Unibet profits pinched - Online Bingo News

Tough news for investors in Unibet, the European gambling group, which has announced its first profit fall in three years.

Unibet said its quarterly profits fell nearly 60% from £5.6 million to £1.7 million.  The reported figures represent a hammering for the company and shows that gross winning revenues are down to £16.5 million as compared to £18.4 million over the same time last year.

Unibet’s CEO Petter Nylander claims margins for the company have suffered due to many favourites actually winning in the areas of football, ice hockey and tennis tournaments.

Nylander said: "Our expectation is that this situation will stabilise during second half of 2007. Management has during the quarter initiated a number of new marketing initiatives, strengthened the regional market leadership and started several process and productivity improvements."

Online bingo industry observers will remember reports on the ongoing legal issues Unibet is involved in with sports betting in France and Sweden and reports of Unibet's cycling team being ejected from the various races in Europe due to monopolistic laws restricting gambling advertising.

On a brighter note people involved in Europe’s bingo online industry will note that Nylander commented about the future of the European gambling scene saying: "Even if the difficulties in France continue, our view is that the French and European gaming market will inevitably be de-monopolised."

Unibet does not offer online bingo products or operate online bingo halls.

Written by John Witherspoon - Play bingo online at http://www.mybingostreet.com/ and read our online bingo blog.