Central and Eastern European online betting operator Fortuna Entertainment suffered a year-on-year drop in revenue during the first quarter of 2014 despite having experienced a significant increase in the amounts staked by customers.
The company posted revenue of €28.5 million ($39.7 million) for the first quarter of this year, a decrease of 0.9% on the amount Fortuna achieved in the corresponding period in 2013.
Fortuna also suffered heavy losses in earnings before interest, tax, depreciation and amortisation, which fell by 17% to €9.4 million.
Despite the disappointing figures, Fortuna did experience an increase in amounts staked, which grew 17.5% on a year-on-year basis to €165.9 million in the period.
The ‘amounts staked’ figure was also boosted by a jump in sports betting activity in the quarter, which increased by 18.2% to €162 million.
Fortuna also saw gross win during the first quarter of 2014 total €34.1 million, an increase of 1.8% on the previous year.
Although growth in sports betting gross win also helped achieve this total, Fortuna additionally cited a 19.2% increase in gross win from online betting as another reason for this rise.
Radim Haluza, chief executive officer of Fortuna, said that although sports betting showed growth in the first quarter, the company was hit by unfavourable sports results in the period, which in turn negatively impacted its results.
“In the first quarter of 2014, the company continued in a strong growth of amounts staked and we accepted €165.9 million of bets, which is 17.5% more than last year,” Haluza said.
“The amounts staked grew double digits in all our key markets, primarily driven by on-line betting expansion.
“Lower EBITDA and slower gross win growth compared to the first quarter of the last year resulted from unfavourable sporting results in January, primarily football results in the first two January weeks.
“We believe that our full year guidance will be met.”
source : www.igamingbusiness.com