Date: 08.11.2023

by Mateusz Mazur

Last update: 25.11.2023 10:42

bet-at-home AG Group’s Strategic Outsourcing and 2023 Financial Performance AG Group is steering towards a strategic shift by the end of the 2023 fiscal year, with the goal of outsourcing key corporate functions.

bet-at-home AG Group's Strategic Outsourcing and 2023 Financial Performance

This transition is exemplified by the February 2023 outsourcing of its Malta-licensed domain to EveryMatrix and the successful outsourcing of its German-licensed offering. This move enables the Group to focus on in-house development and operations that are crucial for customer engagement and revenue generation, which cannot be effectively outsourced.

Financial Trajectory in 2023’s First Three Quarters

The Group’s revenue development during the first three quarters of 2023 saw a downturn, with gross betting and gaming revenue dipping to EUR 34.5 million, an 11.6% decrease from the previous year.

This contraction is attributed to Germany’s regulatory changes and an atypical sports betting margin impacted by a spate of favorite wins in football. The online gaming segment also faced challenges, suffering from tighter restrictions on licensed offerings.

Cost Management and Marketing Strategies

A significant reduction in personnel expenses was achieved following restructuring efforts, falling by 38.8% to EUR 6.6 million. Meanwhile, the Group intensified its brand presence, particularly around the 2023/2024 football season, resulting in a 33.8% increase in marketing expenditures to EUR 11.7 million.

These efforts are part of a broader ambition to fortify market positions in core markets like Germany and Austria through targeted marketing initiatives.

Earnings and Operational Expenses

Operational expenses experienced a 15.9% year-on-year decrease, while EBITDA for the same period fell by 24.4% to EUR 1.7 million.

Despite the challenging environment, the Group’s asset and capital structure remained stable, with solid equity and an increase in cash and cash equivalents.

Forward-Looking Statements

Looking ahead, the Management Board projects gross betting and gaming revenue for 2023 to range between EUR 44 – 48 million, with EBITDA expected to hit the upper range of the forecasted EUR -3 million to EUR 1 million.

This outlook is cautiously optimistic, considering potential one-off effects from the dissolution of Entertainment Ltd.

Our Comment on the Article AG Group’s pivot towards outsourcing marks a strategic adaptation to the evolving iGaming landscape, focusing on core competencies to drive customer and revenue growth.

While facing revenue challenges due to regulatory headwinds and market fluctuations, the Group’s cost-saving measures and robust marketing campaigns demonstrate a proactive stance to maintain a competitive edge.

The stability in their financial structure amidst such transitions suggests a resilient business model, poised to navigate the complexities of the market and potentially emerge stronger in the aftermath of its current strategic realignment.


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