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.
