Sportingbet on track with £5m pre-tax profit

Sportingbet became the world's second most profitable internet company yesterday after the online betting group moved into the black as it unveiled the acquisition of the UK-based Sporting Odds for up to £5.3m.

Sportingbet, which has grown turnover from zero to just under £1bn in three years, said it was on track to be profitable in all of its operating regions by the end of the year, including Europe.

Nigel Payne, the chief executive, said the acquisition of Sporting Odds, which gives the offshore gambling group its first onshore business, "cements our confidence in the UK market". The cash-and-loan-notes deal adds 65,000 customers to Sportingbet's 560,000 and will bolster its bottom line once the two businesses are integrated in three months time, he added.

"It's our very strong opinion that consolidation in the industry will accelerate at a pace because the costs of taking one bet are broadly the same as taking 1 million bets," said Mr Payne.

Although Sportingbet is the world's largest web-based betting company, it has less than 1 per cent of market share. Analysts said the group was a prime takeover candidate, especially following recent signs that the US government was warming to the idea of legalising online gambling.

Sportingbet reported a pre-tax profit for the year to end-March of £5m against a loss of £4.2m a year earlier and made operating profits of £14.2m against a loss of £2.1m. Turnover rose to £991.5m from £324.7m, strengthened by last July's purchase of Sportsbook of the US.