Mybet, one of Europe’s largest online sports betting and gambling providers, reported a continual negative trend in its revenue for 2016. The German betting operator released a short statement on Wednesday warning its investors that the preliminary read of its financial results for the period ending September 30 indicated revenue of roughly €35 million.
The company reported its Q3 earnings confirmed the negative revenue trend from its first two quarters of 2016 continues. Mybet deems its initial forecast for FY16 revenue “no longer realistic.” The company originally expected to end the financial year with revenue ranging between €59 million and €62 million. After the preliminary read of its Q3 revenue, the operator estimated it was more likely to end FY16 with revenue ranging between €43 million and €46 million. This corresponds to a difference of €16 million.
Mybet insisted it still expected to end the year with a “positive low-seven-figure” revenue thanks to the sale of its stake in the Pfederwetten.de racebook this past June. The German operator sold its stakes in the race betting business for the sum of €10 million.
Mybet reported a net profit of €4.2 million for the first half of 2016 with a 16% revenue decline to €24 million. The decrease was attributed to a decline in the number of players on the operator’s sportsbook and casino offerings. Had it not been for the Pfederwetten sale, the company would have recorded a net loss amounting to €2.3 million.
The company’s Q2 results showed a 17% decrease in its sports betting revenue. Mybet earned €6.9 million in Q2 despite the impact of Euro 2016. The revenue drop was attributed to the company’s faltering Greek market business. The German betting operator discontinued its poker operations in June 2016 which caused its casino products revenue to go down 31% to €4 million. Mybet’s sports betting operations in Ghana and Belgium contributed €500,000 to its Q2 revenue.
The year of 2016 has been rough for the German operator as the company’s CEO, Zeno Ossko, resigned from his position in July to be replaced by Markus Peuler, who has temporarily taken the responsibilities of both CEO and CFO.
Last week, the company announced it had reached an agreement with an unnamed party for the proceeds from mybet’s 2014 lawsuit against the German Lottery and Pool Organization. A mybet subsidiary was awarded the sum of €11.5 million as a compensation for the “illegal boycott of its business” on behalf of the German Lottery and Pool Organization. The latter appealed the judgment.
The agreement comes in the form of a €4 million credit facility and requires the betting operator to repay loans taken via the credit facility at a 150% rate. If the court case is not resolved within a year after the loan is drawn, the return rate might jump to 200%.
Mybet remains hopeful its new digital platform will potentially discontinue the negative trend in revenue. The company was expected to introduce the platform before the start of Euro 2016, yet it debuted in mid-August. At the present moment, the website remains in beta mode as mybet is still in the process of testing the platform and working out its flaws.
