Sports betting unable to halt SNAI’s revenue decline in H1

1st August 2013 1:23 pm GMT

Italian gaming operator SNAI has reported a 4 per cent drop in total revenues to €253.0m for the first half of 2013, despite posting strong growth from the company’s retail and online sports betting offering.

Sports betting wagers fell by 9 per cent to €570.3m compared to the same period last year, of which €75.8m was generated from SNAI’s online channel, up 23 per cent year-on-year.

Net revenues from sports betting increased by 22 per cent to €79.6mfor the six month period, following a reduction in payouts to 77.2 per cent, down from 82.4 per cent a year ago.

Total wagers from horse race betting fell 14 per cent to €244.9m as a result of the continuing economic crisis which has affected the whole Italian horse racing sector, with revenues down 18 per cent year-on-year to €15.5m.

Gaming machines recorded a 7 per cent rise in amounts wagered to €1,457.2m, generating revenues of €128.7m following growth in the company’s video lottery terminal (VLT) business. This was offset however by a decline from SNAI’s AWP gaming machines which were impacted by the loss of an important client in March as well as a rise in tax.

Online gaming contributed a further €13.3m in revenues, up 17 per cent compared to the same period last year, due mainly to the introduction of new online casino and slot games.

H1 2013 Results

Euros (€) H1 2012H1 2013
Revenues from Sales and Services 263.0m252.3m
Other Revenues and Proceeds 0.8m0.7m
Raw Materials and Consumables Used 0.7m0.9m
Costs for Services and Use of Third Party Assets 196.2m169.5m
Personnel Expenses 18.0m19.1m
Other Operating Expenses 15.1m19.7m
EBITDA 34.3m44.2m
EBIT 1.3m18.1
Profit/(Loss) for Period (11.0m)(4.3m)
Earnings/(Loss) Per Share (0.04)(0.09)

Cost for services and the use of third party assets fell by 14 per cent to 4169.5m, while personnel costs increased by 7 per cent to €19.1m. Other operating costs rose 31 per cent to €19.7m.

SNAI saw EBITDA climb 29 per cent to €44.2m although after amortization and depreciation charges of 425.9m and interest paid of €19.3m, the company generated a loss for the period of €4.3m compared to a loss of €11.0m last year.

As at June 30th the company held cash and cash equivalents of €30.2m compared to €38.2m a year ago.

Shares in SNAI S.p.A (Co. Data) (MIL:SNA) are currently trading down 2.96 per cent at €0.8045 per share in Milan following the announcement Wednesday.

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