Sports betting online is a priori deficit

A little over six months after the partial liberalisation of the French market, the PMU he managed his breakthrough in the sports betting online

2010 was the year hinge, there were risks, we have transformed the test. Party of zero in the sports betting on the Internet, the PMU has made 44 million of gross revenues in six months and a half, football generates 65 and 25 tennis. These results validate our strategy of diversification. In six months of activity, we have done better than the French games throughout the year 2009 (EUR 43 million online, Editor's note). We believe our market share of about 10 over this period. It is now closer to 15. At this stage, we are the fourth operator and perhaps even the third. In online poker, we believe our market share to 5 or 6, with a total of EUR 155 million updates. Also note that we record an overall increase of 0.4 of horse racing betting, our heart of activity, which has remained resilient. The results, which is positive and encouraging for the future, it is the ability of the company to mobilize in a very short time. The diversification of the PMU decision was made in the summer 2009, and we were ready in June 2010.

Are the results consistent with your goals

We exceed them to poker, activity is even already in the balance. By contrast, sportsbook are developed much less rapidly. The sports betting on the Internet market is lower than expected because there is France a culture of the game in the physical networks. It remains therefore to develop and we are going to work. However, it should be noted that our economic diversification has absolutely not affected our Equestrian activity. We record a growth of 10 on betting Betting online, for a total of EUR 730 million updates. The site pmu.fr very clearly remains the first site of paris in line with a total turnover of 930 million, an increase of 39, the amount of gross income, after return to the players, increasing by 18. In total, we have acquired additional active client 140,000 on sale net, bringing their number to more than 500,000. I would add that half of new clients are horse bets online. There was no cannibalization. Our customers consume more. Before the opening, we felt that 37 of our horse bettors playing on illegal sites. Now, we see that 33 of our horse betting on the Internet using the pmu.fr for their sports betting platform or to play poker. They now play with us and our unique brand policy was good.

How has performed at the same time the traditional network

The activity was stable with an increase in warnings of 0.1, while it declined by 0.3 in 2009. We have not abandoned our network. We continued its densification to reach 11 000 points of sale in late 2010 and we have increased the number of races paris media. In total, the amount of issues registered by the PMU grew 2.6 in 2010 to reach EUR 9,54 billion. And despite significant investments, the increase in its net result will exceed the 6 increase that we had planned in 2010 to the amount of 2009 (731 million euros, Editor's note). This is very good news for the horse racing industry to which the result of the PMU is fully paid.

You are in equilibrium with online poker. Sports betting online is a priori deficit...

It was expected because of start-up costs, including advertising while we have no communication on the poker. We had an objective to be profitable in year 3, so in 2012. It may be that there is a lag of six months because of the smaller size of the market. Of course, horse betting activity is profitable.

Some sports betting operators continue to criticize the legal and fiscal framework. What do you think

It should be recalled that this law is primarily a law of legalization and regulation. Some today approved operators exercised their activity illegally. The law has not changed since the opening and it was known before the filing of applications. Everyone was warned. However, do not mix law and operating account. When you have too many expenses, you have losses. The true subject, what marketing spend.

What are your goals for 2011

In 2010, our goal was to come as a surprise. It has surprised! Year 2011 looks just as promising. The PMU on Internet activity will exceed 1 billion euros of a few hundreds of millions, consolidating our position as number one. There is also impressive growth rates on mobile applications for smartphones and tablets. I can readily imagine tomorrow our clients follow the matches of their favourite sport on television and bet live from these mobile devices. In addition, we intend to continue to surprise on our core business, horse betting. Where, in many countries the market is declining, the PMU is maintaining its growth: on the Internet, including through the training effect still expected strong growth of sports betting and poker; in our physical network, where we continued our investments, including, deployment of pillars and the efforts made in the computer. As such, in 2010 we divided by 5 losses of issues associated with computer problems, compared to 2009.

Another fundamental element of our offer, the dissemination of images of races through Equidia, the first European channel in live time. More than 60 of French households have access. Our intention is that it is disseminated as widely as possible.

In responding to the invitation to tender for the national rugby league you may have in other images that horse diffuser

The image of the main sports are costs that are not compatible with the economic model of the operators. However, for us the images have value for live betting sportsbook. Where, for example, the agreement concluded with Perform to disseminate images of competition. From the moment the NRL has included this aspect in its tender, it is logical that we were watching. But I will not comment.

Do you have other redisseminators of growth

Yes, international. First, we propose to bettors more in addition to foreign races, and they meet a true success. Then, the transmission by operators of foreign French races paris recorded good growth, 20 in 2010. And this will continue in view of the significant contracts with a Greek operator, and in Belgium, with Ladbrokes for distribution of our paris in mutual agreement.

Finally, we look at a number of issues which could be of the PMU, if they were completed, an operator of paris in European countries other than the France.