Fortuna hurt by Czech taxes

Fortuna offers fixed-odds betting with outlets across Central and Eastern Europe and revealed that nine-month sportsbetting revenues rose by 0.2 % year-on-year to 60.56 million euros while those from its lottery activities improved by 254.4 % when compared with the same period in 2011 to 7.07 million euros.

However, earnings before interest, tax, depreciation and amortisation for the nine months to the end of September dropped 6.2 percent year-on-year to 13.3 million euros, Fortuna stated, due to higher betting taxes in the year in the Czech Republic in addition to expenses relating to ‘the lottery project’. The company declared that these additional duties also saw earnings before interest, tax, depreciation and amortisation from sportsbetting for the period decline by eight percent when compared with the same period last year to 16.8 million euros. But, some of this shortfall was taken up by its lottery operations, which posted a 14.2 percent boost in earnings before interest, tax, depreciation and amortisation although still in the red to the tune of 3.48 million euros.

“The double-digit growth in amounts staked on the group level and the high single-digit growth reported by the sportsbetting division were mainly driven by a successful expansion of online betting in all core markets including our new regulated online business in Poland,” said Wilf Walsh, Chairman for Fortuna.

“We are reporting growth rates that are in line with our long-term targets for sportsbetting. On top of that, we have completed a comprehensive review of our lottery business in order to minimise earnings before interest, tax, depreciation and amortisation impact and to reach break-even during the first half of next year."