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Unibet Group plc Year end report January - December 2007 (unaudited)

Wed, 20 Feb, 2008 07:30 CET

• Gross Winnings Revenue amounted to GBP 24.5 (19.4) million for the fourth quarter of 2007 and GBP 81.4 (71.8) million for the full year 2007. Gross Winnings Revenue and costs have been restated to include the effects of all gaming related transactions in accordance with recent IFRIC and industry standard with no impact on reported profits.

• Profit before tax for the fourth quarter of 2007 amounted to GBP 2.7 (7.4) million. Profit before tax for full year 2007 amounted to GBP 20.0 (28.5) million.

• Profit after tax for the fourth quarter of 2007 amounted to GBP 2.3 (23.1) million. Profit after tax for the full year 2007 amounted to GBP18.7 (37.9) million.

• Earnings per share were GBP 0.083 (0.818) for the fourth quarter of 2007 and GBP 0.665 (1.344) for the full year 2007.

• Maria Holdings was acquired for SEK 705 million (GBP 54 million). To finance the acquisition, Unibet issued a bond totalling a nominal value of EUR 100 million (GBP 70 million).

• Number of active customers at the end of the quarter was 309,431 (218,770).

• The Board of Directors proposes a dividend of GBP 0.50 (0.41) per share/SDR, which is approximately SEK 6.30 (5.50) per share/SDR.

• AGM to be held on 29 April, 2008, in Stockholm.


“Unsatisfactory Earnings”

“Exceptional charges, mainly in respect of Unibet’s exit from cycling, together with increased marketing costs pressured quarterly earnings to unsatisfactory levels. The termination of the cycling sponsorship due to the denial of participation in major Pro-Tour Cycling races has resulted in costs of GBP 2.1 million in Q4. In addition, management has decided to take a full year provision totalling GBP 0.5 million for the previous, now vacated, London office lease given the adverse real estate market. The increase in marketing costs is mainly a result of further usage of revenue share and affiliate programs to drive higher customer growth.”

“The underlying business shows improving growth and strong customer intake. For all regions we see healthy growth for Sportsbook and Non-Sportsbook products with a 30% total increase before bonus cost versus fourth quarter 2006 and 15% annually. The Sportsbook margin in the quarter was 7.5% before bonus cost driven by favourable sports results and improved Live betting margins. In Sweden poker is back to growth in the quarter versus last year and had close to 10% growth versus third quarter 2007. Furthermore, the active customer base has continued to increase for both Unibet and Maria Holdings with a total increase of 15% compared with previous quarter.”

“The Maria Holdings integration is proceeding according to plan and the Bingo and Poker businesses continue on a strong growth path. We are positive about the strength of the Maria Bingo business model and are in the process of introducing Maria Bingo in our European footprint.”

“We started 2008 with a significantly upgraded website, which already shows proof of improved productivity and enhanced customer experience on a solid, scalable platform. We have a stronger structural capital, an extended product offering e.g. Maria Bingo, and see growth across all regions and products. Our focus now is to capitalise on this position and deliver strong cash flows while continuing growth”, says Petter Nylander, CEO of Unibet.

Today, Wednesday 20 February 2008, Unibet’s CEO Petter Nylander and CFO and deputy CEO Ragnar Hellenius will host a presentation in English at FinancialHearings, Operaterrassen in Stockholm at 9.00 CET.

Please go to www.financialhearings.com to sign in.
For those who would like to participate in the telephone conference in connection with the presentation, the telephone number is +44 845 634 0041. Confirmation Code: 5214284.
Please call in, well in advance and register.

The presentation is also web cast live on www.unibetgroupplc.com.

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