Bet-at-home profits up 19% after marketing cuts
Double-digit revenue growth and a fall in marketing expenditure boosts the Betclic Everest Group subsidiary's 2015 profits
Bet-at-home today reported a 19% year-on-year increase in full-year profits following strong revenue growth and a double-digit drop in marketing spend.
According to financial results released this morning, the Betclic Everest Group subsidiary’s EBITDA for the 12 months ended 31 December was ?31.7m, up from ?26.7m on the previous year.
Profits at the Frankfurt-listed company were boosted by a 14% year-on-year increase in gross gaming revenues (?121.6m), with the biggest share (?34.1m) generated in Q4 2015.
The increase in revenues led to higher betting and gaming levies of ?14.5m, up from ?12.3m compared to 2014, but was offset by a larger drop in marketing spend.
The operator’s marketing expenses for the 12-month period decreased 11% year-on-year due to the lack of a major football event during the period.
“Due to our increasing profession to extend customer values and average revenues per user, bet-at-home.com nowadays is able to increase gross gaming revenues even in years without major sporting events,” bet-at-home’s investor relations manager Klaus Fahrnberger told eGaming Review.
“Therefore the gross gaming revenue in 2015 compared to the already strong financial year 2014, including the football World Cup in Brazil, once more increased by 13.6% up to ?121.6m,” he added.
Bet-at-home’s share price was ?103.05 on the Frankfurt Stock Exchange (Frankfurter Wertpapierb?rse) at the time of writing.