SBC News Voice of the Sports Betting Industry
Eastern European gambling operator Fortuna Entertainment has recorded a 47% decline in net profits to €4.8 million (H1 2014 – €8.9 million).
The operator had been negatively impacted by a steep decline in its group operating margins to 10.4% (H1-2014 18.5%) due to being hit by a set of unfavourable sports results in March.
A tough opening six months of 2015, saw group revenues decline 5% to €46 million (H1 2014) as wagering in its key market of Czech Republic dropped. Fortuna had to further contend with the cancelation of online handling fees in Slovakia.
The operator could not sustain its positive 2014 sports betting momentum gained from the 2014 FIFA World Cup, as the vertical saw a 6% decline to €42 million (H1 2014 -€45.5 million).
Although Fortuna would record group wagering up 23% to €411 million, the operator could not sustain its operating performance which would be deeply impacted by a rise in core market taxes combined with new operational costs.
Total operating costs in the first half of 2015 came to €37.1 million, 9.7% more than in the same period of 2014, Fortuna management noted that it had undertaken a number of staff hires and development costs with the aim of helping future corporate growth.
Per Widerstrom CEO of Fortuna Entertainment commented on company performance:
“Performance was in line with our expectations, our outlook for the whole year remains unchanged.
“The results achieved were driven by strong demand for on-line sports betting, supported among others by our extended live streaming offer and the cancellation of on-line handling fee in Slovakia. The year-on-year comparison was however affected by the absence of the major sport events this year, particularly by the World Cup in Brazil last year which were driving strong Amounts Staked at a solid margin last year.”
