Part 2 – Australian market review
Part 2
Australian market review
Having previously said that bet365 can lay claim
The best performance over the six months came
to be the only true global online gambling brand,
from Ladbrokes, at least as far as net revenue and
we now turn to the one country where it would
stakes are concerned. However, despite the rise of
appear to be struggling to grab a toe-hold, Australia.
42% in the case of the first metric, the 32% rise in
As can be seen from our table, bet365 lags in the
marketing costs and the 49% rise in operating costs
market. We should add the caveat that there are likely
left the company going backwards in operating
smaller operators in the corporate bookmaking market
profit, down to a mere A$4m (£2.4m, €2.7m) in the
for which there is little or no visibility. Unibet has an
first half.
operation in Australia, for instance, but as with other
It is harder to judge the performance of Crown
parts of its business, it does not break down earnings
Resorts’ digital operations. Within the figures given in
by jurisdiction but only by region.
the company’s digital operations are those for its social
As can be seen, the first half of 2016 was a mixed
gaming unit alongside the CrownBet business (which
bag. Market leader Sportsbet (Paddy Power Betfair)
Crown owns 60% of) and Betfair Australia which Crown
continued to power ahead, with a 29% rise in amounts
Resorts now owns 100% of.
staked to A$2.1bn (£1.26bn, €1.4bn).
Similarly, on the slightly impenetrable side, we
This has enabled the company to overtake Tabcorp’s
have the figures from Tatts, which revealed its digital
TAB earnings, but when Luxbet’s stakes total of
wagering growth rate for the period (20%-plus) but
A$345.7m are taken into account, Tabcorp’s total for
only gave a percentage figure for the digital wagering
the six months to June rises to A$2.2bn.
element of its UBET business (30.2%). Crudely, we have
Sportsbet’s progress stands in contrast to William
taken that percentage and derived a net revenue figure
Hill, where its single brand strategy has arguably failed
to ignite at all. Though it managed a 13% rise in stakes,
for the business as a guide.
Where Tatts is more open is with regard to the
its net revenue figures continue to fall, down 10% to
revenue percentage splits by sport (excluding
A$93.2m (£54.8m, €63m) in the first half.
horseracing), which gives a clearer picture of the
Company
Net revenue
William Hill
% rise
Stakes
% rise2
Op. profit
% rise3
93.2
-10
1156.6
13
68.9
-13
PPB
219.3
17
2140.6
29
164.9
14
Ladbrokes
69.9
42
1002.3
54
4
-23
-
-
1901.9
15
-
-
23.8
-10.5
345.7
-1.5
-
-
CrownBet (FY)
229.9
-
-
-
-
-
Tatts - UBET (FY)
184.2
30.2
1245.8
30.2
-
-
78.9
-
2500
-
-10.9
-
Tabcorp - TAB (2H)
Luxbet (2H)
Bet365 (FY)
Source: Company data, iGB Market Monitor
iGaming Business Market Monitor – UK, Australia and Spain • September 2016
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