Swedish online gaming operator, Unibet, has seen a fall in fourth quarter as well as full-year profits for 2007.

Pre-tax profits decreased £8.5 million, from £28.5 million in 2006 to £20 million in 2007.  The pre-tax profits for the fourth quarter of 2007 were £2.7 million - a fall of £4.7 million on the same period last year - where pre-tax profits were a healthy £7.4 million.
 
The company has blamed the fall in profits on “increased marketing costs” related to “revenue share and affiliate programme costs.”  It also cites “unsatisfactory earnings” and “exceptional charges” related to the exit of the firm’s cycling team from the Pro Tour cycling calendar.  These factors have led to the fall in profits as its overall revenue remains strong.

It wasn’t all bad news for Unibet as turnover for 2007 was £81.4 million compared with £71.8 million in 2006 - a rise of £9.6 million.  It also rose over £5 million to £24.5 million in the fourth quarter of 2007 compared with £19.4 million in the fourth quarter of 2006.  It has also seen quarterly sportsbook margins at 7.5 percent due to some favourable results.  Unibet’s poker product for the Swedish market enjoyed 10 percent growth on a quarterly basis.  Comparing the fourth quarter of 2007 to the third, the customer base rose 15 percent for Unibet and its acquired bingo operator Maria Holdings.