Unibet, founded in 1997, is one of the largest privately-owned gambling operators in the European market and provides services in 20 languages through www.unibet.com. Today Unibet Group plc published an interim report for January – June 2007 and described its second quarter as having been ‘unsatisfactory’. Saying that it had been the punters’ quarter the company contributed the lower margin to a large number of favourites winning in the major football leagues, ice hockey and tennis tournaments.

The sports book margin for the six month period was in line with expectations of 6.8%. Cost drivers during the second quarter were attributed to increased resources for marketing and live-betting, investments in productivity gains and payment solutions, and intense legal counselling over de-monopolisation in France and Sweden and the blocking by France of the Unibet cycling team in the Tour de France.

CEO Petter Nylander commented, “During the second quarter the EU Commission has clearly stated that the monopoly situation in two key countries Sweden and France is a breach of the fundamental principles of European law. Despite increased activity from the EU Commission, short-term the resistance remains on a national level. Amongst other things this has adversely affected the Unibet sponsored cycling team, Unibet.com, from being denied to participate in the Tour de France during the second quarter. Even if the difficulties in France continue, our view is that the French and the European gaming market will inevitably be de-monopolized.”

Gross Winnings Revenue amounted to £16.5 million (US$33 million) for the second quarter and £38.8 million (US$77.6 million) for the first half year. Profit after tax for the first six months increased to £9.9 million (US$19.8 million) largely driven by tax restructuring. At the end of the second quarter Unibet had over 221,000 active customers, but the introduction of online poker by the Swedish monopoly company has impacted on results. (E-08.15.07)

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