Fortuna raises the bets, however the profits fall by half

Sports Betting

In the first half of this year, the Fortuna betting group increased overall bets by 40.9 percent to 720.7 million euros year-on-year. EBITDA, however, dropped 22 percent to 7.6 million euros and net profit by 53.1 percent to 2.5 million euros. The company’s earnings decrease primarily attributed to the one-off costs of expanding and integrating and refinancing external debt.

During the first half of this year, the company continued its dramatic growth in bets, which grew by 40.9 percent to 720.7 million euros. Businesses in all of the traditional countries where Fortuna is doing business, and partly also newly-hatched Hattrick companies operating in Romania, Croatia and other countries, have been involved in such a strong upturn . Operating profit EBITDA is mainly influenced by one-off costs associated with Central European expansion and integration of new companies into the group, “said Per Widerström, CEO and Chairman of Fortuna Entertainment Group NV.

Gross earnings in the first six months rose by almost a quarter to EUR 100.2 million (CZK 2.6 billion). Also in this case, the company’s growth is driven by the development of online betting, which is typical of its lower margin. Operating profit EBITDA (before interest, taxes and depreciation) decreased by 22 percent to EUR 7.6 million (CZK 198 million). Without one-off items, EBIDTA would grow by about eight percent year-on-year, Fortuna said.

Analysts expected a decline in net profit by about a quarter. However, they pointed out that an exact estimate can not be made precisely because of some one-off items.

The acquisition of Hattrick Sports Group’s Irish company was completed by Fortuna in the second half of May. The cost was 85 million euros ($ 2.3 billion), and Fortuna became the market leader in Romania due to the purchase.