Unibet full-year revenues soar 13%
Strong growth in Western Europe and recent acquisitions help boost numbers but increased costs hit profits
Strong double-digit growth from Unibet’s Western European business and revenues generated by recent bolt-on acquisitions helped drive a 13% year-on-year rise in 2015 gross winnings revenues (GWR), the operator reported this morning.
Revenues for the 12 months ended 31 December 2015 stood at ?354.1m, up from ?312m compared to the previous year, following a 24% year-on-year rise in Western Europe and growth across all other markets. Stripping out acquisitions, which contributed ?13m, revenues were up 9% on the previous year.
However, despite a strong uptick in revenues and active customers, EBITDA for the 12-month period fell from ?115.7m in 2014 to ?77m last year following a rise in betting duties and other costs of sales. On an underlying EBITDA basis, the operator recorded a modest 4% year-on-year rise over the same period.
Last year Unibet acquired UK-facing bookmaker Stan James Online, as well as Nordic-facing iGame Group, additions which CEO Henrik Tj?rnstr?m said had helped reshape the business.
“The acquisitions have also accelerated our transformation of our business and locally-regulated revenues are now 34.3% of gross winnings revenue compared with 28.4% in the third quarter of 2015,” he said.
“UK, the world’s largest locally-regulated gambling market, is now our largest locally-regulated market,” Tj?rnstr?m added.
According to figures released this morning, its recently acquired Stan James Online and iGame Group assets contributed ?13m in GWR in Q4, but if they had been part of the group for the full year would have added ?46m.
With GWR of ?160.3m, the Nordics contributed 45% of the total, down slightly from 48% in 2014, while revenues from Central, Eastern and Southern Europe were up 7% year-on-year.
Although no direct figures for Unibet’s Australia-facing business were given, GWR for ‘other markets’ – all of those outside of Europe – was also up 10% to ?10.7m.
The Stockholm-listed operator’s sports betting business enjoyed the strongest growth across the firm with GWR increasing by 21% to ?161.2m, with Western Europe seeing a 25% increase.
Casino and games remained the largest contributor with GGR of ?171.6m, an increase of 15%, however, Unibet’s poker business failed to overturn its decline with revenues falling 10% year-on-year.