Bet-at-home revenue down in Q3 despite sports-heavy period

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first_img Subscribe to the iGaming newsletter 9th November 2020 | By Robin Harrison AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Betting and gaming levies for the period came to €16.1m, and after €3.4m in value added tax (VAT), net revenue for the nine months came to €73.5m, down 16.4%.  Betclic Everest Group subsidiary Bet-at-home said the summer’s packed sporting schedule positively impacted its performance in the third quarter, though revenue for the year to date remains below 2019 levels. Tags: Bet-at-home This came on total stakes of €636.1m for the third quarter alone, and €2.10bn for the nine-month period (a 13.9% decline). Topics: Casino & games Finance Sports betting Online casino Q3 results 2020 Online sports betting While online gaming was not impacted by the novel coronavirus (Covid-19) pandemic, it reported a drop in revenue as a result of tighter regulatory controls, which forced the operator to withdraw from the Swiss market in 2019.  However, this is likely to decline in 2021, it warned, as a result of regulatory conditions imposed for Germany’s online sports betting and casino markets.  Bet-at-home revenue down in Q3 despite sports-heavy period After €1.5m in amortisation and depreciation charges, earnings before interest and tax were down 15.6% at €21.6m. While €72,000 in financial outgoings saw pre-tax profit fall to €21.5m, a 64.2% drop in income taxes, to €7.1m, resulted in net profit for the nine months to 30 September increase sharply, to €14.4m.  Email Address It received a sports betting licence from the Regional Council of Darmstadt last week, and can take advantage of a transition period in which the business can offer heavily restricted forms of slots and poker. center_img Looking ahead, the operator said that while it remains on track to generate between €120m and €132m for the 2020 calendar year, and EBITDA of between €23m and €27m.  Bet-at-home noted that it has removed table games and implemented the €1,000 limit for the casino products by the 15 October deadline, as it aims to secure a licence once the Glücksspielneuregulierungstaatsvertrag (GlüNeuRStV) comes into force from July 2021. Revenue for the nine months to 30 September came to €93.0m (£84.0m/$110.6m), down 12.9% year-on-year. Based on the first half revenue of €62.3m, this suggested the operator generated €30.7m in the three months to 30 September.  This will require operators to limit customer spending to €1,000 per month, with limited scope to offer a small number of sportsbook customers higher limits of €10,000 or €30,000.  “This significantly increased legal certainty for business operations in Germany, however, means that, from the current perspective, the management board for the expects a decline in gross betting and gaming revenue of around €20m in the financial year 2021, compared to the financial year 2020.”  However the sporting cancellations in the first half saw both stakes and revenue for betting fall year-on-year, with customers wagering €303.9m and winning €269.5m, for gross revenue of €34.4m, a 21.1% drop.  “From today’s perspective, this results in a decrease in EBITDA of around €13m in the financial year 2021.” Regions: Central and Eastern Europe Western Europe Germany Austria Q3 results 2020 This contributed to amounts wagered on casino, live dealer games, and virtual sports falling 12.4% to €1.79bn, which after customer winnings left gross revenue of €58.6m.  Looking at performance by vertical, Bet-at-home said that it benefitted by a number of major sporting events taking place in the third quarter, in what had traditionally been a quieter period for the business.  Bet-at-home recorded €1.1m in additional income, while personnel expenses for the period rose to €14.6m. While marketing costs were down 27.1% at €21.4m, and other operating expenses fell to €15.6m, the decline in revenue resulted in earnings before interest, tax, depreciation and amortisation (EBITDA) fell 14.6% to €23.0m. last_img

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