bet-at-home records 3x EBITDA downturn as a result of German regime change 

bet-at-home AG has cited that tougher anticipated adjustments to German gambling’s new federal regime have resulted in the company recording a 9% decline in group revenues to €56.8 million (H1 2020: €62.3m). 

Updating investors on its H1 2021 interim results (period ending 30 June), bet-at-home stated that its commercial performance had slowed against previous forecasts due to implementing numerous ‘core requirements for its platforms to accept German customers’.

Having previously operated as a Hesse state licensed sportsbook operator, bet-at-home was amongst 20 businesses granted a ‘transitional licence’ last November. The concession would allow bet-at-home to modify its online services to the new regulatory requirements of the Fourth Interstate Treaty (GlüNeuRStv) regime that formally launched on 1 July 2021.

“Legal requirements such as an elaborate registration process and a limited betting offer had a negative impact on customer activity in the first half of 2021, with the result that the European Football Championship, in particular, fell short of expectations.” bet-at-home disclosed on its H1 trading statement.

As a result of regulatory limitations imposed on its product verticals, bet-at-home’s first-half EBITDA shrank to €5.4 million, approximately 3x down on H1 2020 EBITDA outcome of €15.8 million.

Though GlüNeuRStv adjustments were outlined as the main contributing factor to the group’s performance decline. bet-at-home registered further period headwinds related to €3.2 million legal costs in relation to Austrian player lawsuits, higher Euro 2020 marketing costs and the discontinuation of its Polish business unit as of 1 June 2021.

Having navigated multiple H1 headwinds, bet-at-home reduced its operating cash flow to €41.8 million (H1 2020: €57m).

Evaluating bet-at-home’s interim performance against factors influencing the firm’s revenue and earnings capacity, the company’s board has reduced the firm’s 2021 full-year guidance to be in the range of €100-to-110 million in revenues and €8-to-10 EBITDA.