Sky Bet made £30m profit before CVC acquisition

ator Sky Betting and Gaming (Sky Bet) generated operating profit of £30m for the period from 30 June 2014 to 19 March 2015.

The date of 19 March was when entertainment company Sky completed the sale of an 80% controlling stake in Sky Bet to private equity firm CVC Capital Partners and Sky Bet’s results were presented as discontinued operations.

Sky retained an equity stake of 20% in the operator following the completion of the deal, and the Sky Bet name is still used by CVC as part of a long-term licensing agreement between both companies.

Revenue for the period was £158m and profit before tax was £630m.

Profit on the disposal of Sky Bet was £600m, while profit for the year was £620m.

CVC’s acquisition of Sky Bet valued it at £800m and Sky received cash of £600m and a vendor loan note, while it will be entitled to further consideration contingent on CVC achieving minimum return criteria on its investment.

Sky Bet’s results were a section within company-wide results for Sky for the year ending 30 June 2015 and were published alongside the previously announced results for the year ending 30 June 2014.

Revenue for the year ending 30 June 2014 was £182m, while operating profit was £57m and profit for the year was £45m.