the full year impact of Sportsbook acquired in July 2001.
Operating profit before goodwill and exceptional costs was #14.6m (2002:
#14.3m), representing 1.3% of turnover (2002: 1.4%). After charging exceptional
costs of #1.4m (2002: #1.5m), amortisation of goodwill of #9.6m (2001: #6.3m),
and net finance costs of #2.2m (2002: #1.5m), profit before tax was #1.4m (2002:
#5.0m). The exceptional costs relate principally to the write-off of a court
imposed Australian bad debt, which is the subject of an appeal.
Included within finance costs of #2.2m is a non cash charge of #1.5m (2002:
#1.0m) arising from the discounting of future earn out liabilities back to
current values in accordance with UK accounting standard FRS7.
Earnings per share pre exceptional costs and goodwill was 7.1p per share (2002:
8.7p). After taking account of exceptional costs and goodwill, earnings per
share was 0.8p (2002: 3.4p).
The Group generated operating cash inflows in respect of EBITDA of #14.7m (2002:
inflow of #14.7m) and as at 31 March 2003 the Group had #20.1m (2002: #21.5m) of
cash and cash deposits on its balance sheet.
The carrying value of goodwill on the balance sheet is based upon the cash
payable and the fair value of share consideration for acquisitions previously
made. As the consideration obligations for such acquisitions were denominated in
US$ and AUS$ respectively, and contain equity consideration, the year on year
movement in exchange rates and the company's share price has accordingly
impacted upon the balance sheet items of goodwill and shares to be issued. The
future accounting treatment of the Group will reflect the fact that obligations
under both the Sportsbook and NOBS earn outs have been settled and are now
fixed.
In arriving at the goodwill carrying value of the Sportsbook and NOBS businesses
at 31 March 2003, the balance sheet has been presented as if the settlement of
the obligations with the vendors of Sportsbook and completion of the NOBS earn
out had happened at that date.
Fourth quarter to 31 March 2003
Turnover for the three months ended 31 March 2003 was #301.5m (2002: #345.9m),
with gross margin of #20.0m (2002: #21.8m), at 6.6% of turnover (2002: 6.3%).
Turnover for the three months ended 31 March 2003 comprised #244.3m on sports
betting (2002: #296.6m), #53.6m on casino betting (2002: #45.1m) and #3.6m from
sports and casino "white label" services (2002: #4.2m). The fall in sports
turnover includes both the Group's exit from the Asian and Australian wholesale
markets and the adverse movement in the #/US$ exchange rate.
The gross margin on sports betting was #15.1m (2002: #16.8m), on casino betting
#1.3m (2002: #0.8m) and on services #3.6m (2002: #4.2m). This represented 6.2%,
2.4% and 100% of their turnovers (2002: 5.7%, 1.8% and 100%).
Administration costs, before amortisation of goodwill and exceptional costs, of
#16.0m (2002: #15.6m) represented 5.3% of turnover (2002: 4.5%). Major items of
administration costs were: marketing #3.4m (2002: #3.6m), information technology
#2.6m (2002: #2.0m), banking fees #3.6m (2002: #3.7m) and employee costs #2.7m
(2002: #3.0m).
Operating profit before goodwill and exceptional costs was #4.0m (2002: #6.2m),
representing 1.3% of turnover (2002: 1.8%). The loss before tax was #0.4m (2002:
profit of #1.8m) after deducting exceptional costs of #1.4m (2002: #0.5m),
goodwill amortisation of #2.4m (2002: #2.7m) and net finance costs of #0.6m
(2002: #1.2m). Included within finance costs of #0.6m is a non cash charge of
#0.4m (2002: #1.0m) arising from the discounting of future earn out liabilities
back to current values in accordance with UK accounting standard FRS7.
Review of Operations
In the twelve months to 31 March 2003, customer numbers increased from 558,587
to 882,971. Of this increase, 260,851 customers were gained from organic growth
and 63,533 through the acquisition of Sporting Odds at the end of July 2002.
Region 31 Mar 03 31 Mar 02
AMER 644,349 468,429
EMEA 201,514 54,884
AA 37,108 35,274
Total 882,971 558,587
AMERICA (AMER)
In the twelve months ended 31 March 2003 Sportingbet's US facing business made
good progress. The integration of Sportsbook into Sportingbet was completed in
July 2002 and since then the business has operated under one management
structure and a single software platform. The integration was completed without
business disruption and has yielded savings in labour and infrastructure costs
in line with the targets set out when Sportsbook was acquired.
Customer numbers increased by 175,920 (38%), through organic marketing
activities. The number of sports bets placed increased by 6.2m to 17.4m (2002:
11.2m). Of this increase, 2.5m can be attributed to the full year effect of the
acquisition of Sportsbook and 3.7m from organic activities. The increase in the
number of bets placed reflects both the increase in customer numbers and a
widening of product offered. The average bet size remained relatively stable at
$59 (#37) (2002: $60) as has the gross margin from sports bets at 6.7% (2002:
6.9%).
In addition to its core sports product, the gross margin from the Group's US
facing casino business and white label fee income made good progress. The gross
margin on own label casino activities was #2.2m (2002: #1.6m) and the gross
margin on fee income was #15.3m (2002: #10.2m). The cost of taking a bet,
represented by total operating costs divided by the number of sports bets
placed, fell to #2.32 per bet, (2002: #2.57). This fall reflects the integration
savings referred to above and the scaling of the cost base as volumes increase.
The reduction was less than anticipated, reflecting the increase in unit banking
costs during the 12 months ended 31 March 2003.
Historically, customers in the US online gaming market have used their credit
cards as the primary means of depositing funds with online gaming companies.
During the year the processing of such cards was unexpectedly more difficult as
a result of a number of US banks suspending the processing of online gaming
transactions. This restricted supply into the US market caused the cost of
processing to rise by 30 per cent between November 2002 and January 2003. Since
then, Sportingbet has been developing a number of new payment channels which are
more cost effective and less dependent upon credit cards.
Sportingbet uses a third party software product from World Gaming Plc for its US
facing business. Subsequent to the end of the financial year, Sportingbet has
enhanced its close working relationship with World Gaming. Sportingbet has made
a $1m loan to World Gaming for the purposes of securing additional hardware, and
now has a 29.9% equity interest in the company, together with a convertible note
2006 which, if converted, would give Sportingbet a total interest of 39.4%. The
hardware loan, which is repayable over the next twelve months and 16% of the
29.9% equity interest have together been financed through the issue of US$3.5m
non interest bearing loan notes repayable in January 2007. World Gaming Plc will
be accounted for as an associate company in the current financial year ending 31
March 2004.
EUROPE, MIDDLE EAST AND AFRICA (EMEA)
The twelve months ended 31 March 2003 represent a watershed year for the Group's
European business. Historically this region has been a loss making part of the
Group. Following the acquisition of Sporting Odds in July 2002, together with
the introduction of a wide range of new products, the penetration into new
markets and increased penetration into existing markets, Sportingbet's business
in Europe has expanded significantly and was profitable in the three months to
31 March 2003, despite the poor margins earned at the UK Cheltenham racing
festival in March 2003.
Customer numbers in the European region have risen by 146,630 (267%). Of this
increase, 63,533 arose from the acquisition of Sporting Odds in July 2002 and
83,097 from organic marketing activities. The number of sports bets placed
increased by 2.7m to 4.4m. Of this increase, 1.2m came from the acquisition of
Sporting Odds in July 2002 and 1.5m from organic activities. The average bet
size fell during the period to #24 (2002: #52). This reduction reflects the
penetration into new lower staking markets. The gross margin percentage from
sports bets, after charging UK betting tax has increased by 1.3% to 5.5%,
reflecting the scale change in the region's business.
In addition to its core sports product the European business has progressively
introduced a broad range of casino and gaming products. Gross margin from these
products has risen by #1.2m to #1.8m. In line with the increase in scale of the
region's business, the cost of taking a bet has fallen to #2.15 (2002: #3.50)
and is now the lowest in the Group reflecting both the region's developed
regulatory environment and its mature supply base.
AUSTRALIA AND ASIA (AA)
The Board has consistently taken a cautious approach to trading in Asia. The
gross margin in this region is now being derived through retail customers rather
than using wholesale agents. The Board is confident that this customer strategy
will now deliver a solid and profitable business in this region.
In the twelve months ended 31 March 2003 Sportingbet's business in Australia has
been disappointing. The industry in this region revolves predominantly around
horse racing. A long and sustained drought during the peak season led to a
reduction in the number of horses racing and an increase in the predictability
of outcome. Accordingly, horse racing margins for all operators in the market
were lower than the long term average. Furthermore, in January 2002 Sportingbet
relocated its business onshore into a regulated and tax paying environment in
Darwin, which has further reduced gross margin.
Customer numbers in the Australian region have risen by 1,834 (5.2%), all from
organic marketing activities. During the year Sportingbet exited from the
wholesale business in the region and closed a number of accounts. On a like for
like basis, customer numbers have risen by 2,934 (8.3%). The number of sports
bets placed increased by 0.2m to 0.8m.
The average bet size fell during the period to AUS$620 (2002: $1,098),
reflecting the exiting from wholesale business. The gross margin percentage from
sports bets also fell to 3.3% (2002: 4.1%). This reduction reflects both the
effect of the drought and our relocation to a betting tax paying location. The
cost of taking a bet has, however, fallen to #6.33 (2002: #10.15).
The Board believes that the cultural environment for sports betting in Australia
is changing and that there is now a marked acceptance of the Internet as a
channel for betting. The Group's Internet product was launched in June 2003. To
date Sportingbet's business in the region has been telephone based and the key
performance indicators of the region reflect this.
Financing
As separately announced today, the Company's earn out obligations with the
vendors of Sportsbook.com have been successfully renegotiated and settled. In
addition, Barclays Bank PLC has agreed to provide the Company with a #10 million
revolving term loan facility, repayable by 31 March 2005, and to extend the
Company's overdraft facility to #10.5 million. The Company's #6.5m Group
Convertible Loan Stock is redeemable on 27 July 2003. Accordingly, the Company
will redeem the Loan Stock on the next business day, being Monday 28 July 2003.
Regulatory Developments
During the year there has been considerable discussion in the UK regarding the
regulation and modernisation of its gambling legislation. The Board welcomes the
changes which it believes to be encouraging for Sportingbet. Specifically, the
paper from the Department of Culture Media and Sport "The Future Regulation of
Remote Gambling" addresses the area of the regulation of remote gambling for
licensed UK companies wherein it is proposed that properly licensed UK operators
can accept bets from remote (i.e. non UK) locations. The paper and the draft
Gambling Bill recently published confirm the UK Government's previously stated
policy of regulation, taxation and encouragement for the UK to become a leading
jurisdiction for the industry.
Elsewhere within the European Union some countries are attempting to follow a
protectionist approach. In January 2003 the District Court in Arnhem, Holland,
ruled against two non Dutch based companies in the industry, ordering them to
block customers in Holland from placing sports fixed odds bets. This decision
is being appealed. The decision was in support of the Dutch Government's sole,
monopolistic sports betting licence granted to De Lotto. Further, the Danish
Government enacted legislation in March 2003 which provides that bets cannot be
accepted from Danish citizens without a Danish licence being granted to such
providers. In contrast to these protectionist developments, in March 2003
Advocate-General Gambelli of the European Court of Justice ruled in a
gaming-related matter that the only justification for individual countries to
place restrictions on the EU principle of the freedom to provide services is
where fundamental national interests such as public policy, public health or
state security apply. The Board believes that such a ruling calls into question
the current positions in Holland and Denmark and continues to monitor
developments with interest.
The regulatory debate in the US has continued to be active. During the year,
Sportingbet conducted an extensive lobbying campaign designed to set out the
merits of a liberal but regulated environment. This campaign continues to
attract interest from politicians. At the end of the 107th Congress in the
Autumn of 2002 a Bill by Representatives Conyers and Cannon was introduced,
designed to create a commission to resolve how to regulate internet gambling.
This was the first time that permissive legislation at a Federal level has been
considered in the US. A number of individual States have also begun to explore
how they might regulate the industry within their State in order to raise
taxation revenues. In contrast, at the outset of the 108th Congress, in the
Spring of 2003, a Bill by Representative Bachus aimed at outlawing the use of US
financial instruments for the purposes of internet gambling was introduced. This
latter Bill, which does not currently contain any civil or criminal penalties,
passed through the House of Representatives in June 2003. The progress of this
Bill and a sister Bill through the Senate is far from clear. The Board believes
that the overall position remains one of uncertainty and that the debate is
likely to continue throughout the current financial year.
In contrast, the established regulatory framework for sports betting in
Australia has been stable. Regulated licences in Australia do not allow casino
and gaming products to be provided to Australian citizens and the current
position with regard to the provision of an internet betting exchange is
unclear. As part of its previously stated policy, the Government is to review
the regulatory framework for the industry in 2003. The position with regard to
online casinos, exchanges and other matters is expected to be included within
this review. The Board anticipates that this review will permit an expanded
product offering to Australian citizens.
In Asia, the regulatory framework continues to vary by country. Hong Kong has
followed a largely protectionist approach. A bill to legalise soccer betting in
Hong Kong was passed on 10 July 2003 providing an exclusive licence to be issued
to the Hong Kong Jockey Club. The Board will monitor the effectiveness of such
an approach with interest. In Thailand, after a year long study, a government
advisory body has recently concluded that, whilst it recognised that its
citizens gamble, circumstances were not yet appropriate to regulate the industry
within Thailand. By contrast, the Philippines have recently announced that
Internet gaming licenses are now available from a Special Economic Zone in their
country.
3 months ended 30 June 2003
Turnover for the three months to 30 June 2003 was #256.0m (2002: #248.1m). The
three months ended 30 June 2002 included the World Cup 2002. Gross profit was
#14.1m (2002: #13.3m), representing 5.5% of turnover (2002: 5.4%). Turnover for
the three months ended 30 June 2003 comprised #193.8m on sports betting (2002:
#208.6m), #59.4m on casino betting (2002: #35.4m) and #2.8m (2002: #4.1m) from
sports and casino "white label" services.
The gross margin on sports betting was #9.4m (2002: #8.4m), on casino betting
#1.9m (2002: #0.9m) and on services #2.8m (2002: #4.1m). This represented 4.9%,
3.2% and 100% of their respective turnovers (2002: 4.0%, 2.5% and 100%).
Administration costs, before amortisation of goodwill and exceptional costs, of
#12.7m (2002: #11.9m) represented 5.0% of turnover (2002: 4.8%). Major items of
administration costs were: #2.7m of marketing (2002: #2.7m), #2.0m of
information technology costs (2002: #1.7m), #2.8m of banking fees (2002: #2.3m)
and #2.5m of employee costs (2002: #2.7m).
Operating profit before goodwill was #1.4m (2002: #1.4m) representing 0.5% of
turnover (2002: 0.6%). The loss before tax was #0.9m (2002: #1.5m) after
deducting goodwill amortisation of #1.7m (2002: #2.4m) and net finance costs of
#0.6m (2002: #0.5m) which includes #0.4m (2002: #0.4m) of non cash consideration
in accordance with UK accounting standard FRS7.
In the three months ended 30 June 2003, customer numbers increased from 882,971
to 979,972. All of this increase was gained from organic growth.
CUSTOMER NUMBERS
Region 31 Mar 03 30 Jun 03 30 Mar 02 30 Jun 02
AMER 644,349 681,222 468,429 503,220
EMEA 201,514 261,039 54,884 73,568
AA 37,108 37,711 35,274 31,423
Total 882,971 979,972 558,587 608,211
AMER
Customer numbers have risen by 36,873 (5.7%) all of whom were gained from
organic marketing activities. Despite a higher customer base, the number of
sports bets placed remained static at 3.1m. This reflects the fact that the US
baseball season this year has had the lowest US television ratings since 1981 as
a result of the more popular teams exiting the main competitions at an early
stage, and to a lesser extent, the year on year impact of the 2002 World Cup in
Korea and Japan. Conversely the loss of the favoured baseball teams has had a
beneficial effect on margin with the gross margin percentage from sports bets
increasing to 5.6% (2002: 5.0%). Business integration cost savings reduced the
cost of taking a bet to #2.46 (2002: #2.70). The average bet size remained
relatively stable at $57 (2002: $60). Casino margin and fee income levels
reduced to #3.2m (2002: #3.8m) as a result of the generally lower betting
activity.
In the three months ended 30 June 2003 Sportingbet's American business has put
in place a number of new initiatives. The Group's close working relationship
with its supplier, World Gaming, has enabled a number of new product initiatives
such as horse racing, poker, bingo and a new casino to be developed, along with
important new technology to improve the processing of customer funds. These new
initiatives are expected to be launched in August, placing the business in a
good position for the forthcoming busy season.
The new payment channels being developed by the Group have progressed further in
the three months ended 30 June 2003 and are on target to be launched prior to
the busy season. Developments to date have resulted in a reduction in bank
charges which have fallen to 1.1% of turnover in the three months ended 30 June
2003 from 1.3% in the previous six month period.
Subsequent to 30 June 2003, Sportingbet has, as part of the settlement of its
earn out obligations, acquired for a nominal sum the ownership of certain casino
websites previously operated under a white label management agreement with the
vendors of Sportsbook.com. Following this change the Board is considering
accounting for the turnover of its entire casino business on a net win basis
rather than on a bets placed basis as at present, given that both bases are
acceptable within the industry. If this potential revised policy had been in
place for the three months ended 30 June 2003, there would not have been any
impact upon the profitability of the Group. Any change to policy will be
reflected in the results for the three months to 30 June 2003 and thereafter.
EMEA
Sportingbet's European business has continued to progress well and has been
profitable for the quarter. Customer numbers have increased by 59,525 (29%) all
of which have arisen through organic growth. This increase compares to an
increase of 18,684 in the three months ended 30 June 2002. The number of sports
bets placed increased by 1.25m to 1.7m. The average bet size has fallen to #20
(2002: #26). This reduction reflects the effect of the World Cup in 2002. The
gross margin percentage from sports bets, after charging UK betting tax, was
relatively stable at 5.8% (2002: 6.1%). The region continues to make strong
progress in its casino and gaming products with gross margin increasing to #1.4m
(2002: #0.1m). In line with the change in scale, the cost of taking a bet has
fallen to #1.86 (2002: #4.03). The cost per bet in the European region is the
lowest in the Group.
AA
The Board is pleased to report that gross margin in its Australian business has
improved and that the region has delivered a solid first quarter. Sportingbet's
new internet platform in Australia was launched in June and progress to date has
been encouraging. The Board believes that it now has an industry leading
product into the region and looks forward to developing this new business
opportunity further as Australian customers continue to migrate from telephone
betting to internet betting.
Customer numbers in the Australian region have increased by 603 (2%), all from
organic marketing activities. The number of sports bets placed increased by 0.1m
to 0.24m. The average bet size has fallen during the period to AUS$590 (2002:
$880), reflecting the final quarter of the exiting from wholesale business. The
gross margin percentage from sports bets after tax increased to 3.2% (2002:
2.8%). The cost of taking a bet has fallen to #4.52 (2002: #7.64).
Outlook
Sportingbet approaches the future with confidence. All regions of the Group are
trading profitably, the Number One Betting Shop earn out has been completed, the
IOE earn out has been settled and debt rescheduled and new banking facilities
are in place. The Board's focus is now firmly on developing the business it
has built over the last three years, maximising organic growth and reducing its
debt in a timely manner through the delivery of solid profitability.
The Board believes that the online sports betting and gaming industry has now
entered a new phase of development wherein the larger players are becoming more
successful having achieved critical mass and profitability, whilst a number of
smaller players are ceasing to trade. The Board believes that as a result of
its profitability, its sound business practices and its position as the leading
worldwide provider, Sportingbet is well placed to capitalise on the organic
growth opportunities that this provides.
Further Enquiries
Sportingbet:
Nigel Payne (Chief Executive Officer) Tel: 020 7251 7260
Andy McIver (Group Finance Director)
Cubitt Consulting:
Peter Ogden Tel: 07811 124 197
Analyst Presentation
There will be a presentation for analysts this morning at 10.00, at DKW, 20th
Floor, 20 Fenchurch Street.
The information contained herein is not for publication or distribution to
persons in the United States of America. The securities referred to herein have
not been and will not be registered under the US Securities Act 1933, as
amended, and may not be offered or sold without registration thereunder or
pursuant to an available exemption therefrom.
Sportingbet Plc
Unaudited Consolidated Profit and Loss Account
Twelve months ended 31 March 2003
Notes 3 months 12 months 12 months
31 Mar 31 Mar 31 Mar
2003 2003 2002
#m #m #m
TURNOVER 2 301.5 1,150.3 991.5
Cost of sales (281.5) (1,076.2) (931.2)
GROSS PROFIT 20.0 74.1 60.3
Gross profit % 6.6% 6.4% 6.1%
Exceptional costs (1.4) (1.4) (1.5)
Goodwill amortisation (2.4) (9.6) (6.3)
Other administration expenses (16.0) (59.5) (46.0)
Total administration expenses (19.8) (70.5) (53.8)
Group operating profit before
exceptional costs and goodwill
amortisation 4.0 14.6 14.3
Exceptional costs (1.4) (1.4) (1.5)
Goodwill amortisation (2.4) (9.6) (6.3)
GROUP OPERATING PROFIT 0.2 3.6 6.5
Finance costs 3 (0.6) (2.2) (1.5)
PROFIT/(LOSS) BEFORE TAXATION (0.4) 1.4 5.0
Taxation 0.1 - -
PROFIT/(LOSS) AFTER TAXATION (0.3) 1.4 5.0
Minority Interest - - -
PROFIT/(LOSS) FOR THE FINANCIAL
PERIOD (0.3) 1.4 5.0
EARNINGS PER ORDINARY SHARE (0.2)p 0.8p 3.4p
ADJUSTED EARNINGS PER SHARE (PRE 2.0p 7.1p 8.7p
EXCEPTIONALS AND GOODWILL)
EBITDA PER SHARE
1.7p 8.4p 9.9p
DILUTED EARNINGS PER SHARE (0.1)p 0.5p 3.2p
All amounts relate to continuing activities
Sportingbet Plc
Unaudited Consolidated Balance Sheet
As at 31 March 2003
31 March 31 March
Notes 2003 2002
#'m #'m
FIXED ASSETS
Intangible fixed assets - goodwill 125.1 184.2
Tangible assets 4.3 3.1
129.4 187.3
CURRENT ASSETS
Debtors 4 9.8 7.5
Cash at bank and in hand 20.1 21.5
TOTAL CURRENT ASSETS 29.9 29.0
CREDITORS:
Amounts falling due within one year 18.5 20.0
Convertible loan notes 9.0 3.5
NET CURRENT ASSETS 2.4 5.5
TOTAL ASSETS LESS CURRENT LIABILITIES 131.8 192.8
CREDITORS:
Amounts falling due after more than one year 0.1 -
Provisions for liabilities and charges 43.3 48.3
Convertible loan notes - 13.6
NET ASSETS 88.4 130.9
CAPITAL AND RESERVES
Called up share capital 0.2 0.2
Shares to be issued 29.5 87.6
Share premium 48.6 43.2
Other reserves 13.8 5.1
Profit and loss account (3.7) (5.2)
SHAREHOLDERS' FUNDS - EQUITY 88.4 130.9
Minority Interests - -
88.4 130.9
Sportingbet Plc
Unaudited Consolidated Cash Flow statement
Twelve months to 31 March 2003
12 months ended 12 Months ended
31 March 31 Mar
2003 2002
#'m #'m
Cash inflow in respect of EBITDA 14.7 14.7
Net working capital movement (5.5) 2.5
Net cash inflow from operating activities 9.2 17.2
Returns on investment and servicing of finance (0.6) (0.4)
Taxation - -
Capital expenditure (1.9) (1.9)
Acquisitions (8.0) (12.9)
CASH INFLOW BEFORE USE OF LIQUID RESOURCES AND BEFORE (1.3) 2.0
FINANCING
Management of liquid resources (6.0) (4.8)
Financing (0.1) 7.3
(DECREASE)/ INCREASE IN CASH IN THE PERIOD (7.4) 4.5
RECONCILIATION OF NET CASHFLOW TO MOVEMENT IN NET FUNDS
(Decrease)/ Increase in cash in the period (7.4) 4.5
Cash outflow from increase in liquid resources 6.0 4.8
Cash outflow from decrease in debt 10.6 5.2
MOVEMENT IN NET FUNDS RESULTING FROM CASH FLOWS IN PERIOD 9.2 14.5
Loan notes issued to fund acquisition (2.5) (15.6)
Movement in net funds in period 6.7 (1.1)
Net funds at start of period 4.4 5.5
NET FUNDS AT END OF PERIOD 11.1 4.4
Sportingbet Plc
Notes for the twelve months to the 31 March 2003
1. Consolidated statement of total recognised gains and losses
12 months to 12 months to
31 Mar 2003 31 Mar 2002
#'m #'m
Profit for financial year 1.4 5.0
Exchange translation differences on consolidation 0.1 -
Total recognised gains for the financial year 1.5 5.0
2. 3 months to 12 months to 12 months to
31 Mar 2003 31 Mar 2003 31 Mar 2002
a) Analysis of revenue by activity #'m #'m #'m
Sports Betting 244.3 950.3 856.8
Casino Betting 53.6 184.7 124.5
Fee Income 3.6 15.3 10.2
301.5 1,150.3 991.5
b) Analysis of revenue by region
AMER 189.7 763.6 573.5
EMEA 60.9 173.0 96.8
AA 50.9 213.7 321.2
301.5 1,150.3 991.5
3. Finance costs:
Interest receivable - 0.1 0.2
Interest payable (0.2) (0.8) (0.7)
(0.2) (0.7) (0.5)
Deferred consideration discount (0.4) (1.5) (1.0)
(0.6) (2.2) (1.5)
4. Included in debtors is an amount of #3.3m relating to a payment
processing supplier that has been terminated. The Board expects this amount
to be recoverable.
5 The financial statements have been prepared on the basis of the
accounting policies set out in the Group's 2002 statutory accounts. These
Accounts do not constitute statutory financial statements within the
meaning of section 240 of the Companies Act 1985 The financial information
for the year ended 31 March 2002 has been extracted from the Annual Report
and Accounts, which has been filed with the Registrar of Companies. The
auditors report on those accounts was unqualified and did not contain any
statement under section 237(2) or (3) of the Companies Act 1985.
6. There is no material tax charge for the year. There are UK tax losses
available to carry forward and set off against future profits subject to
agreement with the Inland Revenue.
7. The directors do not propose a dividend to be paid for the year.
8. The basic earnings per share is based on the profit on ordinary
activities after taxation of #1.4m (2002: #5.0m), and on the weighted
average number of shares in issue of 174,649,840 (2002:148,048,110).
9. Exchange rates
US $ year end rate US $ average rate
Year ended 31 March 2003 1.58 1.55
Year ended 31 March 2002 1.42 1.44
Sportingbet Plc
Unaudited Consolidated Profit and Loss Account
Three months ended 30 June 2003
Notes 3 months 3 Months
30 June 30 June
2003 2002
#'m #'m
TURNOVER 2 256.0 248.1
Cost of sales (241.9) (234.8)
GROSS PROFIT 14.1 13.3
Gross profit % 5.5% 5.4%
Exceptional costs - -
Goodwill amortisation (1.7) (2.4)
Other administration expenses (12.7) (11.9)
Total administration expenses (14.4) (14.3)
Group operating profits before exceptional
costs and goodwill amortisation 1.4 1.4
Exceptional costs - -
Goodwill amortisation (1.7) (2.4)
GROUP OPERATING LOSS (0.3) (1.0)
Finance costs 6 (0.6) (0.5)
LOSS BEFORE TAXATION (0.9) (1.5)
Taxation - (0.1)
LOSS AFTER TAXATION (0.9) (1.6)
Minority Interest - -
LOSS FOR THE FINANCIAL PERIOD (0.9) (1.6)
EARNINGS PER ORDINARY SHARE (0.5)p (1.0)p
EARNINGS PER SHARE (PRE EXCEPTIONALS AND 0.5p 0.5p
GOODWILL)
EBITDA PER SHARE
0.9p 1.1p
All amounts relate to continuing activities.
Sportingbet Plc
Unaudited Consolidated Balance Sheet
As at 30 June 2003
30 June 30 June
Notes 2003 2002
#'m #'m
FIXED ASSETS
Intangible fixed assets - goodwill 126.3 181.7
Tangible assets 4.6 3.2
130.9 184.9
CURRENT ASSETS
Debtors 3 12.0 8.8
Cash at bank and in hand 14.5 17.7
TOTAL CURRENT ASSETS 26.5 26.5
CREDITORS:
Amounts falling due within one year 15.5 18.1
Convertible loan notes 9.0 -
NET CURRENT ASSETS 2.0 8.4
TOTAL ASSETS LESS CURRENT LIABILITIES 132.9 193.3
CREDITORS:
Amounts falling due after more than one year
Provisions for liabilities and charges 45.5 48.5
Convertible loan notes - 13.5
NET ASSETS 87.4 131.3
CAPITAL AND RESERVES
Called up share capital 0.2 0.2
Shares to be issued 29.5 87.6
Share premium 48.6 45.2
Other reserves 13.8 5.1
Profit and loss account (4.7) (6.8)
SHAREHOLDERS' FUNDS - EQUITY 87.4 131.3
Minority Interests - -
87.4 131.3
Sportingbet Plc
Unaudited Consolidated Cash Flow statement
Three months to 30 June 2003
3 Months ended 3 Months ended
30 June 30 June
2003 2002
#'m #'m
Cash inflow in respect of EBITDA 1.7 1.7
Net working capital movement (5.2) (2.5)
Net cash outflow from operating activities (3.5) (0.8)
Returns on investment and servicing of finance (0.2) 0.1
Capital expenditure (0.6) -
Acquisitions (1.3) (3.1)
CASH OUTFLOW BEFORE FINANCING (5.6) (3.8)
Management of liquid resources 2.0 (0.6)
Financing - -
DECREASE IN CASH IN THE PERIOD (3.6) (4.4)
RECONCILIATION OF NET CASHFLOW TO MOVEMENT IN NET FUNDS
Decrease in cash in the period (3.6) (4.4)
Cash (inflow)/outflow from (decrease)/increase in liquid (2.0) 0.6
resources
Cash outflow from decrease in debt - 2.8
MOVEMENT IN NET FUNDS RESULTING FROM CASH FLOWS IN PERIOD (5.6) (1.0)
Movement in net funds in period (5.6) (1.0)
Net funds at start of period 11.1 4.4
NET FUNDS AT END OF PERIOD 5.5 3.4
Sportingbet Plc
Notes for the three months to the 30 June 2003
1. Consolidated statement of total recognised gains and losses
3months to 3months to
30 June 2003 30 June 2002
#'m #'m
Loss for period (0.9) (1.6)
Exchange translation differences on consolidation (0.1) -
Total recognised gains and losses for the financial period (1.0) (1.6)
2.
3 months to 3 months to
30 June 30 June
2003 2002
a) Analysis of revenue by activity #'m #'m
Sports Betting 193.8 208.6
Casino Betting 59.4 35.4
Fee Income 2.8 4.1
256.0 248.1
b) Analysis of revenue by region
AMER 129.9 158.6
EMEA 72.0 23.9
AA 54.1 65.6
256.0 248.1
3. Included in debtors is an amount of #3.3m relating to a payment
processing supplier that has been terminated. The Board expects this amount
to be recoverable.
4. The financial statements have been prepared on the basis of the
accounting policies set out in the Group's 2003 statutory accounts. These
Accounts do not constitute statutory financial statements within the
meaning of section 240 of the Companies Act 1985.
5. The basic loss per share is based on the loss on ordinary
activities after taxation of #(0.9)m (2002: loss of #1.5m), and on the
weighted average number of shares in issue of 179,195,360 (2002: 157,525,509).
6.
Finance costs: 3months to 3months to
Interest receivable 30 June 2003 30 June 2002
Interest payable (0.2) (0.2)
(0.2) (0.1)
Deferred consideration discount (0.4) (0.4)
(0.6) (0.5)
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR PUUGCMUPWGRC
