Mybet online revenues slump 35% ahead of new platform integration
German operator to introduce mobile casino for the first time and quadruple sports betting options
Mybet revenues continued to decline in H1, but the company said it has laid the foundations for a turnaround following the introduction of a new technology platform.
The German operator today reported a 35.5% drop in H1 online revenues to 4.5m due to its old product’s lack of competitiveness and a weak market in Greece.
The group added: “Even the further continuing growth in the retail sports betting business and the European Football Championship taking place during the end of the reporting period could only partly counteract this primary trend.”
Group EBIT reached 4.8m, although after stripping out the cash injection from the sale of pferwetten.de, it was -1.8m, the same figure as H1 2015.
Group profit totalled 4.2m, which was also inflated by the pferwetten sale.
However, the company was confident it could reverse the downswing, announcing it had officially started the conversion process to its new IT platform after several delays.
“The new platform with a totally new visual design offers around four times as many sports betting options and doubles the number of casino games,” the company said in a statement.
The platform also introduces a mobile casino for the first time, offers new marketing functions and streamlines the registering and deposit process.
“The foundation for the operative turn-around of the mybet group was laid with the implementation of the new platform and the internal optimisations increasingly coming into effect,” said current CFO Markus Peuler, who will take over the CEO role on 1 September.
“This turn-around will not happen overnight and it will still be lots of work and a gradual process. But from now on it is promising to aim at this target,” Peuler added.
The company said its projected EBIT for the 2016 financial year was in the positive lower single-digit millions, including the pferwetten returns.