Fortuna Entertainment has seen a fall in their profits of 47% in the first half of 2015

Fortuna Entertainment a betting operator based in Eastern Europe has reported to have suffered a huge loss of 47% in its net profit to record at €4.8 million as opposed to €8.9 million recorded in H1 2014. The main reason that has led to this loss has been attributed to the drastic fall in its group operating margins to record at 10.4% from 18.5% of H1 2014. This has resulted from being smacked by inauspicious sports outcome during the month of March.

In the initial six months of 2015, its incomes fell drastically by 5% to record at €46 million as a result of betting decline in its main fan base Czech Republic. Moreover, it can be remembered that moments earlier, the government of Slovakia had cancelled the online handling fees which affected Fortuna.

The company had a glorious year of 2014 where revenue had rose up and mostly due to the presence of the FIFA World Cup. However, vertical replicated a 6% loss to record at €42 million as compared to €45.5 million recorded in H1 2014.

Despite the fact that this company oversaw a 23% betting increase to records its total earning to €411 million, the aspect of sustaining its operation performance was not evident which if it happened would have shown an increase in core market taxes as well as the operational costs.

Fortuna recorded an increase of 9.7% in the total operating cost in the initial six months of 2015 to record at €37.1 million as compared to H1 of 2014. The recruitment of several staff members by Fortuna development of its cost would be crucial as it tries to mould its future corporate growth.

Per Widerstrom CEO of Fortuna Entertainment claimed that this performance will not affect their year set goals. The outcome was as a result of higher rate of demand on online sports betting, the live streaming offer as well as the eradication of online betting fee in Slovakia. He added the comparing year and another has been affected by the absence of any global sporting event. For instance last year, income for Fortuna was much higher since there was the FIFA World Cup in Brazil unlike this year where no major event is taking place.

This article is published in: Betting Operators Finances
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