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Sports betting provider mybet reports successful first six months and substantiates annual forecast for 2012

mybet Holding SE / Key word(s): Half Year Results

15.08.2012 / 08:24

Sports betting provider mybet reports successful first six months and substantiates annual forecast for 2012

- Record betting stakes in the second quarter and strong customer growth as a result of the UEFA European Championship

- EBIT of EUR 7.7 million from the sale of the lottery operations

- Substantiation of 2012 forecast for revenue of EUR 65 - 70 million and positive earnings

Kiel, August 15, 2012 -- mybet Holding SE (formerly JAXX SE; German Stock Exchange (Deutsche Börse), Prime Standard, ISIN DE000A0JRU67) today published its report on the first six months of 2012. According to this, consolidated revenue in the first half of the year rose by 21 percent to EUR 34.3 million (previous year EUR 28.4 million). Gross revenue, which also shows the betting stakes, increased by 40 percent to EUR 124.5 million (previous year EUR 89.2 million) thanks to the record figures during the UEFA European Championship. The absence of revenue from the lotteries area disposed of in May is already taken into account in the growth figures.

In the second quarter, the mybet Group's consolidated revenue at EUR 15.8 million was around 20 percent up on the previous year (EUR 13.2 million). Gross revenue climbed by 47 percent from EUR 43.6 million to EUR 64.3 million.

Sports betting made a significant contribution to the continuing high growth rate. The European Championship in Poland and the Ukraine provided record betting stakes on the mybet platforms and in the betting shops, and led to a substantial increase in user numbers. The number of registered users rose by 56,000 to 959,000 in the second quarter. More than 23,000 customers on average per month placed a bet online during the second quarter, and the figure reached 27,000 in June. In the comparable prior-year period, the figure was just 16,000.

Betting stakes thereby rose by 66 percent in the second quarter to EUR 51.7 million. The hold was doubled to EUR 7.2 million due to better margins. In a six-month comparison, betting stakes grew by 49 percent to EUR 97.6 million, while the hold rose by 62 percent to EUR 16.5 million (previous year EUR 10.2 million).

The successful marketing campaign for the European Championship temporarily impacted the operating result, but it forms the basis for further revenue and earnings growth in subsequent quarters. After the first six months, mybet again achieved a break-even operating result despite the planned intensification of customer acquisition and higher dividend distributions.

The disposal of the lottery segment in German-speaking countries resulted in other operating income of EUR 7.7 million (deconsolidation profit), leading to earnings before interest and taxes (EBIT) of EUR 6.0 million in the second quarter (previous year EUR -0.4 million). EBIT for the first six months was EUR 7.7 million (previous year EUR -142 thousand).

The deconsolidation profit is the result of the sale of companies and assets at a price of EUR 12.5 million, which is countered by expenses from the write-down of goodwill and assets amounting to around EUR 4.8 million. mybet Holding received EUR 8.0 million, the majority of the purchase price, in the second quarter; a further instalment of EUR 1.0 million is due at the end of the third quarter. The remaining EUR 3.5 million will be paid in instalments over the next six years.

Cash and cash equivalents at the balance sheet date of June 30, 2012 amounted to around EUR 14.9 million (December 31, 2011: EUR 7.2 million). This includes the disposal of around EUR 1 million attributable to the disposal group.


In the second half of 2012, the start of the European football league season will boost the sports betting business. The experience of previous years shows that particularly strong revenue and earnings growth can be expected in the fourth quarter. The licensing in Schleswig-Holstein will also enable mybet to strengthen its marketing. mybet is thereby continuing to pursue the strategy of favouring efficient direct marketing above excessive branding campaigns in order to maintain customer acquisition costs at a healthy ratio to growth.

From a regulatory perspective, mybet is entering calmer waters. Since July 1, 2012, the new State Treaty on gaming has been in effect, which contains a nationwide licence model for sports betting and clear tax regulation. However, the new regulation also raises legal issues on the form of the licences. The continuance of the sports betting licence in Schleswig-Holstein will be particularly helpful.

In terms of earnings development, the Management Board has had reservations to date about the high tax burden on betting stakes, which are taxed at 5 percent nationwide since July 1 according to the revised Racing Betting and Lottery Law. However, it is emerging that the providers of sports betting in Germany are passing this tax directly on to the customer, and it will therefore have a minimal negative effect on earnings.

Due to the strong revenue growth in the first half of the year and the clarified regulatory and economic prospects of the mybet Group, the relatively broad guidance to date for the 2012 financial year on the upper forecast range can be substantiated. The Management Board now anticipates revenue of between EUR 65 and 70 million and EBIT of between EUR 9.0 and 10.0 million, of which EUR 7.7 million is attributable to the deconsolidation of the lotteries area. In subsequent years, a continuous increase of profitability is expected.

Key figures for H1 / Q2:

  6M 2012 6M 2011 +/- Q2 2012 Q2 2011 +/-
Gross revenue 124,511 89,235 +39.5 64,326 43,628 +47.4
Revenue 34,298 28,419 +20.7 15,807 13,151 +20.2
Sports betting 17,122 10,546 +62.4 7,426 3,869 +91.9
Casino & Poker 9,917 9,065 +9.4 5,171 4,697 +10.1
Lotteries 3,991 6,322 -36.9 1,374 3,158 -56.5
Horse betting 2,929 2,042 +43.4 1,547 1,263 +22.5
Net Gaming Revenue (NGR) 33,933 28,125 +20.7 15,625 13,002 +20.2
Other operating income* 8,496 822 +933.6 8,134 592 +1.274.0
EBITDA 9,995 2,031 +392.0 6,956 755 +821.0
EBIT 7,741 -142 n/a 5,953 -400 n/a
Consolidated earnings 6,530 -171 n/a 5,531 -246 n/a
Earnings per share (EUR) 0.28 -0.01   0.23 -0.01  
  30/06/12 31/12/11        
Cash & cash equivalents 14,920 7,187        
Shareholders' equity 28,906 22,673        
Equity ratio 65.6 % 60.7 %        


*Other operating income includes the deconsolidation profit from the disposal of the lottery business in the second quarter of 2012 amounting to EUR 7.7 million

The Quarterly Report will be published and available for downloading today 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 through betting shops. The shares of mybet Holding SE have been listed on the German Stock Exchange since 1999 under ISIN DE000A0JRU67.


Stefan Zenker
Investor Relations & Corporate Communications
Tel. +49 (40) 85 37 88 47
Fax +49 (40) 85 37 88 30
Mail: stefan.zenker@mybet.com
Web: www.mybet-se.com

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181724  15.08.2012