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corporate factsheetsporting index group

the sporting index groupSporting Index was founded in 1992 and is well known as the undisputed world leader in sports spread betting, dominating the global market with an estimated 80%+ market share. In addition to its established B2C operation (Sporting Index), the Group is also increasingly active in the B2B sphere, supplying services to international betting and gaming operators under its Sporting Solutions brand.

Privately owned, Sporting Index is highly pro�table. Recent expansion means the company now employs 180 sta�, all based in its central London HQ.

At the heart of the business is a world class trading, modelling and liability management capability that is widely acknowledged as amongst the best in the global betting market. The Group combines the latest technology with unrivalled trader expertise to service its core sports spread betting brand as well as a rapidly increasing number of wholesale customers who rely on the company’s services to underpin their own sportsbook operations.

Sporting Index’s B2C business continues to grow in the face of a �ercely competitive online betting market. The company o�ers spread bets on a wide variety of sports, on political and showbiz events, as well as on a portfolio of unique virtual games. Clients transact via its websites, award winning mobile phone applications, and a 24/7 voice telephony service. Sporting Index prides itself on striving to deliver an unrivalled level of customer service.

The Group’s B2B business, Sporting Solutions, leverages Sporting Index’s existing trading skills, utilising new technology to provide other betting companies with a wide range of �xed-odds in-play prices, thus servicing the fastest growing segment of the online sports betting market. Sporting Solutions has quickly established itself as a leading data provider with a number of �agship betting brands signed up.

Sporting Index is authorised and regulated in the UK by the Financial Services Authority and the Gambling Commission.

Mark Redwood Non-executive ChairmanWarren Murphy Chief Executive O�cerSimon Trim Trading DirectorRonnie Whelan Chief Operating O�cerEachan Fletcher Chief Information O�cerMark Maydon Commercial Director Martin Pates Finance Director

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milestones

Sporting Index is established

Sporting Solutions is established

Sporting Index launches sportingodds.com, one of the �rst fully interactive �xed-odds websites

in the marketplace. Sportingodds was eventually sold to Sportingbet PLC in 2003 for £6 million

Sporting Index launches the world’s �rst fully interactive internet sports spread

betting service at sportingindex.com

Sporting Index launches Bethilo as a revolutionary new way to sports spread bet. Bethilo simpli�es

spread betting for the mass market by removing jargon and enabling spread bets from as little as 1p

Duke Street Capital, a UK private equity �rm, backs a management buyout of

Sporting Index in 2002 for £53 million

Sporting Index unveils ‘Bet on the Move’, providing mobile phone users with the UK’s

�rst real time sports spread betting service

Sporting Index launches the world’s �rst ever spread betting games, o�ering clients

the opportunity to spread bet on quick to play random number generated games

HgCapital, a European sectorfocused private equity investor,

supported by the management, acquire Sporting Index for £75.8 million

Sporting Solutions sign Party Gaming as its �rst partner providing a comprehensive �xed-odds

horse racing service for its PartyBets.com platform

William Hill sign up to Sporting Solutions’ burgeoning B2B service

Warren Murphy is promoted to Chief Executive O�cer

sportingindex.com is relaunched

Skybet signs to Sporting Solutions

ToteSport become the sixth bookmaker signed up to Sporting Solutions

Sporting Index’s ‘Bet on the Move’ successfully launched onto the

iPhone ahead of the FIFA World Cup

The FIFA World Cup provides the centrepiece of Sporting Index’s busiest and most pro�table

trading period in the Group’s 18-year history

Mark Redwood is appointedSporting Index Chairman

1992 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 2011

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what is spread betting?Spread betting on sport has been around for 20 years. It traces its roots back to the trading of �nancial assets – be that currencies, equities or commodities – and hence shares much of the jargon, such as “buy” and “sell” or “long” and “short”.

Instead of trading markets based on an underlying �nancial asset, Sporting Index make markets in what you might call a new asset class – what happens in a sports �xture. So while the �nancial markets trade the FTSE index or the price of gold, Sporting Index trade the number of goals in a football match or the number of runs a batsman will score in a cricket innings.

We therefore make predictions on various aspects of an event, pitching our opinion against our clients. They can decide whether our predictions have been set too high or too low – and bet accordingly.

These predictions are presented as two prices – exactly as you would see two prices if you are changing money at a currency exchange outlet. The range is known as the ‘spread’ and you bet low (‘sell’) at the lower (�rst named) price and bet high (‘buy’) at the second price.

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80% market share... servicing 60,000 clients from 90 countries... 24/7...

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what is spread betting?Spread betting on sport has been around for 20 years. It traces its roots back to the trading of �nancial assets – be that currencies, equities or commodities – and hence shares much of the jargon, such as “buy” and “sell” or “long” and “short”.

Instead of trading markets based on an underlying �nancial asset, Sporting Index make markets in what you might call a new asset class – what happens in a sports �xture. So while the �nancial markets trade the FTSE index or the price of gold, Sporting Index trade the number of goals in a football match or the number of runs a batsman will score in a cricket innings.

We therefore make predictions on various aspects of an event, pitching our opinion against our clients. They can decide whether our predictions have been set too high or too low – and bet accordingly.

These predictions are presented as two prices – exactly as you would see two prices if you are changing money at a currency exchange outlet. The range is known as the ‘spread’ and you bet low (‘sell’) at the lower (�rst named) price and bet high (‘buy’) at the second price.

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80% market share... servicing 60,000 clients from 90 countries... 24/7...

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how do you win or lose?Spread betting allows clients to benet from the accuracy of a wager rather than a binary ‘win or lose’ outcome. The amount won (or lost) from a spread bet depends on your stake size and how right or wrong you are.

Here’s an example. Sporting Index might predict that the rst goal between Arsenal and Manchester United will be scored in the 36th minute and consequently set a spread of 35 - 37 minutes.

One client who believes there is bound to be an early goal goes LOW at 35 minutes while another who thinks that both defences will be at their best goes HIGH at 37 minutes. Both choose a stake of £1 per minute.

Imagine the rst goal is scored in the 25th minute. The client who went LOW at 35 minutes wins 10 times his stake (35 minutes take away 25 minutes = £10) because he correctly forecast a goal would be scored before 35 minutes were up. However the client who went HIGH at 37 minutes – believing the game would be scoreless until at least that point – loses 12 times his stake (37 minus 25 = £12).

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processing 4m bets per annum... on over 22,500 events... across 35 global sports...

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what makes it unique?Spread betting has experienced substantial growth over recent years because the product o�ers signi�cant bene�ts when compared to other forms of betting. In short, there’s no more exciting way to bet.

Unlike traditional �xed-odds betting, in spread betting the more right you are the more you win. Conversely, the more wrong you are, the more you lose. You do not enter into a �xed stake and known return bet. No other form of betting delivers this. Spread betting also allows you to trade in and out of bets – through to the last shot or �nal whistle. So you can close bets, taking an early pro�t, or cut your losses at any time until the end result is known. Alternatively, you can open new bets at any time as an event unfolds and the performance of a team or individual becomes clearer.

You can back teams or individuals to either perform well or badly. If you believe we’ve overestimated the chance of something happening, you can bet against it. So you can oppose favourites without nominating who will beat them. In a horse race for example, opposing a favourite means you are cheering on all other runners in the race.

These unique features have seen spread betting become a perfect complement to live sport. It’s no coincidence that the dramatic growth of Sporting Index has mirrored that of live televised sport since the early 1990s.

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over 50% of bets taken in-play.... more than 10% taken via mobile...

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what makes it unique?Spread betting has experienced substantial growth over recent years because the product o�ers signi�cant bene�ts when compared to other forms of betting. In short, there’s no more exciting way to bet.

Unlike traditional �xed-odds betting, in spread betting the more right you are the more you win. Conversely, the more wrong you are, the more you lose. You do not enter into a �xed stake and known return bet. No other form of betting delivers this. Spread betting also allows you to trade in and out of bets – through to the last shot or �nal whistle. So you can close bets, taking an early pro�t, or cut your losses at any time until the end result is known. Alternatively, you can open new bets at any time as an event unfolds and the performance of a team or individual becomes clearer.

You can back teams or individuals to either perform well or badly. If you believe we’ve overestimated the chance of something happening, you can bet against it. So you can oppose favourites without nominating who will beat them. In a horse race for example, opposing a favourite means you are cheering on all other runners in the race.

These unique features have seen spread betting become a perfect complement to live sport. It’s no coincidence that the dramatic growth of Sporting Index has mirrored that of live televised sport since the early 1990s.

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over 50% of bets taken in-play.... more than 10% taken via mobile...

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about sporting solutionsSporting Index pioneered the ability to bet ‘in-play’ during sports �xtures in the 1990s. Trading markets during the course of an event is in the DNA of our business. It was a natural step when, in 2007, Sporting Index moved into the B2B arena with the creation of Sporting Solutions, leveraging our in-play skills to supply the wider betting industry.

O�ering thousands of prices in-play with the requisite level of accuracy is a result of rare skill, acquired knowledge and highly developed technology. Our unrivalled trading expertise is combined with advanced statistical analysis, and unique proprietary models, in order to produce a triangulated price.

We have invested signi�cantly into our pre-eminent models, but it is the unique overlay of our trading expertise which means we never supply a pure algorithmic price. We maintain that understanding the di�erence between the ‘right price’ and a ‘tradeable’ price is a crucial point of di�erentiation and a Sporting Solutions USP.

This delivers margin enhancement and revenue growth over an enhanced range of in-play markets for our wholesale partners. Additionally, our partners also have the potential to realise cost synergies through a reduction in expensive trading overheads.

Breadth of coverage is complemented by a depth of betting opportunities. We already cover over 20 sports in the Sporting Solutions service with more due to come on stream in 2011:

Football NFL American Football Euro Basketball SnookerTennis US College Football Euro Handball DartsRugby Union NBA Basketball Euro Ice Hockey Horse RacingRugby League US College Basketball Euro Volleyball Gaelic FootballCricket (Test) MLB Baseball Aussie RulesCricket (Limited Overs) NHL Ice Hockey

Today Sporting Solutions is a leading sports betting data provider, o�ering a one-stop shop in-play solution. The proposition has quickly proven itself as with a rapidly growing number of marquee betting brands signed up to the service, including William Hill, Partybets, Centrebet, Skybet and ToteSport.

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for all general enquiries please contact us at:Sporting Index GroupGateway House, Milverton Street, London, SE11 4APE: enquiries@sportingindex.comT: +44 (0) 20 7840 4050www.sportingindex.info

for all media enquiries please contact our PR team:Bill EsdaileSquare in the Air CommunicationsE: bill@squareintheair.comT: +44 (0) 20 7239 8242T: +44 (0) 7721 678 375www.squareintheair.com

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