Centrebet
Centrebet International Limited (ASX:CIL) is an Australian listed leading online wagering and gaming company with a client base of over 60,000 active customers. The company was formed from the merger in 2003 of two of the pioneers in the Australian online wagering and gaming market, Centrebet Pty Limited and SportOdds. Centrebet was the first agency to offer online betting in Australia in 1996. Rising from humble beginnings, Centrebet is now a leading international online betting and gaming company with a client base of over 300,000.
Centrebet.com offers sports and horse racing markets through its licensed Australian sports bookmaker, Centrebet NT Pty Ltd, and the United Kingdom bookmaker, Centrebet UK Limited. The site currently offer up to 4,000 international sports and horse racing markets per week, plus a growing list of state of the art gaming products.
Centrebet's customers are largely domiciled in Australia with 54% of turnover being derived in this region. However, Centrebet also have exposure to the Nordic region 29% while a combined UK and Europe make up 11% of turnover.
Centrebet to benefit from removal of advertising restrictions
Victorian Deputy Premier and Minister for Racing, Mr Rob Hulls and New South Wales Minister for Gaming and Racing, Mr Kevin Greene, both states will soon remove advertising restrictions that apply to interstate bookmakers and wagering service providers under proposed legislative changes.
The governments have agreed to move quickly to introduce legislation to repeal laws that currently prevent bookmakers promoting their services across State borders. In announcing the restrictions would be abolished, both governments pointed to the High Court decision made earlier this year that ruled, among other things, that restrictions on advertising constituted a potential restraint of interstate trade.
Centrebet achieved 14% turnover growth in Australia, with online racing turnover growing at 20%.
This was despite the advertising restrictions. The formal removal of advertising restrictions in both Victoria and NSW provides Centrebet with increased opportunity to continue its strong growth and increase market share in the Australian market to boost Centrebet's client base.
Strong Earnings in 2008 and forecasts growth for 2009
Centrebet posted strong earnings in full year 2008. Highlights were as follows:
• EBITDA growth of 20% in FY08 to $17.4m with improved EBITDA margins.
• 17% growth in FY08 NPAT to $13.0m, achieving earnings guidance.
• Final dividend of 6.0 cents per share, 75% franked. Total dividends from FY08 of 10.5 cents per share resulting in 13% growth in total dividends.
• Centrebet is well positioned to capitalise on the pending deregulation of the Australian wagering market, experiencing 14% growth in Australian turnover.
• Delivered 76% growth in Casino revenue which has driven strong European performance, with revenue growth of 22%.
• The Board projects double digit NPAT growth for FY09 of between 10% to 15%, providing FY09 NPAT guidance range of $14.3m to $15.0m.