mybet Holding SE publishes report on first quarter of 2014
DGAP-News: mybet Holding SE / Key word(s): Quarter Results
mybet Holding SE publishes report on first quarter of 2014
15.05.2014 / 08:25
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mybet Holding SE publishes report on first quarter of 2014
- Revenue down 8 percent
- Betting shop business recovers
- Improved cost basis leads to improved EBIT of EUR 327 thousand
- Full-year forecast confirmed
Kiel, May 15, 2014 - mybet Holding SE (Deutsche Börse, Prime Standard, ISIN
DE000A0JRU67) today publishes its report on the first quarter of the 2014
financial year. Consolidated revenue in the first three months fell by 7.8
percent, from EUR 19.5 million in the previous year to EUR 17.9 million.
However the slight growth of 1.2 percent in the Sports Betting segment to
EUR 10.7 million and the sustained business strength of the mybet
subsidiary pferdewetten.de AG (+35.8 percent to EUR 1.5 million) were not
enough to compensate fully for the downturn in casino business and the
discontinuation of the Lotteries segment. Nevertheless, thanks to an
improved cost basis earnings before interest and taxes (EBIT) went up from
EUR 112 thousand in the previous year to EUR 327 thousand in the first
quarter of 2014.
The first quarter brought a positive development in business in the sports
betting shops, which had suffered from various system failures in the
prior-year quarter. System stability improvements and the start of roll-out
of customer cards lifted betting stakes in the shops by 6.6 percent. Due to
a lower margin, the hold (betting stakes less payouts of winnings) rose by
only 1.6 percent to EUR 5.8 million. In online operations, betting stakes
declined by 2.5 percent because of a substantially scaled-back marketing
budget and a shift in its focus towards efficiency. The hold was a par with
the prior-year quarter at EUR 4.4 million.
Revenue for the Casino & Poker segment fell by 16.5 percent to EUR 5.5
million. The prior-year quarter still included revenue from French business
which had to be halted in mid-2013 due to a legal dispute. Following the
disposal of German-language business in 2012 and the deconsolidation of the
Spanish subsidiaries, the Lotteries segment was discontinued with effect
from the end of 2013. In the previous year the Lotteries segment
contributed revenue of EUR 898 thousand and EBIT of EUR -92 thousand to the
consolidated result.
Business for the Italian subsidiary mybet Italia did not develop as hoped
in the first quarter of 2014. The Management Board of mybet Holding SE has
therefore resolved to write off assets totalling EUR 715 thousand
retroactively from December 31, 2013. Negotiations on the sale of the
company are currently in progress. In the first quarter of 2014, Italian
business diminished consolidated EBIT by EUR -209 thousand (previous year
EUR -276 thousand).
In connection with the licensing process for the awarding of the 20
Germany-wide sports betting licences, the mybet subsidiary PEI Ltd.
submitted the supplementary documents as requested in good time on March
14, 2014. The Hesse Ministry of the Interior subsequently invited PEI Ltd.
to take part in the next phase of negotiations, when the social and safety
concept is to be presented in person. It remains unclear when the licences
will finally be awarded on a legally binding basis.
The liquidity position of the mybet Group has improved again in the first
quarter of 2014 compared with December 31, 2013. At the end of the quarter
the company had cash and cash equivalents amounting to EUR 9.5 million, of
which EUR 2.5 million is attributable to pferdewetten.de AG. At the end of
March, mybet Holding SE and the acquirers of the JAXX Group sold in 2012
reached agreement on the early payment of the balance of the purchase
price, less a discount of four percent. mybet Holding SE thus accrued a
total of EUR 2.8 million in liquidity.
The cash situation of mybet may improve further by quite a substantial
amount if the compensation claim against Westdeutsche Lotterie GmbH & Co.
OHG (Westlotto) becomes legally binding, as is expected. At the start of
April the Higher Regional Court of Düsseldorf had ordered Westlotto to pay
EUR 11.5 million in damages, plus interest, to a mybet subsidiary. No right
of appeal was granted. Westlotto notified the company through its lawyers
on May 9, 2014 that it has filed a complaint with the Federal Supreme Court
about the non-admission of an appeal. If the complaint is rejected, a cash
inflow of about EUR 15.1 to 15.5 million is to be expected at the end of
2014 / start of 2015.
Outlook
For sports betting providers, the weakest phase of the year starts in the
second quarter, when the Bundesliga season comes to an end. Betting stakes
and margins typically fall in the second quarter right across the industry,
then business picks up again at the start of the new season towards the end
of the third quarter. The fourth quarter is seasonally the strongest phase
in the yearly cycle of betting providers.
mybet Holding SE, too, has reflected this seasonal pattern in its corporate
planning and expects a negative result for the second quarter of 2014. The
outlook provided in the 2013 Annual Report, envisaging EBIT at break-even
and slightly higher revenue of EUR 70 to 75 million for 2014 as a whole,
remains valid and is unaffected by this development.
Key figures for Q1 2014
Q1 2014 Q1 2013 Change
EUR '000 EUR '000 %
Revenue 17,926 19,474 -8.0
Sports Betting 10,663 10,536 +1.2
Casino & Poker 5,522 6,611 -16.5
Lotteries 0 898 n.a.
Horse Betting 1,446 1,065 +35.8
Other 270 364 -270
EBITDA 885 805 +9.9
EBIT 327 112 +192.0
Net profit/loss for the period 234 389 -39.9
Earnings per share (EUR) 0.00 0.01 n.a.
31/03/2014 31/12/2014
Cash and cash equivalents 9,548 7,965
Shareholders' equity 18,535 18,306
Equity ratio 49.5% 47.4%
The Report on the First Quarter will be made available for downloading on
Thursday, May 15, 2014 on the websites www.deutsche-boerse.com and
www.mybet-se.com.
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
End of Corporate News
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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
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