Earlier today, Unibet released a report about company’s financial performance during Q1 of the current fiscal year. According to the numbers posted, the profits declined by 32% as compared to last year’s results.
Company representatives were reached for a comment and they said the drop could be attributed to the increased expenses for marketing purposes as well as the currency variations in gross winnings revenue.
The results released cover the period January – March 31st. During the registered period, a decline in EBITDA was posted. It was estimated at £14.4 million, while a year earlier the numbers reported were £21.3 million.
As for Unibet’s gross winning revenue, the decrease was £400,000 YOY. The GWR in Q1 of 2015 was £76.1 million, while it was £76.5 million in the first quarter of 2014. The decline in profits was also considerable. Company profits in Q1 shrank 18% YOY to reach £18.9 million.
Despite the overall decrease, company’s Sportsbook compensated for the losses as an increase of 8% in gross winnings revenue was reported in comparison to the results in Q1 of 2014. During Q1 of 2015, it reached £35.5 million.
The decline registered with sports betting activities was 1% and totaled £34.9 million. A small decline was posted in company’s poker activities as the gross winnings revenue dropped to reach £2.2 million.
Henrik Tjärnström, Unibet CEO, commented on company’s financial performance during the registered period and said that he was overall glad with its accomplishments. He did not miss to emphasize the impact the fluctuations on the currency exchange rates had on Unibet’s financial performance.
Mr. Tjärnström said that during the first quarter of the fiscal year, the organic growth developed and against all odds, the gross winnings revenue posted an increase of 15% in constant currency.
He went on to say that the accomplishments of Unibet during the registered period point out to company’s aim to further consolidate its positions on the markets.
Unibet CEO said that the mobile gaming segment is also rapidly developing and now it accounts for almost half of the gross winnings revenue. In conclusion, he noted that the efforts of Unibet officials towards re-regulation are paying off and they will stay focused on that direction. Speaking of positive results, the regulated markets accounted for 28% of the gross revenue in Q1 of 2015.
Despite the aforementioned unstable revenue, Unibet had a relatively successful Q1 of 2015 as it completed the acquisition of Bonza Gaming, which is now part of Unibet’s portfolio.
