Profits Fall For CentreBet

Online gaming and wagering provider CentreBet International Limited has released its results for its 2009 financial year showing a six percent rise in total revenues to $55.64 million.

The Australian firm announced last month that it expected to report total revenues for the twelve-month period of $52.02 million while those from its domestic online operations would rise 23 percent to $25.85 million, representing half of its total business.

Although revenues from its online operations came in at $27.64 million, its total operating expences increased by 13 percent to $44.9 million. CentreBet revealed that this was due to its spending $3.77 million more on marketing than last year alongside a rise of $1.17 million in betting costs. The Alexandria-based firm also reported an increase of $167,845 in other expenses.

“Recent momentum and underlying trends are pleasing, especially in light of the challenging economic conditions experienced during the year,” said Graham Kelly, Chairman for CentreBet.

“CentreBet is successfully capitalising on recent developments and deregulation in the Australian wagering industry with strong growth in revenue, particularly in online racing.

“We expect the overall industry to show strong growth over the medium-term and CentreBet is well positioned to maximise our share of that growth through customer-focused product offerings and targeted marketing investment.”

The increased spending saw CentreBet’s operating profit before tax fall 18 percent for the year to $7.21 million while its net profit decreased by 15 percent to $6.96 million.

“CentreBet is well placed to capitalise on industry opportunities in the year ahead with continued market share growth in Australian online revenues and a stabilised cost base thanks to the completion of our recent cost rationalisation process,” said Con Kafataris, Chief Executive Officer for CentreBet.

“We are also set to benefit from the full year’s contribution from the TAB’s fixed-odds management contract, which commenced on May 29, 2009.

“We are well placed to participate in the likely further consolidation of the industry as top-tier operators such as CentreBet continue to strengthen their market position and the Australian online wagering sector attracts increased attention from large off-shore operators looking for growth outside their home markets. We are also keeping a close eye on selective market opportunities in Europe.”