mybet officials revealed that there was a chance the company to be put up for sale due to financial hurdles that are difficult to overcome. A few days ago, mybet had no choice but to sell its stake in pferdewetten.de, a popular German horse racing operator. The amount of €10 million was intended to keep the business liquid, but the sum turned insufficient.
However, people with knowledge of matter supposed that there was an underlying reason for the sale. They are not convinced that the sale was intended to raise enough cash, but it was made in an effort to streamline the business before an eventual takeover.
Zeno Ossko, CEO of mybet, commented on the idea of a potential sell-off and said that bearing in mind the current condition of the German market, the other operators should definitely consider the acquisition of mybet and send a bid should an opportunity arise. Mr. Ossko went on to say that the Tipico takeover, that cost €1 billion, would make mybet even more appealing to potential investors.
mybet has recently requested Montega AG, an equity research firm, to provide an external assessment of the company. mybet was valued at €24.6 million. Yet, Mr. Ossko said the company was trying to regain its positions on the market and overcome the negative consequences, caused by the unprofitable Q1.
mybet’s CEO added that company’s plan was to popularize its products on the German market and remained confident that mybet has all chances of becoming a leading provider.
In conclusion, he said that anyone who wanted to take a closer look at mybet was welcome. He did not deny that there was an option for the potential sale of the company and added that it might happen at some stage, but currently, mybet management was focused on making the platform a successful one.
As for the financial performance of mybet in Q1, a considerable decrease was reported. Cash and equivalents amounted to €4.6 million, which was almost one-third less than the numbers reported a year ago. The overall revenue was €14.9 million, 11% down YOY.
Pferdewetten was one of the few bright spots in Q1 as the horse betting revenue and sports betting in land-based venues saw an increase. However, casino games and online sports betting were the weak points as a rapid decline in revenue was registered.
The poor financial performance was attributed to the old platform the company uses. mybet has already taken actions towards its replacement, but unfortunately, the process will not be completed earlier than mid-July.
More at EGR Magazine.
