Player activity decline sees mybet revenues & earnings tumble in Q3 2015

Having issued a 2015 profit warning in September, Frankfurt Xetra listed mybet Holdings recorded a 7% decline in group net revenues to €16.5 million for Q3 2015 (period ending 30 September).

The European operator recorded revenue declines in all key verticals (apart from horse racing), as it posted net losses of -4.2 million for the period (Q3 2015 -€440,000).

The operator’s decline had been driven by a 21% downturn in player activity to 44000 (Q3 2015 – 56000). The downturn would result in online wagering decline of -11 to €19.7 million (Q3 2015 – €22.2 million).

Responding to its declining performance, mybet governance outlined that the operator is continuing its change process aimed at optimising operational performance.

The changes are part of mybet’s “product and customer first strategy”, which will see the integration of a new IT platform with an expanded product range.

The operator stated that although it had suffered a tough Q3 2015, its operations had begun to witness improvements under the new strategy

Zeno Ossko commented on company performance;

“With the roll-out of our new IT platform, we have now decided to completely replace the existing systems. As a result, there were one-off writedowns on legacy software of EUR 3.4 million and the remaining useful life of the existing platform was adjusted.”

“This placed a corresponding burden on earnings before interest and taxes (EBIT) for the first nine months. In the reporting period, EBIT amounted to €-4.7 million. Adjusted for these writedowns and the effect of capital controls, EBIT amounts to € -1.3 million (previous year: adjusted € -0.9 million). Adjusted EBIT in the third quarter of € -0.6 million was slightly up on the previous year (adjusted €-0.7 million)”

Mybet Q3 Performance Overview