Centrebet forecasts strong growth in online gambling

In 2008/09, Centrebet delivered a net profit of us$ 8.32 million. On an adjusted basis, net profit was us$ 11 million. Kelly said that in relation to trading in the current financial year so far, Australian online turnover had grown by more than 26 % and active client growth was up by more than 22 %.

European revenues had fallen by six per cent on a same-currency basis, compared to the prior corresponding period, and by 19 % when converted into Australian dollars. Centrebet's on-course racing revenues were negative. Kelly said racing as an industry continued to decline in total wagering market share.

The TAB's fixed-odds management contract was performing strongly and was on target to generate more than us$ 1.7 million in earnings before interest, tax, depreciation and amortisation (EBITDA) for the 2010 full year.

The global wagering industry experienced below-historical win rates during the first quarter of 2010: locally due to results in Australian racing, and internationally due to English Premier League results. Globally, win rates for the second quarter had returned to above-historical win rates.

Centrebet's on-line wagering win rate for the year so far - for Australia and Europe - was about 5.5 %. Kelly said the online wagering market was growing strongly in Australia, and Centrebet continued to increase its market share. In 2010, Centrebet would continue to build its profile with key AFL and NRL football brands.

The company said significant live betting enhancements were also planned for 2010, aimed mostly at improving Centrebet's European product offering. Centrebet would also focus on launching new casino products across both the instant and download casinos.

Casino revenues rose 10 % in 2009 and would continue to be the main focus of gaming in the future. Kelly said Centrebet saw numerous consolidation opportunities either as an acquirer or as a target. He said on-line corporate bookmakers such as Centrebet were expected to continue to take market share from parimutuel (totalisator) operators and on-course bookmakers.

Parimutuel wagering is where all bets from a number of customers from one or more betting agencies are pooled. On-line corporate bookmakers were expected to have greater than 40 per cent market share by 2014.

"Centrebet management's view is that the company will continue to grow in excess of market growth rates, given its strong management team, superior product range and continued investment in marketing and product development," Kelly said. "Beyond those key market trends, there are also some important regulatory developments that should further level the playing field on which we compete with the large TABs."

Centrebet shares were 0.5 cents lower at us$ 1.225 at 1518 AEDT on Tuesday.