Part 1: The regulatory backdrop
the first quarter of last year, when
it was gaming only, is stark (see
Table 2).
As can be seen, the addition
of sports betting to its revenues
sees its tax rate as a percentage
of revenue more than double from
16.8% to 43.7%. This compares with
a blended tax rate of 37.6% for 2017
as a whole and shows how the tax
system has meant that payments
were more clearly backended
towards the last three quarters.
The company also pointed out
that marketing related to the launch
of the sports betting business also
hurt the first quarter EBITDA figure,
which fell year-on-year to €1.2m.
Table 2: Estoril Sol earnings breakdown comparison, 1Q18 and 1Q17
1Q18 (€m) 1Q17 (€m) FY17
Slots 4.65 3.05 11.4
Table games 0.88 1.04 7.5
Sports betting 1.73 - 4.5
Gross revenues 7.26 4.09 23.4
Less bonuses and free bets -1.56 -0.44 -4.5
5.7 3.65 18.9
Online gaming tax -2.49 -0.61 -7.1
Operating income 3.21 3.04 11.8
1.2 2.0 6.4
43.7 16.8 37.6
Net revenues
Online EBITDA
Tax as a percentage of revenues
Source: Estoril Sol/report estimates
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