Sportingbet, the online betting service, has announced that it is back in profit in the first half of this year and expects a strong full year on the back of Euro 2008.

The group, which announced a loss before taxation of £11.4 million in the six months to January 2007, has announced a pre-tax profit for the six months to January 31, 2008, of £2.2 million.

The firm said that punter-friendly sports results had hit margins in the first half of the year, but recent cost savings meant it was still on track to meet analysts' forecasts. The group’s share price dropped 1.5p to 47p.

“This has not been achieved by especially favourable outcomes to sports events - the margin percentage is actually slightly lower than last year - but rather from strong growth in turnover from our core sports offering and careful cost control,” said Andrew McIver, chief executive.

Net gaming revenue in the three months to the end of January jumped from £34.4 million to £41.2 million, making a total for the interim period of £71.6 million, up from £66.9 million. Pre-tax profits for the second quarter were £3.6 million, versus £0.1 million.

“Whilst these results are ahead of where we expected to be at this stage, with a fourth quarter dominated by one major event this year, Euro 2008, we are happy to bank the strong performance in these results against the second half and remain confident for the full year's out-turn,” said Mr McIver.

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