Aim-listed online sports betting specialist Sportingbet moved into a £1.4 million operating profit in the first quarter to June 2002, which its directors say is the quietest quarter of the financial year. James Crux reports.

Sportingbet's (SBT) first quarter figures showed a £200,000 loss making way for a £1.4 million profit, before amortisation of goodwill. Margins improved, with gross profits lifted from £3.8 million to £13.3 million, and now representing 5.4 per cent of turnover, against only 3.4 per cent of sales last time out.

Group turnover rocketed from £111.5 million to £248.1 million, though pre-tax losses widened from £1 million to £1.5 million after finance costs and a goodwill charge of £2.42 million (£562,000). Sportingbet also had £17.7 million cash in the bank, against only £6 million this time last year.

Chairman Peter Dicks comments that 'due to the seasonality of the sporting calendar, this is the quietest quarter of our financial year to March. It's therefore gratifying to see an operating profit of £1.4 million, a successful start to the new financial year.'

Of that group revenue total, some £208.6 million came from sports betting, £35.4 million from casino betting and £4.1 million from sports and casino 'white label' services. Customer numbers rose by 49,624 to 608,211, with the World Cup contributing 11,000 new customers. Significantly, the recent acquisition 'Sporting Odds', which was the fixed odds business of spread-betting firm Sporting Index, has brought in another 68,000 punters.

In June, Sportingbet impressed the market by making £5 million pre-tax (£4.2 million loss) on turnover of £991.5 million for the year to March 2002. However, the shares shed 4.5p to only 75.5 p in early dealings today, against 52-week peaks and troughs of 167.5p and 67p, valuing the business at £103.3 million.

The price has suffered in recent times, partly due to concerns about mounting US regulatory pressure and partly on rumours bear raider Simon Cawkwell, aka Evil Knievel, closed a short position on the stock.

Sportingbet	AIM	£125.86m	26.50p	0.00p
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