Sportingbet, GBP 252.4 Million Business Loss
Published: Thursday, November 30, 2006 Online-Casinos.com
GBP 252.4 MILLION THE COST OF U.S. BUSINESS LOSS TO SPORTINGBET
But resilient UK group reports European business up, and a healthy cash stash
The cost of losing the U.S. online gambling business immediately preceding the enactment of the Unlawful Internet Gambling Enforcement Act in October this year was quantified today (Thursday) when Sportingbet plc reported its quarterlies to October 31 2006.
The Internet gaming group revealed it was taking a GBP 252.4 million ($493 million) exceptional charge after stopping its U.S. operations, leading to a first-quarter loss of 241.4 million. Sportingbet sold its U.S.-focused operations for $1 (GBP 0.51p) in October, hours before the United States effectively banned online gambling.
The exceptional charge included a GBP 132.7 million write down of investments, a GBP 106.3 million "....loss on disposal of investment" and a restructuring charge of GBP 13.4 million.
On the positive side, the highly successful group reported strong growth in gross profit for its continuing operations, with Europe up 55 percent and Australia up 33 percent. Gross profit from the continuing operations rose by 48 percent to GBP 31.7 million in the three months to October 31.
And Sportingbet said it had GBP 52 million cash on its balance sheet at the end of the quarter.
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