unibet groupUnibet Group Plc, the Nordic online casino gaming company and parent company of reputed brands such as Unibet, iGame and Stan James has released its unaudited financial results for the first quarter of 2016, reporting impressive growth in its revenue.

The group has posted gross winnings revenue of £122.4 million which is the highest ever recorded by the company. The revenue is an increase of 61 percent over same the period last year, when it recorded £76.1 as revenue but witnessed only a 10 percent increase over the previous quarter.

The group’s financial statements reveal that every business vertical within the company has increased its revenue this quarter. Gross winnings revenue in the segment of sports wagering went up by 52 percent reaching £54.1 million in the first quarter of 2016 while revenue for casino and games segment increased by an astounding 76 percent, going from £34.9 million recorded in the first quarter of 2015 to £61.3 million in same period in 2016.

These two segments comprise 94 percent of revenue for the group, with 50 percent coming in from casino and games and 44 percent from sports wagering. The smaller poker vertical saw its gross winnings revenue increase by 45 percent going up to £3.2 million in the first quarter of 2016.

Acquisitions done by Unibet in the past year, which include iGames and Stan James’ online operations is one of the major reasons for these impressive growth rates. The company’s CEO however said that the increase its market share, was another key reason for its growth.

In a statement Henrik Tjärnstöm, Unibet CEO said,

This is significantly higher growth than the overall market, and indicates that we are continuing to take market share across the board. Organic growth excluding last year’s acquisitions and in constant currency was 41 percent compared to the first quarter last year.

The company’s bottom line also reported a sharp upsurge with its Earnings Before Interest, Depreciation, and Amortization (EBITDA) increasing by a whopping 80 percent and its profit doubling after taxes. Unibet has reported EBITDA of £27.6 million in the first quarter of 2016 while its profit after tax was £20.0 million in the same time period.

According to Tjärnstöm, scalability and cost control enabled the company to improve its EBITDA while the doubling of its profit after tax indicated that its business model was being successfully tweaked to absorb betting duties levied in the different markets.

Categories: Casino News

Posted on: 2nd May 2016 by: Gary Beachley