German gambling operator mybet Holding SE published earlier today its financial results for the first quarter of 2015. Overall revenue for the reported period increased 2.3% to €18.3 million.
The company’s largest division – sports betting – generated a total of €10.4 million, down 2.1% compared to what was posted a year ago. The gambling operator explained that the slight decrease is attributable to the fact that although betting stakes increased 13.8% year-on-year, this was not reflected in both earnings and revenue, due to the high winnings payouts.
Sven Ivo Brinck, Chief Executive Officer of mybet, said that they are disappointed with the customers’ activity not resulting in better financial performance. Yet, he pointed out that they are optimistic about the segment’s future prospects, as improvement in customer loyalty and, subsequently, in revenue is expected to be reported.
The company posted positive performance of its mobile segment. Revenue from online sports betting increased 14% during the reported period. mybet said it expects for this trend to have a very positive effect on its financial results.
Revenue from casino and poker operations rose 3.2% to €5.7 million. The amount of €5.5 million was posted for the same period a year ago.
Horse betting generated the amount of €2 million, up 40% compared to the first quarter of 2014. The company pointed out that it expects its horse betting division to further improve its growth in the months to come.
mybet attributed its financial results during the first quarter of the year to several factors. In the first place, the company undertook changes in its sales channels that proved to be cost-intensive. Although negative trends in commissions and margins were posted, mybet said that this are not expected to continue over the year as a whole.
The gambling operator pointed out that it will remain focused on its strategy to stabilize its business and to further improve its operational core skills.
Recently, mybet announced that it would work together with software developer amelco UK Ltd. in order to overhaul its sports betting product offering and to additionally improve and stabilize its systems. The two companies are expected to officially sign a contract in June.
The gambling operator pointed out that its new venture would be cost-intensive, but it expects the technology switch to result in a fast earnings and revenue growth in 2016.
