Mybet delivers disappointing first quarter performance

European sports betting operator mybet has delivered a worrying first quarter 2017 report in which it details a continuing decline in corporate revenues and earnings.

Key performance indicators include:

– A 29 percent decline in revenues to Euro 8.9 million (Q1/2016: Euro 12.5 million) attributed to the temporary closure of its online casino product due to regulatory concerns.

– EBITDA of minus Euro 2.2 million (Q1/2016: minus Euro 800,000), a result the company said had been significantly impacted by the high number of customer-friendly sports betting results accumulated during February and March.

– Correspondingly EBIT was minus Euro 2.6 million (Q1/2016: minus Euro 1 million).

Markus Peuler, chief executive officer of mybet, said:

“In the first quarter the existing trend in the development of the business basically continued, since we had put our new platform into operation by the end of the quarter.

“However the sports results and the high number of won bets by customers connected with them formed an additional burden which we had never experienced this way during the last years.

“But in total the quarter clearly shows why we did not forecast a large growth in revenue for the financial year 2017 despite the new platform. We firstly have to break the downward trend.”

The full integration of mybet’s new platform, which has been developed in-house over the past two years, together with an out of court settlement with Westdeutsche Lottery GmbH & Co. for Euro 11.8 million, has prompted mybet to adjust operational plans and raise its earnings and liquidity forecast for the full year 2017.

The company forecasts revenue of between Euro 44.5 and Euro 47 million, EBIT of between Euro 4.5 and 5.5 million and a cash position at the end of the year of Euro 1 to 2 million.

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