Fortuna Entertainment records H1 2017 revenue & KPI growth despite enlargement costs

Presenting its H1 2017 interim results (period ending 30 June), Eastern European gambling operator Fortuna Entertainment Group has detailed a strong revenue performance combined with KPI gains driven by the growth of sports betting and gaming divisions.

Updating the market, Fortuna would record a 40% group revenue increase to €720 million (H1 2016: €511 million), of which €650 million would be contributed by its sports betting and gaming activities.

The firm’s significant revenue gains, would see Fortuna governance declare a period gross-win of €100 million, up 20% on corresponding H1 2017’s €80 million. Fortuna governance detailed that its metric gains were a testament of its corporate strategy set against a tough comparative 2016 period featuring UEFA Euro 2016.

M&A and integration costs relating to the firm’s acquisitions of Hattrick Sports for €135 million (deal concluded May 2017) combined with the further outright purchase of Fortbet Romania assets for €47 million (March 2017) would impact Fortuna bottom-line.

Closing a busy H1 2017, Fortuna governance would declare a period group EBITDA of €7.6 million down 22% on H1 2016’s €9.6 million. The company would declare period net profits of €2.5 million

Updating investors, Fortuna governance detailed that it has moved to integrate new assets as the company seeks to become the outright leading multi-channel operator for Eastern European markets.

Per Widerström, CEO and Chairman of the Board, Fortuna Entertainment Group N.V. Commented on H1 2017 performance

“During the first half of the year, the volume of bets accepted by the Group continued to grow rapidly, reaching EUR 720.7m, up 40.9 percent compared to the same period the previous year. This strong growth was the result of solid performances in all traditional markets where Fortuna operates. The recently acquired Hattrick Sports Group Ltd., operating in Romania, Croatia and other countries, also contributed. Our operating profitability, as measured by EBITDA, was mainly influenced by the one-off costs associated with our expansion across the CEE region, coupled with integration into the Group of recently acquired business operations,”