Unibet hit by profit slump despite record revenue in Q2

Gross winnings revenue totalled £80.5 million (€115.4 million/$125.3 million) in the period, a record quarterly figure that is up from the £75.6 million posted in the second quarter of last year.

However, profit before tax fell from £49 million to £15.2 million, with profit after tax also dropping from £48.1 million to £13.4 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) slumped from £53.7 million to £19 million, while net cash also fell from £23.7 million to £13.5 million.

As a result of Unibet’s showing in the second quarter, gross winnings revenue for the first half of 2015 stands at £156.6 million, up from £153.6 million at the same point last year.

However, much like the second quarter, results across other key financials were down. EBITDA in the first six months of 2015 totalled £33.4 million, a stark contrast to the £75.1 million posted last year.

Profit was down from £65.5 million to £26.5 million, while profit after tax also plummeted from £63.4 million to £23.4 million.

Despite these heavy losses, chief executive Henrik Tjärnström remained upbeat about Unibet’s performance, stating the firm’s recent acquisition of Stan James Online will help improve its fortunes.

“The success of the marketing investments made in previous quarters, has also driven organic growth of more than 21% in gross winnings revenue in constant currencies, despite tough comparables from the successful World Cup in 2014,” Tjärnström said.

“In addition to the major investment made over the past two years to launch Unibet in the UK market, I am confident that the acquisition of Stan James Online will significantly accelerate our development and profitability in the world's largest locally regulated market.”