Marketing cost reductions boost bet-at-home profits
German online operator records EBITDA of 11.1m after cutting marketing costs by 37.8%
Betclic Everest Group subsidiary bet-at-home recorded EBITA of 11.1m for the nine months ended 30 September 2013m, following a significant reduction in marketing spend.
The Frankfurt-listed company saw EBITDA increase to 11.1m for the period, a rise of 13.5m compared to a loss of 2.4m in the same period last year.
Gross gaming revenue (GGR) fell to 61.8m, down from 62.2m during the same period last year, a decline the operator blamed on the lack of a major summer sporting event.
A 37.8% year-on-year decline in marketing expenses was able to offset the slight revenue fall and the negative impacts of the German sports betting tax introduced in July 2012, which led to betting fees and gambling levies increasing from 7.1m in 2012 to 8.1m.
Bet-at-home investor relations manager Klaus Fahrnberger told eGaming Review this morning that the company’s marketing strategy had become “more efficient” and had focused on more profitable regions and advertising channels. However, he explained that marketing spend would increase next year as a result of the 2014 FIFA World Cup.
In an attempt to boost revenues, the operator announced it is looking to apply for licences in new markets and plans to launch a mobile gaming product, which will focus on sports betting and live betting, on iOS and Android in the near future.