mybet Holding SE / Key word(s): Quarter Results
07.11.2013 08:01
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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mybet Holding SE publishes Nine-Month Report
- Nine-month revenue up 3.3 percent to EUR 50.9 million
- Investment in new products and lower casino business weigh on
third-quarter earnings
- Revenue and EBIT forecast for 2013 as a whole revised
mybet Holding SE (Deutsche Börse, Prime Standard, ISIN DE000A0JRU67) today
publishes its report on the first nine months of 2013. The period under
review saw revenue increase by 3.3 percent to EUR 50.9 million. Earnings
before interest and taxes (EBIT) totalled EUR -4.0 million. EBIT for the
prior-year period of EUR 6.8 million was influenced by a non-recurring
effect amounting to EUR 7.7 million from the sale of the German-language
lottery operations.
In the third quarter of 2013 revenue came to EUR 15.6 million (previous
year EUR 15.0 million). EBIT was EUR -2.3 million (previous year EUR -1.0
million).
Business performance in the third quarter
Revenue in the core segment Sports Betting made very positive progress in
the third quarter of 2013: there was a 30.6 percent increase in revenue to
EUR 8.0 million (previous year EUR 6.1 million). Both betting stakes and
the revenue remaining after the payout of winnings rose much more sharply
for online operations than in the betting shops. The bookmaker's margin,
which represents the ratio between winnings paid out and betting stakes,
was slightly below the long-term average of 18.1 percent at 17.4 percent.
Increased investment was needed in the Sports Betting segment to accelerate
the development of new products that are designed to generate extra revenue
in the short term. The mybet betting terminals, the mybet customer loyalty
card and new mobile apps, for instance, are nearing market readiness. The
increased costs led to a drop in earnings for the segment from EUR -0.5
million in the previous year to EUR -1.5 million. Positive effects from the
cost-cutting programme launched in August will become apparent for the
first time in the fourth quarter.
The group's revenue growth was held back by a decline in business with
casino and poker games, which had to be halted in certain markets as a
result of regulatory intervention. The segment's revenue fell by 8.6
percent in the third quarter to EUR 5.1 million. EBIT was lower, at EUR 48
thousand (previous year EUR 317 thousand).
The Lotteries segment, which now comprises Spanish business following the
sale of German-language activities last year, contracted further due to the
continuing difficulties of the Spanish economy. Third-quarter revenue fell
by 16.7 percent to EUR 845 million (previous year EUR 1,015 thousand). The
loss was reduced slightly to EUR -293 thousand (previous year EUR -348
thousand).
There was a slight decrease in revenue from horse betting of 7.7 percent to
EUR 1.4 million (previous year EUR 1.5 million). However EBIT improved
significantly to EUR 206 thousand (previous year EUR 21 thousand).
Liquidity
Cash and cash and cash equivalents again fell due to the negative result
and reached EUR 8.3 million on September 30, 2013 (December 31, 2012: EUR
14.9 million). Of this sum, EUR 2.3 million is attributable to the 63.5
percent interest in pferdewetten.de AG and is therefore not available
group-wide. A further EUR 2.0 million is reserved as security for licences.
Monika Fiala appointed new CFO
Monika Fiala joined the Management Board of mybet Holding SE on November 1.
She takes over as CFO from Stefan Hänel, who left the company at the start
of October. A native of Austria, 48-year-old Fiala was previously the
long-standing Finance Director of the listed company update Sofware AG.
Outlook
Based on experience and recurring seasonal patterns, the fourth quarter is
the highest-revenue period of the year. European football leagues and
tournaments such as the Champions League and Europa League are in full
swing. The products of the mybet Group already brought in record-breaking
betting stakes of nearly EUR 20 million in October. However the bookmaker's
margin was a below-average 15 percent due to a string of wins by favourites
in virtually all European leagues and competitions.
In the course of the fourth quarter mybet plans to complete various
important projects that will unlock additional sources of revenue in the
short term. For example betting terminals and the personalised loyalty card
to boost customer loyalty in the shops will be launched shortly. The fourth
quarter will also see the initial effects of the cost-cutting programme.
The volatility of the mybet Group's business, mainly due to fluctuations in
the bookmaker's margin, renders it difficult to make a narrowly defined
economic forecast. Normally the fourth quarter, with its high levels of
betting stakes, determines whether the targets for the year will be met.
Due to the weak margins in October, as a precaution the Management Board is
revising its forecast for operating EBIT for the whole of 2013 to EUR -3.0
to -1.0 million. Revenue expectations are being scaled back from EUR 75 to
80 million to a lower EUR 70 to 75 million.
In light of the economic situation in Spain, it will moreover be necessary
to examine the soundness of various current and non-current assets.
Depending on the findings this could place an additional burden on
earnings, though there would be no impact on liquidity.
Key figures for 9 months / 3rd quarter:
<pre>
9M 2013 9M 2012 +/- Q3 2013 Q3 2012 +/-
EUR '000 EUR '000 % EUR '000 EUR '000 %
Gross revenue 179,965 176,873 +1.8 57,873 52,362 +10.5
Revenue 50,881 49,264 +3.3 15,610 14,966 +4.3
Sports Betting 26,013 23,223 +12.0 7,967 6,101 +30.6
Casino & Poker 17,453 15,449 +13.0 5,055 5,532 -8.6
Lotteries 2,683 5,006 -46.4 845 1,015 -16.7
Horse Betting 3,796 4,463 -14.9 1,416 1,534 -7.7
Net gaming revenue (NGR) 50,247 48,567 +3.5 15,392 14,634 +5.2
Other operating income* 1,225 8,772 -86.0 303 276 +9.8
EBITDA, adjusted** -1,451 1,958 n/a -1,398 -300 -366.0
EBIT, adjusted** -3,980 -971 -309.5 -2,347 -975 -140.7
EBITDA -1,451 9,696 n/a -1,398 -300 -366.0
EBIT -3,980 6,766 n/a -2,347 -975 -140.7
Consolidated earnings -2,672 5,227 n/a -1,896 -1,303 -45.5
Earnings per share (EUR) -0.12 0.22 -0.08 -0.06
30/09/13 31/12/12
Cash holdings 8,343 14,884
Shareholders' equity 25,892 28,520
Equity ratio 61.9 % 64.9%
</pre>
* The other operating income includes the divestment proceeds of EUR 7,738
million from the disposal of lottery operations in German-speaking
countries in the second quarter of 2012.
** EBITDA/EBIT adjusted to exclude divestment proceeds
The Nine-Month Report will be made available for downloading in the course
of today 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
07.11.2013 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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DGAP-Adhoc: mybet Holding SE publishes Nine-Month Report
| Source: EQS Group AG