In the past few days ,Kenyan based company Sport Pesa has made international headlines by being the first African company to feature as an official sponsor for two English premier league teams.
Nairobi wire which is a Kenyan blog estimated that the deal between Sport Pesa and Hull city was worth 130-400 million Kshs .
The Company proved it’s financial might through the two sponsorship deals and I couldn’t stop but ask myself a crucial questions which I know most of you have contemplated about.
How much does Sport Pesa Make Per Month?
I did a little research before doing my estimates . Popular Gossip site Daily Post estimated that the company makes 130 million Kshs per day.
I however totally disagree with that info since the most profitable company in Kenya which is Safaricom makes 108 million Ksh per day in Profits..
Since Sport Pesa is an online company so doing the estimation was not that hard due to the fact that knowing the sites traffic info was an easy guide on knowing the number of transactions the company makes per day
I downloaded Sportpesa.com traffic analysis from similar webs and this how much traffic it gets per month.
The screen shot shows that Sportpesa is the 5th most visited website in Kenya and averagely gets 6.4 million views per month.
We will estimate the daily views for the website= 6,400,000/30 days= 213,333 views
Lets assume that 80% of individuals who visit the site make a bet. ( I have chosen 80% since betting sites have high conversion rates due to their nature of being addictive)
Thus n.o people who will bet= 80% of 213,333= 170,666 Kenyans per day
Lets also make an assumption that each individual makes only one bet of 100 ksh . ( Am aware that others make bets of more that 10,000 ksh but am just estimating the profits on the lower limit.)
Total amount it makes per day= 170,666 *100= 17.6 million ksh
Thus if I could quote the estimate profitability range of the company I would say 17.6 – 30 million per day.
Monthly averages would range from between 0.52 billion- 1 billion.
NB: I DIDN’T INCLUDE DEDUCTION OF WINNINGS SINCE I ASSUMED THAT PROFITS MADE ON SMS BETS WOULD CANCEL OUT THE WINNINGS WHICH WERE TO BE DEDUCTED.
This is the full list of top Sportpesa owners and their share percentages
- Gene Grand – American -21%
- Asenath Wachera Maina- Kenyan-21%
- Guerrasim Nikolov- Bulgerian-21%
- Paul Ndugu Wanderi- Kenyan-17%
- Ronald Kamwiko Karauri – 6%
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Written by : Paul ( Financial advisor)
studied Financial Economics at Jkuat.