Henrik Tjärnström

Euro Delight! Unibet hits £38 million profits for H1 2016

Henrik Tjärnström
Henrik Tjärnström

Stockholm-listed European sports betting operator Unibet Plc, continues its strong 2016 momentum posting a consecutive ‘all-time’ revenue quarter in its latest interim results for Q2 and H1 2016 (unaudited period ending 30 June).

Updating the market this morning, Unibet governance would detail that the company had recorded group revenues of £126 million for Q2 2016 (Q2 2015: £80 million), closing its H1 revenues at £249 million (H1 2015: £156 million).

Reporting growth throughout its top-line metrics with strong contributions across its brands, Unibet would declare an underlying EBITDA of £50.5 million (£39 million) for H1 2016 combined with H1 group profits of £38 million (H1 2016: £26.5 million).

Unibet Q2 & H1 2016 Performance Overview

Screen Shot 2016-07-27 at 09.03.29

As expected Q2 corporate activity would be characterised by Euro 2016 performance which saw Unibet register +1.1 million active customers throughout its European betting portfolio (brands: Unibet, iGame and Stan James Online).

Targeting this key industry period, Unibet governance detailed that the company had boosted its marketing expenditure with the aim of acquiring new customers and reactivating existing player accounts.

Its increased marketing activity would reduce Q2 profits to £13 million, nevertheless, Unibet governance are confident that its betting brands will sustain period growth in their upcoming quarters, helping the company hit its full-year 2016 targets.

Commenting on H1 2016 performance  Unibet Group’s CEO Henrik Tjärnström stated;

“The quarter was characterised by the Euro 2016 which provided a new all-time high in customer activity and continued strong growth. Margins in the tournament were significantly higher in July than in June. If the margins had been consistent across the tournament, then Gross winnings revenue for the second quarter would have been around GBP 3 million higher.”

“As in previous tournament years, we invested heavily in marketing both for new customer acquisition and reactivation of existing customers. While this has a short term effect in reducing profits, we are confident that this as proven previously will drive sustained growth in Gross winnings revenue and profits. For the quarter, marketing was 30 per cent of Gross winnings revenue, but for the full year we still expect it to average a few percentage points below 30 per cent.”

“In the period from 1 to 24 July 2016, average daily Gross winnings revenue in GBP has more than doubled compared to the same period in 2015. Adjusting for the unusually high margin on the final stages of the Euros, the impact of exchange rate changes and acquisitions, the organic constant currency growth is close to 50 per cent,

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