German gambling operator mybet Holding SE and its subsidiary mybet Group reported a 15.2% drop in revenue for this year’s first nine months on the back of poorer than expected football results and regulatory challenges. Group revenue amounted to €34.7 million for the reviewed period, down from €40.9 million generated during the same nine month of the previous year.
The considerable decrease was attributed to unfavorable results during the UEFA Euro Championship, failed expectations for the start of Europe’s regular football leagues, and regulatory changes in Greece that hampered mybet’s operations in the Southern European country.
Group EBIT amounted to €4.2 million for the nine months ended September 30, up from negative EBIT of €6.4 million reported for the same period of 2015. The amount reported included the sale of the pferdewetten brand. Excluding contribution from the transaction, EBIT stood at a negative of €2.5 million.
mybet had a total of 1,606,408 registered customers by the end of the reported period, compared to 1,489,218 in 2015.
Sports betting revenue for the first nine months of the year totaled €21.4 million, down 16.2% from the same period of the previous year. Revenue from online betting operations was down 32.4% year-on-year. The decrease was to a certain extent offset by a 4.8% rise in the company’s retail business.
Sports betting stakes amounted to €114.3 million, down 7.5% year-on-year. Online stakes decreased 20.3% to €52.8 million. Stakes from mybet’s retail operations totaled €61.6 million, reflecting a 7.2% increase from the previous year.
Casino revenue dropped 23.8% to reach €11.7 million during the reviewed nine months. The substantial decrease was attributed to regulatory challenges the gambling operator faced in one of its key markets, Greece.
Last but not least, revenue from mybet’s B2B operations reached €1.6 million during the nine months ended September 30. The company’s B2B division currently provides gambling services for regionally licensed sports betting operators, mainly in Belgium and Ghana.
In August, the gambling operator soft-launched its new IT platform that now offers expanded sports betting and casino offering. mybet is currently transferring customers to the new platform and remedying malfunctions to prepare the product for official roll-out.
Commenting on the company’s performance and plans for the near future, CEO Markus Peuler said that the complete renewal of its product offering and internal systems will certainly result in improved results in the near term. The executive also added that the gambling operator will remain focused on reducing costs, investing in growth-promising areas, and working diligently to improve its overall financial performance.
