Cost-cutting sees bet-at-home profits soar
Betclic Everest-owned brand posts EBITDA of 15m after cutting marketing costs and improving customer retention
Frankfurt-listed operator bet-at-home has revealed a dramatic year-on-year increase in annual EBITDA, citing a significant reduction in marketing spend and improved customer acquisition strategies for the rise.
The Betclic Everest Group subsidiary posted EBITDA of 15m for the 12 months ended 31 December, up 13.2m from 1.8m in the previous year.
Gross gaming revenue (GGR) also increased slightly to 85.6m, a 0.2% increase from 85.5m in 2012 despite the lack of a major summer sporting event and a 10% fall in gaming volume.
Marketing expenses in 2013 dropped 31.5% to 50m which failed to lead to a decline in GGR following an uptake in players retention measures put in place.
Speaking with eGaming Review this morning, bet-at-home investor relations manager Klaus Fahrnberger said the company was pleased with the impact of its new marketing strategy.
“We had a clear strategy for 2013 which was to improve our marketing efficiency,” he said. “We looked at every single country where we operate and if the marketing wasn’t successful, we launched European campaigns instead.”
“We also increased our sponsorship initiatives in 2013,” Fahrnberger said. “We now have a very strong relationship with [FC] Schalke [04] through opportunities in the stadium and via TV coverage which is particularly important to bet-at-home.”
Bet-at-home’s latest full-year financial results mark a significant turnaround following a 63% year-on-year fall in net profits in 2012 after the company increased its advertising expenses from 40.81m to 50.02m for the European Football Championships.
The operator also highlighted the importance of the FIFA World Cup in Brazil for the company during 2014. “The World Cup is going to be huge and we have lots of activities in the pipeline,” Fahrnberger said.
“We plan to be just as efficient on marketing and we want a comparable EBITDA to the previous year,” he added.