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mybet Holding SE: Stable earnings performance despite continuing decline in revenue in first nine months of 2016

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

2016-11-10 / 08:00
The issuer is solely responsible for the content of this announcement.

mybet Holding SE: Stable earnings performance despite continuing decline in revenue in first nine months of 2016

- Consolidated revenue still down year-on-year at EUR 34.7 million

- EBITDA stable despite reduced revenue base, EBIT not including one-off effects also at previous year's level

- Annual forecast for 2016 adjusted to consolidated revenue of between EUR 43 million and EUR 46 million

- Key interim targets for Group financing achieved due to conclusion of C4U sale and bridge-over financing for possible Westlotto compensation payments

- Conference Call on third quarter on 14 November 2016 at 11:30 a.m. (CEST)

Berlin, 10 November 2016. In the third quarter of the 2016 financial year, the mybet Group once again posted a year-on-year decline in consolidated revenue. Between January and September, a total of approximately EUR 34.7 million was generated from sports betting, casino and B2B business (PY: EUR 40.9 million), 15.2 percent less than in the same period of 2015.
The main factors behind this particularly included a lack of sustained impetus for online sports betting from the European Football Championship, the consequently relatively weak business development at the start of the European football leagues, and the fact that the revenue volume from the casino offerings unfortunately continued to decline significantly. Even with the encouraging continuing growth in revenue from stationary mybet betting shops and the stable profitable B2B business, the targeted improvement in the revenue development compared to the previous quarters still could not yet be achieved.

Stable development of operating earnings
Despite the significantly reduced revenue base, the mybet Group nonetheless achieved a stable year-on-year development in earnings before interest, taxes, depreciation and amortisation (EBITDA) in the first nine months of the current financial year. EBITDA amounted to around EUR -1.6 million (PY: EUR -1.5 million). Earnings before interest and taxes (EBIT) including the one-off effect from the sale of the investment in pferdewetten.de AG came to EUR 4.2 million, marking a very substantial improvement compared to 2015 (PY: EUR -6.4 million). However, the figure for the previous year had also been influenced by a one-off impairment loss. Not including these two one-off effects, the mybet Group also displayed a stable development in EBIT in the nine-month period. The mybet Group's net profit for the period between January and September 2016 amounted to approximately EUR 3.4 million (PY: EUR -4.4 million).

Viewed in isolation, the third quarter of 2016 recorded consolidated revenue of EUR 10.7 million (PY: EUR 12.1 million) and consolidated EBIT of EUR -0.6 million (PY: EUR -4.6 million).

"The stability achieved with regard to our operating earnings in spite of the lower revenue base is a key factor in preparing for the targeted turnaround of mybet. In addition to the automatically falling revenue-driven costs, this is primarily attributable to our cost control and optimisation measures. These form the basis for converting our ultimate goal of a lasting positive turnaround in revenue into profitability, too," explains Markus Peuler, CEO of mybet Holding SE.

In mid-August the newly developed IT platform with a significantly expanded range of sports betting and casino offerings was launched in a soft launch procedure. It is thus temporarily still available at ww.newmybet.com and not at the main domain www.mybet.com and will not be a factor in the business development to any significant extent until the changeover process has been completed.

Based on the business development described above, the Management Board adjusted its revenue forecast for 2016 to a range of EUR 43 million to EUR 46 million. The EBIT forecast remains unchanged with EBIT (including the effect from pferdewetten.de AG) in the positive low single-digit millions.

Key interim targets for Group financing achieved
The strained liquidity situation of the mybet Group over the whole of the year to date was improved after the end of the reporting period. Risk-free bridge-over financing for possible compensation proceeds from the ongoing Westlotto court proceedings with a volume of EUR 4.0 million that is repayable only in the event of a successful outcome, together with the long-awaited conclusion of the sale of the group company C4U-Malta Ltd. for a gross amount of EUR 3.6 million, resulted in significant improvements. While the Group's liquidity amounted to EUR 0.5 million as at 30 September 2016, it had reached around EUR 4.1 million by the time the quarterly report was published.

"In particular, the Westlotto financing that has often been brought up as an issue with us after its conclusion means primarily that mybet has practically already received EUR 4 million from the proceedings - regardless of their outcome. The financier's participation in possible proceeds of above EUR 4 million - and only in such additional proceeds - is arranged such that mybet will receive at least half of the potential compensation amount, no matter how high it is. In many scenarios, we will even be left with considerably more. So we are by no means forgoing the opportunity for potential significant additional proceeds and we are receiving risk-free financing at normal market conditions," comments Peuler.

mybet Holding SE's report on the third quarter of 2016 is published on the mybet Holding SE website at https://mybet-se.com/en/category/finanzberichte/.

Conference call for analysts and investors
The conference call for analysts and investors on the results for the third quarter of 2016 will be held on Monday, 14 November 2016 at 11:30 a.m. Access will be provided via the telephone number +49 (0)30 232531410.

mybet Holding SE
The mybet Group, licensed in several European countries to offer sports betting and online casino games, has its registered office in Berlin and locations in Hamburg, Cologne and Malta. mybet offers its betting and gaming products over the internet platforms mybet.com and mybet.de as well as at physical betting shops operating under a franchise system. In addition, the group supplies regional betting providers in Europe and Africa as a B2B service provider.
mybet Holding SE is the parent company of the mybet Group. The shares of mybet Holding SE (ISIN DE000A0JRU67) are listed on the Frankfurt Stock Exchange in the Prime Standard.
For further information, visit www.mybet-se.com

mybet Holding SE
Sebastian Bucher
Investor & Public Relations

tel +49 30 22 90 83 161
fax +49 30 22 90 83 150
e-mail sebastian.bucher@mybet.com

2016-11-10 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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