Central European sports betting and lottery operator Fortuna Entertainment Group saw profit fall in the first nine months of 2016 despite double-digit gains in betting turnover.
Figures released Monday show sports betting stakes rising 23.4% to €741.6m in the nine months ending September 30, while lottery sales rose 2.6% to €14.4m. The company says the gains were driven by strong online and mobile betting interest, while retail betting gains were confined to single-digits.
Betting gross win rose 15% to €113.8m while lottery win rose 5.1% to 6.4m. But sports betting earnings were down 8.9% to €15.3m and betting profits fell 30.6% to €9.5m due to increased betting taxes in Fortuna’s key Czech Republic market as well as the company’s “planned increase in operating costs to support future growth opportunities.”
On a market-by-market basis, the Czech Republic accounted for 56% of total betting stakes, down one point year-on-year, in part due to retail betting having “moderately declined.” Slovakia’s share of stakes improved two points to 32% despite similar retail shortcomings. Poland’s share of stakes slipped one point to 12% although its share of gross win held firm at 25% and retail betting bucked the trend by growing, albeit “just moderately.”