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mybet plans to accelerate growth in 2013

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

28.03.2013 / 15:13

mybet plans to accelerate growth in 2013

- Consolidated revenue up 14 percent in 2012 to EUR 69.2 million

- Revenue to rise by between 15 and 25 percent in 2013

- Improved operating result of EUR 2.5 to 3.0 million expected

Kiel, March 28, 2013 - Kiel-based mybet Holding SE (formerly JAXX SE, Deutsche Börse Prime Standard; ISIN DE000A0JRU67) increased its revenue by 14 percent in the 2012 financial year to EUR 69.2 million (2011: EUR 60.7 million). Thanks to the sale of German lottery operations, earnings before interest and taxes (EBIT) improved from EUR 1.6 million in 2011 to EUR 7.2 million in 2012. The sale brought in divestment proceeds of EUR 7.7 million. The net profit for the year climbed from EUR 1.5 million in the previous year to EUR 6.2 million in 2012. That corresponds to earnings per share of 25 cents (2011: 6 cents).

Sports betting again made the biggest contribution to consolidated revenue in the 2012 financial year; it accounted for 49 percent of the total for the group. Sports betting revenue rose 34.5 percent to EUR 33.8 million, compared with EUR 25.1 million in 2011. Across all sales channels there was a slight year on year improvement in the bookmaker's margin from 17.2 percent to 17.5 percent. Growth was held back by weak margins in September and December.

Strong customer growth in the core segment Sports Betting

The revenue increase in the Sports Betting segment was driven by strong growth in new customers and significantly higher revenue per capita. The number of online registrations rose by 186,000 over the year, to 1,048,000. The number of online customers, defined as those active at least once a month, increased from 17,400 to 22,400. The average betting stakes per active customer went up from EUR 298 to EUR 338. Overall, betting stakes on mybet's Internet platforms increased by 45.2 percent to EUR 90.5 million (2011: EUR 62.3 million).

As a result of optimisation of the shop structure, the number of betting shops under the mybet franchise slipped to 443 (2011: 501) as at the end of 2011. Of this total, 232 were in Germany (2011: 275). Meanwhile improved profitability meant the betting stakes placed in the shops rose by 26.3 percent to EUR 95.6 million (2011: EUR 75.7 million). Along with the increasing liberalisation of the German betting market, mybet has plans to step up investment in its own shops.

Still-difficult market environment in Spain weighs on lottery operations

Revenue from casino and poker games climbed by 26.7 percent to EUR 21.7 million (EUR 17.1 million) in the 2012 financial year. The Horse Betting segment's revenue increased by 17.3 percent to EUR 5.7 million (2011: EUR 4.8 million). The proceeds from lottery products fell 54.4 percent to EUR 6.2 million due to the still-difficult market environment in Spain and the disposal of German-language lottery operations.

In May 2012 mybet had sold its former core business area operated under the JAXX brand for EUR 12.5 million, in anticipation that lottery agency business would bring in sharply declining margins following the reorganisation of the German gaming market. mybet believes that the isolated business model of lottery agency business can no longer work profitably given the prevailing conditions in Germany.

The liquidity position of the mybet Group has improved significantly through the sale of the lottery operations. The level of cash and cash equivalents rose from EUR 7.2 million to EUR 14.9 million over the course of 2012. The equity ratio rose from 60.7 percent to 64.9 percent.

Schleswig-Holstein licence gains in significance

The first quarter of 2013 got off to a very promising start for the mybet Group. A comprehensive range of bets on offer, good customer values and sound margins provided a boost to revenue in January and especially February. In regulatory terms 2013 is again expected to be an interesting year. The German federal states are planning to award the first nationwide licences for sports betting based on the State Treaty on gaming. mybet expects to be among the licensees.

Further legal disputes are certainly to be expected before the European Court of Justice rules on whether the German regulatory model is compatible with EU law. No ruling is expected before 2014. The Schleswig-Holstein licences for sports betting, casino and poker will thus become even more important - and valuable. mybet will use this phase to further consolidate and extend its position in the most important European market in strategic terms.

Management Board expects above-average profit performance

'The mybet Group is outstandingly well equipped to respond to the further development of the market,' commented Matthias Dahms, Management Board spokesman of mybet Holding SE. 'It has a very good corporate structure in human resources and organisational terms. The healthy net worth and financial position provide a sound basis for the financing of further growth. The clear positioning in the Sports Betting, Casino and Poker product segments as well as the focus on the liberalising German market and on high-growth countries in Continental Europe offer very good opportunities for the mybet Group to develop successfully.'

For the 2013 financial year, the company expects revenue growth to be well into double figures of probably between 15 and 25 percent, which will outstrip the market's forecast growth. The Management Board thus anticipates consolidated revenue of between EUR 80.0 and 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 2012

  2012 2011 Change
  EUR '000 EUR '000 %
Gross revenue 240,593 190,152 +26.5
Revenue 69,195 60,686 +14.0
Sports Betting 33,764 25,096 +34.5
Casino & Poker 21,671 17,100 +26.7
Lotteries 6,236 13,667 -54.4
Horse Betting 5,685 4,847 +17.3
Net gaming revenue 68,312 60,128 +13.6
Other operating income* 10,392 1,466 +608.9
EBITDA 10,992 6,871 +60.0
EBIT 7,248 1,633 +343.9
Consolidated earnings 6,108 1,499 +307.5
Earnings per share (EUR) 0.25 0.06 +316.7
  31/12/2012 31/12/2011  
Cash holdings 14,884 7,187  
Shareholders' equity 28,520 22,763  
Equity ratio 64.9 % 60.7 %  


*The other operating income for 2012 includes the divestment proceeds of EUR 7.7 million from the disposal of German-language lottery operations in the second quarter of 2012.

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.

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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205576  28.03.2013