Bet-at-home Q1 profits leap 133%
Frankfurt-listed operator posts 8.3m profit following a 23% reduction in marketing spend
Betclic Everest subsidiary bet-at-home recorded a 133% year-on-year increase in earnings before tax (EBT) in Q1 2014 with the company seeing the benefit from its long-term cost-cutting strategy.
The Frankfurt-listed operator saw EBT rise to 8.3m in the three months ended 31 March 2014, up from 4.7m compared to the same period last year.
And despite a substantial 23% year-on-year reduction in marketing spend, gross gaming revenue increased 11% year-on-year from 22.7m to 25.2m, while gaming volume was also up 4% year-on-year to 495.2m.
Marketing spend totalled 7.7m in the quarter and other operating expenses were cut 11% year-on-year to 3.1m.
“This underlines even more the success of the customer acquisition and retention measures which have been undertaken, which resulted in a further successful strengthening of the bet-at-home brand,” Klaus Fahrnberger, bet-at-home investor relations manager, said.
“These measures have been made through marketing efficiency and by rethinking different marketing-channels and single country campaigns, as well as the focus on only one major sponsoring deal in the German Bundesliga, namely the premium partnership with Schalke04,” he added.
Bet-at-home’s share price at the time of writing was 44.3, down 0.8 on the day.