mybet misses targets for 2013, ends financial year with a negative EBIT of EUR 10.2 million
mybet Holding SE / Key word(s): Preliminary Results
28.03.2014 08:01
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
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mybet misses targets for 2013, ends financial year with a negative EBIT of
EUR 10.2 million
- Extensive special write-downs weigh on result for 2013
- Provisions and non-recurring effects also have negative effect
- Consolidated revenue down 2.5 %
- New Management Board and Supervisory Board under new leadership
spearheading turnaround
Kiel, March 28, 2014 - mybet Holding SE (Deutsche Börse Prime Standard;
ISIN DE000A0JRU67) today publishes its provisional, unaudited key figures
for the group for the 2013 financial year. These show that the revenue of
the mybet Group slipped by 2.5 percent to EUR 67.0 million (previous year
EUR 68.8 million). However the Sports Betting and Casino + Poker segments
achieved slight growth. Additional write-downs, provisions and other
effects mainly of a non-recurring nature produced a negative EBIT of EUR
10.2 million.
Adjustment of activities
Revenue for lotteries declined by 49 percent to EUR 3.2 million (previous
year EUR 6.2 million) following the sale of the JAXX platforms in the
previous year and the continuing negative performance of the Spanish
subsidiaries.
In order to focus on sports betting and casino products, the Spanish
lottery business is to be disposed of in the course of 2014. The Spanish
companies were already deconsolidated with effect from November 30, 2013.
Loss-making sports betting business in Italy also added to the pressure.
The company is currently working on a solution. The loss of the French
online market due to regulatory aspects additionally weighed on the result.
Provisions and non-recurring effects
A number of non-recurring effects which added up to EUR 7.3 million weighed
on the result for the 2013 financial year. As well as restructuring
expenditure of EUR 0.9 million, provisions totalling EUR 3.5 million were
created as a precaution for litigation costs and possible additional claims
for gaming levies. The expenditure also includes provisions in the low
six-digit range for the lawsuit by the Management Board member Stefan Hänel
dismissed in October 2013.
Loans, goodwill and participating interests totalling EUR 2.4 million were
written down along with the deconsolidation and remeasurement of the
business potential of the Spanish companies, and a deconsolidation expense
of EUR 0.5 million was booked.
Declining consolidated revenue
Despite the overall downturn in consolidated revenue, there was a stand-out
positive performance by online business in the Sports Betting segment at
www.mybet.com and www.mybet.de with 21 percent year-on-year growth in the
hold (betting stakes less betting winnings) to EUR 14.0 million (previous
year EUR 11.6 million). The hold of the shop business fell by 13 percent to
EUR 17.8 million (previous year EUR 20.5 million) due to system instability
issues at the start of 2013 and the quality-led consolidation of the
franchise structure. Total revenue for the segment in the 2013 financial
year came to EUR 33.3 million (previous year EUR 33.3 million).
Revenue from casino and poker products increased by 8 percent to EUR 23.4
million (previous year EUR 21.7 million) despite the cessation of French
activities because of regulatory matters.
Revenue for the Horse Betting segment dipped slightly to EUR 5.6 million
(previous year EUR 5.7 million) but profitability improved. The interest in
pferdewetten.de AG was reduced to 52.2 percent at the end of 2013 through
the sale of shares. The strategic relevance and role of the participating
interest within mybet is currently being assessed.
Liquidity
With an equity ratio of 49 percent (previous year 65 percent) and financial
resources totalling EUR 9.7 million (previous year EUR 14.9 million), of
which the amount of EUR 5.0 million is not freely available, the leeway of
the mybet Group is currently limited. The Management Board is considering
whether to improve the group's capital base through the placement of a
convertible bond, the disposal of operations and participating interests or
other financing measures. The aim behind raising extra financial resources
is to give the company extra leeway for action, among other reasons against
the backdrop of Germany-wide sports betting licences (E 15) being awarded.
On the product side, too, the company is planning to invest in the areas of
quality and innovation. Furthermore it plans to build up sufficient
financial reserves to make the company less susceptible to seasonal
fluctuations and non-recurring effects.
Outlook
After a deeply unsatisfactory 2013 financial year, the mybet Group will now
concentrate on the tasks required to set its house in order once again, and
also on its operational core skills in the sports betting and casino areas.
Alongside cost-cutting programmes and halting the outflow of liquidity for
activities that are not achieving the desired results, the new Management
Board and the Supervisory Board under new leadership are moreover seeking a
sustainable turnaround, to be achieved through focusing on the activities
as described above. To accompany this drive, a new calibre of transparency
and communication is to be established.
The mybet Group is already beginning to reap the first fruits of this new
approach in the first quarter of 2014, which got off to a
better-than-expected start. So far, the performance in the new year can be
described as promising. The new Management Board expects slight revenue
growth to between EUR 70 and 75 million for the 2014 financial year. On the
earnings side, the target is a balanced EBIT.
Key figures for 2013
2013 2012 Change
EUR '000 EUR '000 %
Revenue 67,030 68,751 -2.5
Sports Betting 33,337 33,320 +0.1
Casino + Poker 23,419 21,671 +8.1
Lotteries 3,183 6,236 -49.0
Horse Betting 5,620 5,685 -1.1
Other operating segments 1,247 1,840 -32.2
EBITDA -5,417 10,992 n.a.
EBIT -10,210 7,248 n.a.
31/12/2013 31/12/2012
Cash + cash equivalents 9,673 14,884
Shareholders' equity 19,281 28,520
Equity ratio 48.7% 64.9%
The 2013 Annual Report with audited financial statements is expected to be
published in mid-April 2014.
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
28.03.2014 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: mybet Holding SE
Jägersberg 23
24103 Kiel
Germany
Phone: +49 40 85 37 88-0
Fax: +49 40 85 37 88-30
E-mail: ir@mybet.com
Internet: www.mybet-se.com
ISIN: DE000A0JRU67
WKN: A0JRU6
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of Announcement DGAP News-Service
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