Tuesday 14 February
BETCORP REPORTS STRONG GROWTH IN 2005
• A$5.6m (US$ 4.3m) profit after tax
• Gaming revenues up 42%
• Major turnaround from A$10.9m (US$8m) loss in previous year
• On track for further substantial growth in 2006
Betcorp Limited (ASX:BCL) is pleased to announce its final audited results for the year ended 1 January 2006. In a transformational year, the Group recorded strong rises in revenues and profits.
This performance reflects the strategic repositioning of Betcorp under new management as a multi-product, online gaming operator offering sportsbetting, casino, poker and skill games to a broad base of recreational customers. Operationally, the business has been strengthened and the building blocks are now in place to deliver further substantial growth in 2006.
• Total gross margin up 42% to US$29.4m (2004: US$20.7m)
• Profit after tax of US$4.3m (2004 loss: US$8.0m)
• Operating expenses fell from 119.3% to 65.5% of gross margin
• Earnings per share of 2.34 US$ cents (2004 loss: 5.4 US$ cents)
• Net current assets of US$1.4m (2004 liabilities: US$2.3m)
• 44% growth in the number of active clients
• Casino revenues up by 86% to US$6.9m (2004: US$3.7m)
• Exponential growth of poker rake from US$0.2m in 2004 to US$3.6m in 2005
• Successful integration of Sinsational Intertainment Inc
• Group operating and integration infrastructure greatly enhanced
• AIM admission planned for mid March 2006
Commenting on the results, Colin Walker, Chief Executive Officer said:
“I am delighted by the turnaround we have achieved in 2005. The year finished with poker, casino and sportsbetting all at record levels of activity. Meanwhile, 2006 has started very well and has reversed the sports margin trends experienced in the fourth quarter of 2005.”
The Company’s full year 2005 annual report and audited financial statements can be found at the Company’s web site www.betcorp.com.au.
“We are announcing results just 44 days after the year end and believe that we are one of the first companies in Australia to be reporting full year audited results under IFRS. This was planned in order to accelerate both our AIM admission and our 2006 acquisition and integration strategy.” said Mr Walker.
No dividend is proposed for 2005.
The Board is pleased to announce the appointment of Mr Charles Moore ACA, Chief Financial Officer of the Group, as a Director with effect from 13 February 2006.
For further information please contact:
Chief Executive Officer
Chief Financial Officer
CPR Communications, Sydney
Tel: +61 2 8213 3082
College Hill Associates, London
Tel: + 44 20 7457 2020