The Melbourne-based Betcorp Limited is seeing increasing profit margins since its acquisition of Sinsational Intertainment, the online sports betting and casino operator licensed in Antigua, which gave Betcorp access to Sinsational’s automatic price update software. The amalgamation of both companies’ sports books has also led to operational cost cutting through staffing reduction and relocation of offices and produced savings from greater purchasing power, expected to boost operating profits in the second half.

Betcorp revenue was up 37% for the first half year to 3 July 2005, to US$12.6 million, giving a profit of US$1.9 million after making a loss of US$2 million in the previous corresponding period. The company’s licensed sports betting operations are conducted through World Wide Telesports (WWTS) based in Antigua and mainly servicing the US market. WWTS was acquired in 2003, making Betcorp at the time the third largest listed wagering company by turnover in Australia.

The announcement last Thursday that GameAccount had been chosen to power Betcorp’s flagship online sportsbooks BetWWTS.com and CyberSportsBook.com will give customers the chance to win a share of two million dollars of monthly winnings, including the world’s biggest skill based tournament SuperCash. The introduction of popular skill games such as Backgammon, Gin Rummy and Hi-Lo Solitaire is expected to attract a wider demographic to their sports books, as well as appealing to their core recreational and serious gamblers.

A re-positioning strategy over the past year, and the fact that the London Stock Exchange has become the leading market for online gaming companies and attracts institutional investment, has led Betcorp to consider a London listing in future expansion plans. KBC Peel Hunt, a leading British financial institution and Nominated Advisor to over 70 AIM listed companies, has been appointed to assist in the assessment process. Substantial positive progress so far this year is expected to continue, boosting the company’s gross margin in sports book activity and closing the gap with competitors. The company is presently the fourth largest wagering company by turnover in Australia. (E-08.29.05)

© Copyright 2005 CasinoCompendium



>>> return to archives
>>> return to frontpage