SportingBet sold its US operations just hours before the U.S. Congress passed the Unlawful Internet Gambling Enforcement Act and has suffered financial setbacks as a result.  Those setbacks were quantified in a release of Sportingbet’s quarterlies to October 31st.  According to the quarterly report, the gambling group took a GBP 252.4 million ($483 million) exceptional charge after it was forced to stop its U.S. operations.  This resulted in a first quarter loss of 241.4 million.

The exceptional charge included a GBP 132.7 million write down of investments, a GBP 106.3 million "loss on disposal of investment", and a restructuring charge of GBP 13.4 million.

In spite of the financial blow caused by the loss of its US operations, Sportinbet has managed to hold its own, reporting strong growth in the gross profit of its remaining operations.  European operations were up by 55 percent and Australian operations increased by 33 percent, according to the company.  In three months, gross profit for the company’s continuing operations rose by 48 percent to reach GBP 31.7 million.  The company also showed GBP 52 million cash on its balance sheet at the end of the quarter.

Posted on: December 9, 2006

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