M&A fever helps Unibet to record takings

M&A fever helps Unibet to record takings

Wednesday, April 27, 2016 Totally Gaming
Henrik Tjärnström said the company out-performed the market during the period

Unibet’s share price was up by around five per cent today (Wednesday) after the gaming operator revealed the positive impact of its acquisitions during 2015, in announcing record revenues and a significant rise in profits during the first quarter of 2016.

In a trading update for the three months to March 31, Unibet said gross winnings were up 61 per cent year-on-year to £122.4m (€157.9m/$178.5m), while earnings before interest, tax, depreciation and amortisation (EBITDA) also jumped 80 per cent to £26.7m.

Profit before tax almost doubled from £11.3m to £22.5m, while profit after tax jumped by 100 per cent from £10m to £20m.

While Unibet’s figures were boosted by the addition of acquisitions Stan James Online and iGame Group since the first quarter of 2015, the company said that continuing gross winnings were up 20 per cent.

Henrik Tjärnström, the company’s chief executive, said: “Unibet’s growth continued to develop strongly in the first quarter, with an increase of gross winnings revenue in GBP of 61 per cent, and 58 per cent constant currency, compared to the first quarter last year.

“This is again significantly higher growth than the overall market and indicates that we are continuing to take market share across the board.

“Gross winnings revenue in the Nordic region grew by 58 per cent, while Western Europe grew by 63 per cent; in both regions the organic growth in constant currency was approximately 40 per cent.

“In the period up to April 24, 2016, average daily gross winnings revenue has increased by approximately 50 per cent compared to the same period in 2015, despite lower sports betting margins.”

TotallyGaming.com says: “Unibet is reaping the rewards of its acquisition strategy, with Stan James Online and iGame Group contributing £12.8m in gross winnings revenue and £3.1m in normalised EBITDA.”

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