Centrebet
is an Australian bookmaker licensed in the Northern
Territory.
Centrebet
originated from Alice Springs, Northern Territory
and was the first bookmaker to be licensed in Australia
in 1993 and the first bookmaker to go online in the
Southern Hemisphere. Centrebet was acquired by its
biggest domestic rival, the SportOdds Group in 2003
for the sum of AUD$46.55 million. In 2005, SportOdds
merged its Centrebet, SportOdds.com and SuperOdds.co.uk
businesses into one entity, known as Centrebet.
Con
Kafataris is the CEO of the company while Peter Foot
acts as chief bookmaker.
Centrebet
is the second largest private bookmaking company in
Australia (Sportsbet is the largest) and one of the
biggest bookmakers in the world, with betting across
all sports (both within and outside of Australia),
horse racing and other events, including Australian
elections and television shows. The Centrebet Group
offers over 4000 individual betting options every
week.
The
Centrebet Group has recently commenced expansion of
its core operations to include online gaming, including
poker and casino. However, due to Australia's Interactive
Gambling Act 2001, the Group are not permitted to
offer gaming products to Australians. In 2006, the
company listed on the Australian Stock Exchange.
CENTREBET
has flagged strong profit growth next year, as it
takes a bigger share of the country's online wagering
revenue.
"Centrebet
is well positioned to deliver strong profit growth
in the 2010 financial year, supported by continued
growth in the Australian market, a rationalised cost
base and marketing investment adjusted to reflect
the change in industry dynamics," deputy managing
director Michael McRitchie said.
The
company also confirmed full-year profit guidance for
2008-09 at the upper end of its April forecast of
between $10 million and $11 million.
In
February, Centrebet said it was on track to deliver
a full-year profit of $14.3m, but two months later
it downgraded this forecast by 30 per cent.
The
company was stung by an $800,000 bad debt from one
of its customers, former Billabong chief executive
Matthew Perrin, who filed for bankruptcy in March.
Mr
McRitchie said deregulation had forced Centrebet to
spend more on marketing, reducing profits.
"Centrebet
has now completed an extensive cost rationalisation
process to mitigate the cost impact of industry changes
and refocus on key priority markets -- total annualised
saving of over $2m is expected on a pre-tax basis,"
he said.
The
company has trimmed costs and cut staff numbers by
15 per cent, resulting in 34 job losses.
Managing
director Con Kafataris said: "While deregulation
of the industry has presented some short-term cost
challenges, it has created an attractive outlook for
Centrebet to grow market share.
"We
expect the overall industry to show strong growth
over the medium term and Centrebet is well positioned
to maximise our share of the growth through customer-focused
product offerings, targeted marketing investment and
disciplined risk and cost management."
In
February, Centrebet made a $22m offer for International
All Sports but was rebuffed. Darwin-based Sportsbet
and its parent, Irish betting group Paddy Power, have
since made a takeover bid for IAS.
Based
on unaudited accounts, Centrebet said its total revenue
had risen 6 per cent to $66.2m, driven by growth in
the Australian online wagering market.
Australian
online revenue rose 23 per cent to $32.9m -- 50 per
cent of total revenue. Its on-course revenue fell
31 per cent to $3.3 million, which only made up 5
per cent of revenue.
European
revenue, excluding poker, remained flat at $26.1m.
European poker revenue decreased 17 per cent to $3.8m.
Centrebet's
successful launch of its fixed odds management contracts
with West Australian, ACT and Tasmanian TABs was a
"positive start".
The
company would manage more than $200m a year in fixed
costs betting turnover on behalf of the TABs.
Centrebet's
share price rose 3c yesterday to close at 93c.
Not
all economists would punt on Australia falling into
recession, but betting agency Centrebet is offering
good odds on the economy bottoming out.
The
bookmaker has Australia a $1.12 favourite to fall
into recession in the next 12 months and $5.50 if
it is avoided.
Centrebet
media chief Neil Evans said the effects of the production
meltdown in industries such as car manufacturing had
yet to hit Australia's economy.
"The
global financial downturn has not even gone close
to bottoming out through Australia's economy,"
Mr Evans said in a statement on Tuesday.
"Allowing
for fearful retail and wholesale forecasts through
the Christmas-New Year period, it will be a miracle
if Australia avoids recession."
Economic
forecasts from JP Morgan and Citigroup both predict
Australia will suffer a technical recession - face
two quarters of negative economic growth in early
2009.
Other
economists predict the economy will be flat, avoiding
recession through measures like the federal government's
economic stimulus package and cuts in interest rates.
Earlier
this month, the Australian Business Economists executive
committee, including economists from Westpac, nabCapital
and Reserve Bank of Australia, placed the chance of
recession at 40 per cent.
Centrebet
has also released its latest market for the Reserve
Bank's next interest rates decision, with a 75 basis
point rate cut the favourite at $2.35, ahead of a
50 basis point cut at $2.40, and 100 basis point drop
at $3.50.
Chris
Munce market pulled in bid to ease tension, by Brendan
Cormick - 12th December 2008 (Credit:
The Australian)
A
Northern Territory betting outlet was yesterday asked
to withdraw a market framed on the return to race
riding of convicted jockey Chris Munce because it
threatened to inflame the strained relationship between
Hong Kong and Racing NSW further.
Corporate
bookmaker Centrebet prepared to bet $5.50 about the
Melbourne Cup-winning jockey riding a winner and making
a fairytale return to the racetrack at Randwick's
Kensington course today. Punters could take $1.15
about Munce going winless on his first day back at
the "office".
"The
(Northern Territory) Government stepped in and put
an end to the market before it had a chance to see
the light of day," said the source, who did not
wish to be identified. "The authorities felt
it was too sensitive, given all the tension between
NSW and Hong Kong."
Centrebet
considered Sheezvalue, in the fifth race, the best
of Munce's rides. His book of mounts was reduced to
two yesterday when trainer David Hayes withdrew Swoop
And Destroy from the opening event on the twilight
card.
Munce's
clearance by Racing NSW will be a topic of discussion
at the Australian Racing Board's monthly meeting this
morning in Sydney.
Racing
NSW elected not to acknowledge a 30-month disqualification,
handed down by the Hong Kong Jockey Club this month.
Backdated to March 1, 2007 and still with 10 months
to run, the disqualification would normally have been
routinely endorsed in Australia.
