Trading Update

18 Nov 2005 07:01

ukbetting PLC18 November 2005 18 November 2005 ukbetting plc Trading update ukbetting plc (LSE: UKB) (the 'Group'), online sports content and gamingcompany, announces that it will report revenues for the year ended 31 December2005 that exceed the top end of the range of current market estimates and GroupEBITDA for 2005 will be towards the lower end of the range of current marketestimates. Revenue out-performance The significant increase in revenues has been achieved by following the strategyof originating gaming customers through its network of sports content sites(e.g. sportinglife.com, teamtalk.com), without any increase in marketing costs.This strategy continues to demonstrate its value by driving an increasinglylarge number of customers to the Group's gaming sites. The Group has alsobenefited significantly from its strategy of completely removing competitoradvertising from its sports content sites at the end of October 2005. InNovember, 'click throughs' and the number of customers registering to theukbetting gaming sites increased by 30% and 25% respectively against the averagefor the preceding four months. Advertising sales continue to perform strongly, despite the reduction inbookmaker revenues, with FMCG advertising revenues up 42% against thecorresponding period last year. Factors affecting EBITDA performance Despite this significant growth in revenues, and in common with otherbookmakers, we experienced a very poor run of sports betting results, whichimpacted gross win, with the result that the group's EBITDA for 2005 will betowards the lower end of current market estimates. Confident outlook for 2006 ukbetting's business model continues to deliver strong revenues, low acquisitioncost customers and real competitive advantage through its substantial sportscontent network, which now reaches 8.75 million users and delivers 330 millionpages a month. As we continue to grow across all revenue streams, ukbetting'ssensitivity to the vagaries of the sports results will diminish and as a resultof this and the very strong fundamentals of the Group, the Board remainspositive for the outlook for 2006 and beyond. -ends- For more information, contact: ukbetting plc 020 7766 6909Peter Dubens, ChairmanAndrew Galvin, Finance Director Financial Dynamics 020 7831 3113Edward Bridges / Juliet Clarke This information is provided by RNS The company news service from the London Stock Exchange