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mybet Holding SE publishes report on the first nine months of 2014


mybet Holding SE / Key word(s): 9-month figures

13.11.2014 / 09:41


mybet Holding SE publishes report on the first nine months of 2014

- Revenue of around EUR 52 million up 12.4 % on same period of previous year

- EBIT of EUR +214 thousand ahead of target and an improvement of approx. EUR 4.2 million on 2013

- Revenue guidance for 2014 confirmed, full-year EBIT forecast upped

- Announcement of sports betting licence having positive impact

Kiel, November 13, 2014 - mybet Holding SE (Deutsche Börse, Prime Standard, ISIN DE000A0JRU67) today publishes its report on the first nine months of the 2014 financial year. Since the start of the year the company has taken a wide range of measures designed to produce a comprehensive turnaround and establish sustained profitability. The revenue growth and improved operating result (EBIT) in the period under review reflect its initial success in this respect.

After the first three quarters of 2014 consolidated revenue was 6.1 percent up on the previous year at EUR 52.3 million (previous year: EUR 49.3 million). The Spanish subsidiary DIGIDIS S.L. had already been deconsolidated in November 2013. Both DIGIDIS S.L. and the stake held in the Spanish joint venture DIGIDIS S.A. had been loss-making operations and were sold off during the third quarter of 2014. After adjustment for the revenue effect of the Spanish lottery division for the corresponding period of 2013, revenue growth for the first nine months of 2014 is 12.4 percent (adjusted revenue, previous year: EUR 46.5 million). Profitability showed an appreciable improvement on the previous year: after the first nine months of 2014, mybet is able to report slightly positive earnings before interest and taxes (EBIT) of EUR 214 thousand (previous year: EUR -4.0 million) thanks to a healthier cost basis.

Sven Ivo Brinck, CEO of mybet Holding SE, commented: "We have been able to increase our revenue as planned. Our operating result even progressed slightly better than we had expected. This performance and the structural improvements show that mybet is on the right track. We will actively take up the challenges that we have identified for 2014 and beyond."

Based on the ahead-of-target operating result after the first nine months of 2014 and non-recurring effects from the sale and deconsolidation of the Italian subsidiary MYBET ITALIA S.R.L. at the end of September, the company expects full-year EBIT to come in at between EUR 0.5 million and EUR 0.65 million. The previous target envisaged getting EBIT back at break-even by the end of the year. Revenue expectations remain unchanged at between EUR 70 million and EUR 75 million.

Looking at the segments individually, growth for the Sports Betting and Horse Betting areas compensated for the decline in the Casino & Poker segment due to regulatory factors and the exit from lottery business: revenue for the Sports Betting segment for the first nine months of 2014 reached EUR 30.1 million, 23.3 % up on the previous year's figure of EUR 26.0 million. Growth in the sports betting shops and the FIFA World Cup, with its corresponding impact on revenue, were the factors at work here. In the Casino & Poker segment, revenue fell as expected by 6.2 percent, down from EUR 17.5 million in the prior-year period to EUR 16.4 million. The prior-year figure still includes revenue from European markets that are now regulated and in which mybet ceased to operate in mid-2013. The Horse Betting segment increased its revenue by 32.1 percent in the 2014 reporting period to EUR 5.0 million (previous year: EUR 3.8 million). Strong growth in online business lay behind this development. Revenue for the other operating segment, which comprises mainly the activities of C4U-Malta Ltd., declined from EUR 831 thousand in the prior-year period to EUR 769 thousand in the first nine months of 2014.

The liquidity position of the mybet Group after the first three quarters of 2014 has improved compared with December 31, 2013. At the end of the third quarter of 2014 the company had cash and cash equivalents amounting to EUR 9.0 million, compared with EUR 8.0 million at December 31, 2013.

Outlook

At the start of September 2014, mybet was already selected by the Hesse Ministry of the Interior and Sports (HMdIS) to receive one of the 20 sports betting licences to be awarded nationwide. On the basis of the announcement by the agency that grants the licences, the company has registered significantly more interest from the market in entering into partnerships with mybet. mybet would like to capitalise on this positive momentum and build on the growth that it is prompting.

mybet will continue to focus fully on successfully completing the turnaround that is already under way. Since mid-way through the first half, mybet has succeeded in permanently improving the technical stability of the online platform. Two important product developments for the shop sales channel were realised in the third quarter of 2014, in the shape of the loyalty card and the first generation of mybet terminals. The Management Board expects to be able to step up a level with value creation from the mybet shops. Alongside that, online business is being continually optimised through an improved product experience, new mobile offerings and more efficient marketing.

For the fourth quarter mybet expects a positive financial performance, on which basis the Management Board anticipates a clearly positive EBIT of EUR 0.5 to EUR 0.65 million, with a slight improvement in the revenue volume to EUR 70 to 75 million.

Key figures 9M 2014

  9M 2014 9M 2013 Change

 
EUR '000 EUR '000 %
Revenue 52,291 49,317 +6.1 %
Sports Betting 30,141 24,448 +23.3 %
Casino & Poker 16,363 17,453 -6.2%
Lotteries 0 2,683 -100.0 %
Horse Betting 5,014 3,796 +32.1 %
Other 769 831 -7.5 %
EBITDA, adjusted n/a -2,167 n/a
EBITDA 1,766 -1,451 n/a
EBIT, adjusted n/a -4,011 n/a
EBIT 214 -3,980 n/a
Net profit/loss for the period -94 -2,672 n/a
Earnings per share (EUR) -0.03 -0.12 n/a
       
  30/09/2014 31/12/2013  
Cash and cash equivalents 9,011 7,965 +13.1 %
Shareholders' equity 18,123 18,306 -3.5%
Equity ratio 47.9 % 47.4 % +0.5 pp
 

 

The Nine-Month Report will be made available for downloading on Thursday, November 13, 2014 on the websites www.deutsche-boerse.com and www.mybet-se.com.


Contact:
mybet Holding SE
Investor Relations & Corporate Communications
Yulia Link
Tel.: +49 (40) 8537 880
Fax: +49 (40) 8537 8830
Mail: yulia.link@mybet.com




Contact:
mybet Holding SE
Investor Relations & Corporate Communications
Yulia Link
Tel. +49 (40) 85 37 88 47
Fax +49 (40) 85 37 88 30
Mail yulia.link@mybet.com




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296947  13.11.2014