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mybet profits from strong online growth in first quarter of 2013


mybet Holding SE / Key word(s): Quarter Results

06.05.2013 / 08:00


mybet profits from strong online growth in first quarter of 2013

- Strong growth for online sports betting, casino and poker

- Loss of income following disposal of lottery operations more than made good

- Investment in acquisition of new customers and IT infrastructure to safeguard future growth

Kiel, May 6, 2013 - mybet Holding SE (Deutsche Börse, Prime Standard, ISIN DE000A0JRU67) more than compensated for the loss of income from the lottery operations sold off in 2012 thanks to strong growth for core business involving the products sports betting, casino and poker in the first quarter of the 2013 financial year. Revenue rose 8.0 percent in the first three months of 2013, from EUR 18.5 million at the corresponding point in 2012 to EUR 20.0 million.

Online sports betting business performed particularly strongly: betting stakes placed on the Internet platforms of the mybet Group were up 28 percent to EUR 26.3 million (previous year EUR 20.6 million). Thanks to a higher bookmaker's margin, the hold even enjoyed overproportional growth of 45 percent to EUR 4.4 million (previous year EUR 3.0 million). Overall growth in the Sports Betting segment was held back by weaker business in the betting shops, which was attributable to teething troubles with new shop software needed for sales operations in licensed markets. The betting stakes in the shops fell by 14 percent to EUR 21.7 million in the first quarter. The hold for the shops was nevertheless on a par with the previous year at EUR 6.3 million thanks to the improved bookmaker's margin.

In the first quarter of 2013 mybet again increasingly seized opportunities to extend its market position and step up its efforts to acquire new customers. The number of registrations consequently rose by 52,000 during the first quarter of 2013 to a present 1.1 million. The average of 57,500 active online customers in the period was some 54 percent up on the prior-year quarter, when around 37,300 customers were active on at least one occasion.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell from EUR 3.0 million in the previous year to EUR 0.8 million in the first quarter of 2013 as a result of the loss of income from lottery operations along with increased investment spending on marketing and on the technical infrastructure. EBIT came to EUR 112 thousand (previous year EUR 1,789 thousand). Consolidated earnings for the first three months of 2013 reached EUR 389 thousand (previous year EUR 1,057 thousand), and earnings per share were EUR 0.01 (previous year EUR 0.05).

Cash and cash equivalents totalled EUR 11.6 million at March 31, 2013 (December 31, 2012: EUR 14.9 million). Among other factors, the decrease was driven by the provision of securities for a licence on Cyprus (EUR 560 thousand) that has now been granted, and by the buildup of receivables from payment services providers at the closing date (EUR 1.5 million) as well as other receivables. Other targets of investment spending were the development of new business for casino and poker products in Italy and Spain, and the expansion of the systems infrastructure.

The equity ratio of 64.8 percent was on a par with the year-end level at December 31, 2012.

Outlook

The increased investment outlay for marketing and IT in the first three months of the financial year have prepared the way for further growth and increased profitability. The company moreover has a very good corporate structure in human resources and organisational terms.

The process for the awarding of Germany-wide sports betting licences under the new State Treaty on gaming (E-15) is entering the decisive phase. mybet submitted a comprehensive licence application to the Hesse Ministry of the Interior in January 2013, ahead of the deadline, and in an objective assessment believes it satisfied all the minimum requirements. However observers of the licensing process have commented that the requirements laid down in the bidding process were to some extent misleading and contradictory, resulting in misinterpretations. For example, according to media reports in March 2013 the Hesse Ministry of the Interior held initial hearings involving initially only 14 companies, at which further-reaching issues were explored. mybet - along with other market-leading companies - was not involved in the first wave of hearings. However it is expected that the ministry will hold further hearings. An initial lawsuit brought before the Hesse Administrative Court to achieve precisely this was successful. mybet still firmly expects to be granted one of the nationwide licences.

In the second quarter mybet will benefit to an increasing degree from the investment outlay of the first quarter. The goal is to improve profitability further while maintaining the high growth in the core business areas Sports Betting and Casino & Poker. The first flagship stores to be operated by mybet in its own right are to scheduled to open in the course of 2013. mybet's aim is to open a total of around 50 to 60 of its own shops in Germany in the next two to three years.

The company's expectations for the 2013 financial year as a whole remain unchanged, with consolidated revenue forecast to reach EUR 80.0 to 87.0 million. Based on the healthy corporate structure, growth in the operating result is expected to be clearly overproportional to revenue. The Management Board expects EBIT of between EUR 2.5 and 3.0 million.

Key figures for Q1 2013

  Q1 2013 Q1 2012 Change
  EUR '000 EUR '000 %
Gross revenue 62,161 60,185 +3.3
Revenue 19,969 18,491 +8.0
Sports Betting 11,031 9,696 +13,8
Casino & Poker 6,611 4,746 +39,3
Lotteries 898 2,617 -65.7
Horse Betting 1,065 1,382 -22.9
EBITDA 805 3,040 -73.5
EBIT 112 1,789 -93.7
Consolidated earnings 389 1,057 -73.8
Earnings per share (EUR) 0.01 0.05  
       
  31/03/2013 31/12/2012  
Cash holdings 11,603 14,884  
Shareholders' equity 28,925 28,520  
Equity ratio 64.8 % 64.9 %  
 

The Report on the First Quarter will be made available for downloading on Wednesday, May 8, 2013 on the websites www.deutsche-boerse.com and www.mybet-se.com.

About mybet:

mybet Holding SE (formerly JAXX SE), established in 1998, is a financial holding company with holdings in companies in the European gaming industry. mybet Holding SE currently holds interests in companies in Germany, Austria, Spain, Italy, Belgium, Gibraltar and Malta. mybet Holding SE has its headquarters in Kiel. The group's focus is on the products sports betting, casino and poker, which are offered on the Internet at www.mybet.com and www.mybet.de as well as in betting shops. The shares of mybet Holding SE have been listed on Deutsche Börse since 1999 under ISIN DE000A0JRU67.

Contact:
mybet Holding SE
Investor Relations & Corporate Communications
Stefan Zenker
Tel. +49 (40) 85 37 88 47
Fax +49 (40) 85 37 88 30
Mail stefan.zenker@mybet.com


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209690  06.05.2013