Date: 16.05.2024

by Adam Dworak

Last update: 16.05.2024 11:12

Bet-at-Home Faces Regulatory Challenges in Germany

Bet-at-home reported that its Q1 2024 performance was impacted by the introduction of cross-product and cross-provider monthly betting restrictions in Germany.

These regulations, which took effect in 2022, along with the mandated reporting of increased deposit limits in Q2 2023, have posed significant challenges for the company.

Revenue Remains Stable Despite Regulatory Pressure

Despite these hurdles, Bet-at-home’s CEO Falchetto stated that the €11.7 million revenue was stable compared to Q4 2023, aligning with the company’s expectations for 2024. “Gross betting and gaming revenue in the first quarter 2024 amounting to €11.7m was lower than in same period of last year, due to the negative impact of regulatory developments in the core market of Germany, however remained stable compared to the previous quarter and is therefore within the expected range for the year 2024,” said Falchetto.

Marketing Strategy Shifts Focus to Core Markets

Looking ahead to H1 2024, Falchetto mentioned that Bet-at-home would concentrate its marketing efforts on Germany and Austria. This decision is driven by the upcoming European Football Championship, set to commence in mid-June in Germany. Consequently, marketing expenses have risen year-on-year for Q1.

Continued Strategic Transformation

The operator emphasized that its strategic transformation would continue throughout the 2024 financial year. In Q1, technological development was a priority, with a specific focus on launching a customer loyalty program powered by machine learning.

Net Revenue Decline in Q1

Bet-at-home’s online sports betting generated €10.6 million in revenue, a 13.0% year-on-year decrease. Conversely, online gaming revenue increased by 4.0%, reaching €1.0 million. After accounting for €2.5 million in betting fees and gambling levies, and €4,000 in VAT on electronic services, the total net betting and gaming revenue was €9.1 million, marking a 10.7% decline from the previous year.

Operating Expenses and EBITDA

Advertising expenses saw a significant rise during the quarter, increasing by 65.7% to €4.5 million. In contrast, personnel expenses fell by 17.2% to €2.0 million. Other operating expenses totaled €2.5 million, with a slight offset from €792,000.

EBITDA for the quarter stood at €744,000, representing a year-on-year decline of just over €1 million. After accounting for depreciation and amortization of €352,000, EBIT was recorded at €391,000.

Financial Outlook for 2024

Looking forward to the remainder of 2024, Bet-at-home anticipates gross gaming and betting revenue to be between €45 million and €53 million. EBITDA before special items is projected to lie between -€1 million and €2.5 million.

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