|BETonSPORTs, a US-facing online gaming company, has announced its results for the year ended 6 February 2005.|
Highlights include the successful flotation on AIM raising $44m (net) in July 2004, followed by the acquisition of Millennium Group and the closure of certain advertising avenues by September 2004.
October 2004 saw the soft launch of BoS Poker to BoS customers while November proved BETonSPORTS’ busiest month with and unprecedented run of favourites winning in NFL hits margin bringing about a revision of their profits forecast. December 2004 saw the soft launch of poker to Millennium customers and the launch of a sportsbook in Guatemala.
2005 started well with a margin recovery in NFL and the launch of a sportsbook in Mexico. This month saw the acquisition of Easybet extends BETonSPORTs geographical coverage to Asia
Turnover fell from $1,252m in 2004 to 1,104 in 2005 and the gross margin shrank from $90.2 to $72.5m. Marketing costs fell significantly from $15.8m to $10.6m but net profit before tax fell a hefty$3.7m from $27m to $13.3m.
BETonSPORTs Chairman Clive A Parritt commented: “The issues that faced the entire USA sports betting industry in November 2004 (NFL results against the long term trend and unexpected advertising restrictions) provided a significant challenge for the management team. However, acting immediately we undertook a stringent review of procedures, people and marketing avenues. We are confident that these management actions will make BETonSPORTS a stronger company going forward.”