European woes hit Sportingbet

Published on 31/05/2012 00:00

ONLINE gaming firm Sportingbet’s shares fell 1.7 per cent yesterday after it revealed tough markets in Greece and Spain helped trigger a one-third slide in underlying third-quarter profit.

“The group will continue to adjust the European cost base to mitigate both recessionary forces and the impact of new taxes,” Sportingbet said, its shares closing off 0.5p at 28.75p.

The company has cut its fixed cost base by £15 million since selling its Turkish-language business in November. Greece and Spain are Sportingbet’s two largest markets in Europe, but its Spanish business has been suspended since 27 March because of a legal injunction.

The group’s earnings came in at £10.8m compared to £16.1m a year ago, while net gaming revenue fell to £43.4m from £54.7m.