Irish betting company to enter British market

Online betting company SportsSpread plans to enter the lucrative British market and raise up to €3.5 million in new funding.

The company, which is backed by the former Irish soccer international Kevin Moran, has received approval from Britain’s Financial Services Authority to begin trading.

“This has been a long stated aim of this group and the group will launch its product in the UK in early 2005 through a wholly-owned subsidiary Worldspreads Limited,” the firm said in accounts just filed at the Companies Registration Office.

SportsSpread offers traditional sports betting and is heavily involved in the fast-growing spread market for sports and financial products.

The company was set up four years ago by former BNP Paribas currency trader Conor Foley and its directors include Mr Moran and the former Smurfit Stone Container Corporation boss Ray Curran. SportsSpread employs 20 people in their head office in Dublin and the company also has an office in Newry, Northern Ireland.

Spread betting turnover for the year ended 31 March 2004 increased from €50.5 million to €62.2m. Net income from spread betting rose from €1.4m to €1.8m.

Traditional, or fixed odds, betting turnover increased from €7.7m to €8.1m, though its winning bets income was flat at roughly 344,000.

Overall, the company’s pre-tax loss for the year widened to 190,097 from 32,852 the previous year. SportsSpread said this was because of a charge of €287,000 to set up a British office. It also absorbed the Government’s betting levy again rather than pass it on to punters. This cost the firm nearly €105,000.

“Overall, the directors are satisfied with the performance of the group in the last year and that it will become profitable in the next financial year. In connection with its entry into the UK market, the group has been engaged in a fundraising process to raise up to €3.5m for the issue of new convertible loan stock,” the directors added.

Two years ago the company raised €3m from investors through IIB Bank and Merrion Capital and the firm was valued at €11m.

The company attributes its growth to a focus on two key areas excellent customer service and lower margin prices.

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