BUSINESS

Unibet numbers way up in 2014 after Kambi Sports Solutions sale

TAGs: Kambi Sport Solutions, Unibet

unibet-kambi-sports-solutionsOnline gambling operator Unibet enjoyed healthy gains in 2014, although the numbers were artificially boosted by the sale in May of its Kambi Sports Solutions division. Full-year revenue rose 16% to £312m while earnings and profit after tax doubled to £115.7m and £93.4m respectively, although £35.3m of this came via its Kambi sale.

For the three months ending Dec. 31, revenue was up a more modest 5% to £78m, while earnings fell 6% to £18.9m and profit fell 8% to £13.5m. Unibet cited below average sports betting margins and unfavorable currency exchange rates for the shortfall while insisting revenue would have risen 16% had average currency exchange rates not gone south.

Sports betting accounted for 39% of group revenue in Q4, with revenue rising 7% from Q4 2013. Casino and games garnered a 52% share (revenue +12%). Q4 saw Unibet’s poker product deal its hundred millionth hand since it relaunched as a network-independent standalone site, but the vertical’s revenue fell 28%, representing just 2% of the overall pie.

Nordic markets accounted for 49% of Q4 revenue, with Western Europe contributing 40%, Central, Eastern and Southern Europe adding 8% and ‘Other’ (which includes Australia) responsible for the remaining 3%. The Nordics’ share was basically flat, while Western Europe was up 18%, the rest of Europe fell 3% and Other fell 21%.

Live-betting’s share of total sports betting stakes rose from 43.5% in Q4 2013 to 47.5% last year, while pre-game stakes fell to 52.5%. Overall stakes rose 18% year-on-year to £459.6m. Mobile wagering accounted for 43% of sports betting revenue and Unibet’s active customer ranks grew 10% to 570k in Q4.

Unibet CEO Henrik Tjärnström said trading in the first five weeks of 2015 had seen average daily gross winnings revenue improve by 5% over the same period last year. The company has also assumed full ownership of real-money social casino operator Bonza Gaming after taking a 45% stake in March 2013.

KAMBI ENJOYING LIFE ON ITS OWN
Meanwhile, Unibet’s stepchild Kambi Sports Solutions reported a 70% revenue gain in its first full-year results as a standalone unit. Kambi says punters went on a hot streak in Q4 but revenue in the 12 months ending Dec. 31 rose 70% to €36m. Even better, earnings hit €2.2m compared to a €19.9m loss in FY 2013. Kambi CEO Kristian Nylén said the results provided a “solid base for the company’s future”. Kambi clients include 888 Holdings, 32Red and its former mothership Unibet.

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