MyBet continues "turnaround" with 10% full-year revenue increase
German operator records revenues of 70.4m but delays publication of full 2014 financial report due to "unforeseen organisational constraints"
MyBet insisted its “turnaround” strategy remained on-track after posting a 10% like-for-like increase in full-year 2014 revenues, as well as a return to EBIT profit, in a truncated full year results announcement this morning.
Revenues for the 12 months ended 31 December totalled 70.4m compared to a revised 2013 figure of 63.8m – adjusted to take into account the company’s disposal of Spanish subsidiary DIGIDIS last summer.
The German operator also saw a return to profit with EBIT of 0.6m, a substantial improvement on the 11.3m loss it posted during the previous year.
However, the company failed to break-out figures for its land-based and online businesses after only publishing a truncated financial report, an event the operator attributed to “unforeseen organisational constraints”.
MyBet would only go as far to say its online business had been boosted by the release of new mobile applications and strong growth in horseracing, while its casino and poker verticals had suffered due to the “local regulation of some European markets”.
The firm said its full report should be published in “early April” while it also revealed recent changes to how VAT is applied within the EU, and specifically Germany, would cost the firm approximately 2m this year and projected 2015 EBIT of 0.5m.
“We introduced many new products and features, such as our customer card, betting terminals and new, improved, mobile applications,” Sven Ivo Brinck, MyBet CEO, said of last year’s achievements.
“In addition, we focused on improving our cost base. The performance in 2014 shows that we are on the right track [but] challenges are still ahead of us,” he added.
MyBet said its 2015 strategy would revolve around three key areas; brand, product and customer service, with the executive board yet to decide how much to invest in the former.
“If we decide after a positive test in the field of sports betting for the technological expansion of the product range, the upper end of our revenue forecast of 75m could be achieved or exceeded slightly at best,” Markus Peuler, MyBet CFO, said.
MyBet has gone through a period of restructuring over the past 12-18 months in a bid to “turnaround” the business.
As well as the sale of DIGIDIS, MyBet also disposed of its Italy-facing business, was forced to withdraw its sportsbook from the UK market due to a new licensing regime and saw a change of leadership with Brinck succeeding Mathias Dahms.
MyBet’s share price remained relatively flat at 1.22 on the German Stock Exchange after early morning trading.