At Sportingbet There Is A Change Of Guard

This week Sportingbet, the publicly listed Internet gambling group, has recently produced some impressive quarterly financial results in addition to presenting news of a change at the top.

With the announcement that in October this year finance chief Andrew McIver would become Group Chief Executive, the company Sportingbet also made known its succession plans. These plans include their current top man, Nigel Payne moving to an executive director slot which includes responsibility for lobbying for industry regulation in Europe as well as the US, and responsibility for aiding the Board and Andrew McIver in researching and executing business expansion opportunities.

The projected change coincides with the date upon which Sportingbet will make known its results for the 12 months period ended 31st July, 2006.

Finance chief, McIver has said while commenting on the plans, that he is delighted to have the chance to lead one of the principal and most exciting companies in this industry. He says that he relishes the challenge.

McIver says that five years ago from Nigel, he took over the role of Group Finance Director and that he is thrilled that he will now be following him again, only this time as Chief Executive. He says that over the past five years, he and Nigel have worked at Sportingbet intimately in concert in laying down a long-term policy for the company and that he sees his main task as continuing their concentration on brand development and their core “supermarket” philosophy. This approach has proven to be a successful formula, through both targeted acquisitions and organic growth, and McIver says that he intends to press the business forward on this basis.

McIver says that during the next few years, he believes that the online gambling industry will more and more stress the centrality of the customer’s experience. Whether it is through focused product development, website personalization, enhanced customer service, and/or innovative and targeted marketing that the consumer’s experience will become an significant differentiator of businesses in this sector. McIver says that his aim is to assure that Sportingbet will continue to lead the way in the area of online gaming.

Payne said he was pleased with the arrangements and would be delighted to continue as an Executive Director and help Sportingbet forward. "Sportingbet has a real depth of management talent that means I can now step down from the day to day responsibilities and concentrate on certain crucial areas such as regulatory development and business expansion.

"I am extremely proud to have led one of the most successful companies in the industry during its formative years, and that it has now become a significantly profitable international group."

Top man Payne, a longtime advocate of regulation for online gambling as well as being a high-profile executive, has achieved an imposing track record for the group, and the most recent financial results emphasize his success in this area.

During the three months that ended April 30, 2006 the following figures most clearly speak for themselves:

* Gross profit margin increased by 58 percent, up to GBP 84.4 million

* Operating profits increased by 43 percent, up to GBP 28.8 percent

* Before-tax profits increased by 55 percent, up to GBP 21.2 million

* Cash that has been generated by operating activities, up to  GBP 29.5 million

* Average daily Paradise Poker revenues are up 90 percent to GBP 575 339

* Newly registered customers have increased by 86 percent and are up to to 500,000, while new real money players have increased by 58 percent and are up to 170,580, demonstrating an average acquisition outlay of GBP 142

* Sports and gaming bets increased by 39 percent, up to GBP 149.3 million

The report indicates an interesting cross-over event between clients with game preferences and carrying betting. 22,551 (16.9 percent) of active U.S. sportsbook customers played poker as well, generating an average of $54,324 in revenues each day, and 22,685 (13.8 percent) of active U.S. poker players generating $2.6 million by betting on sports and at casinos.
Group chairman, Peter Dicks, says that Payne has accomplished a wonderful job in turning Sportingbet as a small player into a global operator of considerable scale, in a mostly immature market.

Dick is reported as saying that the requirements of the business are progressively more demanding and involve a broader and strengthened team. He says that the Board is consequently pleased to announce these succession plans so as to create an expanded management team. He reports that the Board is delighted that Nigel has decided to stay with Sportingbet and to take on a role that is so important to the company’s long-term success.

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