Profits up but costs also for Sportingbet

Online bookie Sportingbet posted a surge in profits today but failed to win over investors after warning higher costs would dent its full-year performance.

Turnover in the six months to September 30 soared from £293.2m (€460.3m) £494.5m (€776.3m), boosted by acquisitions.

In July it bought UK rival Sporting Odds and last year snapped up US gambling operator Sportsbook.

The amount of punters gambling online also rose during the first half, with customer numbers up 35% and more than 8.9 million bets placed.

But the shine was taken off the results after Sportingbet warned of higher costs going forward.

Chairman Peter Dicks said: "Sportingbet has recently seen an increase in the cost of processing customer funds and this, together with the adverse dollar sterling currency movement during this year, will have an impact on the second half of the financial year."

Mr Dicks insisted the underlying growth of business - customer numbers, bets placed and overall revenues - continued to be in line with internal expectations.

The European business was also on track to reach profitability before the year end, he added.

However shares in the group dived 13p to 46.5p, a 22% slide.

London-based Sportingbet joined AIM, the London Stock Exchange’s market for smaller companies, in January 2001.