SportBusiness.com

World Cup boost for Sportingbet

Online gambling company Sportingbet reports that it gained 11,000 new customers during the World Cup and over 300,000 bets, helping to boost turnover in the first quarter ending June 30 to £248million ($388m) from £111m ($174m) last year.

The company said that these new customers, together with organic growth from other marketing initiatives, helped it cut its cost of acquiring a registered customer to £54 ($85).

In addition, Sportingbet reported its lowest ever cost per active customer of £305 ($478).

The World Cup was also a surprising cash generator for Sportingbet's American business. The spend per head rose from £5,373 ($8,411) in the first quarter to £6,978 ($10,924) this year, with a constant bet size of £50 ($78).

This has been driven by strong betting on the World Cup, with a significant proportion of Sportingbet's Americn database betting on soccer for the first time.

Leading investment bank Dresdner Kleinwort Wasserstein has reiterated its 'buy' recommendation on Sportingbet shares and said the results were in line with expectations with operating profit of £1.4m ($2.2m) slightly above forecasts.