SBC News Decreased player activity & margin impacts hinder mybet H1 2015 performance

Decreased player activity & margin impacts hinder mybet H1 2015 performance

zeno
Zeno Ossko

A decline in player activity has impacted German sports betting operator mybet SE H1 2015 performance. Issuing a corporate update (period ending 30 June), the operator would record a 5.5% increase in group revenues to €36.3 million (H1 2014 – €34.4 million).

The increase in group revenues did not translate to positive earnings and profits performance which saw the operator post losses of €238,000, as mybet governance implemented structural changes to company operations during the period.

mybet governance stated that the changes undertaken would benefit the company’s future growth strategy by creating cost-intensive sales channels and better player life time revenues.

Further performance impacts had seen mybet record a decline in digital operating margins of -2.3%. The operator further detailed that it had seen a 10% decline in active player numbers to 114,500 (H1 2014 – 127,000) as mybet averaged 21,000 active customers per month.

Noting positives in its update, mybet governance pointed that its operations had seen a surge in in mobile activity, with Q2 revenues from the channel up by 387%, a channel that will be key to the operator future performance

Having taken over from Sven Ivo Brink in July, new mybet CEO Zeno Ossko issued his first performance statement.

“Due to comparatively higher payouts of winnings and a correspondingly slightly lower hold margin of 18.9%  (previous year: 19.9%), the very good development in betting stakes was not yet fully reflected in revenue and earnings. “

Profitability expressed as earnings before interest and taxes (EBIT) came under pressure from a variety of factors in the first half of 2015. A structural shift in the composition of revenue towards sales channels that are less advantageous for the company brought an increase in expenditure for commissions of €1.0 million

The focus for 2015 is squarely on our guiding principle of “Product and Customer First”. In specific, that means a clear brand promise, a perfect product and excellent customer service.

mybet SE H1 2015 Performance Overview

mybet

 

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