Austrian tax settlement overshadows bet-at-home’s growth momentum

Publishing its Q3 2019 trading update (period ending 30 September) Frankfurt Xetra-listed bookmaker bet-at-home AG reports continued strong commercial momentum, despite the company booking an €11.5 million Austrian tax charge.

Updating investors, bet-at-home reports 2.5% increase year-to-date betting and gaming revenues of €107 million (YTD2018: €104m).

The operator highlights that it has been able to maintain its YTD wagering capacity at the €2.4 billion mark, despite competing against tough 2018 comparatives featuring FIFA Russia 2018 World Cup trading.

bet-at-home details that its improved product portfolio has benefited from an increased player activity supported by heightened ‘core market’ (Germany and Poland) advertising campaigns in the form of TV spots, print and online media as well as sponsorships and extensive bonus promotions.

Despite this heightened advertising activity, bet-at-home was able to maintain year-on-year marketing costs at €29 million, helping increase its customer base to 5.2 million (YTD: 5m).

Positive Q3 trading, in which bet-at-home launched its new advertising campaigns targeting the start of a new European football season, helped the Frankfurt bookmaker post a 13% YTD EBITDA increase to €27 million (YTD2018: €24 million).

Closing Q3 trading, bet-at-home governance declares a YTD EBIT tracking at €25.6 million (YTD2018: €23 million).

Nevertheless, bet-at-home’s strong top-line performance would be undermined by governance settling a €11.5 million ‘Austrian subsidiary’ tax claim – which sees the company attribute  €19.5 million in income taxes,  declaring YTD profits of €5,8 million (YTD2018: €14m).

Concluding its trading update, bet-at-home governance maintains its 2019 guidance generating revenues between €130-143 million, combined with an EBITDA target range of  €29- 33 million.

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