Fortuna claims ‘strong growth’ in preliminary posting

Per Widerström, chief executive and chairman of Fortuna Entertainment, has paid tribute to the company’s performance in 2016, after preliminary results showed double-digit growth in customer stakes.

The total amount put down by players during the 12-month period to December 31, 2016, was €1.03 billion ($1.09 billion), an increase of 22.5% on the figure recorded at the end of 2015.

Sports betting once again proved to be the main source of income for Fortuna, with customers wagering a total of €1.02 billion on events, up by 23% on the previous year.

Total gross win at the company amounted to €163 million, an increase of 10.5% on 2015, with gross win from online betting jumping 22% year-on-year to €103 million.

However, the company did note a loss in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), which fell by 18.5% to €22 million.

Net profit was also down 42.5% year-on-year to €11 million, although the loss was reduced to 29.5% once adjusted to reflect deferred tax income from group reorganisation in Poland in 2015.

“We are pleased to report on strong growth in total amounts staked for the full year 2016,” Widerström said.

“The amounts staked grew double digits in all our key markets, primarily driven by the online betting growth and in particular mobile sports betting while retail grew single digit.

“Our EBITDA was impacted by the increase in the betting tax rate in the Czech Republic, unfavourable sports results in 2016 and by planned increase of operating costs to support growth opportunities of the company.”

Related article: Fortuna set to purchase Hattrick Sports Group