Mybet Post Poor 2013 Results

German sports betting and igaming operator – Mybet published a €5.4 million (£4.46 million) loss for 2013. A company statement issued by the operator commented described its 2013 performance as a “deeply unsatisfactory “12 months”. The operator saw an earnings fall of 150%, as Mybet incurred losses from several of its divisions.

Revenue declines had been driven by poor performance of key business units and poor market performance in regulated European sports betting and igaming markets.

Mybet’s lottery performance had suffered a 49% slump in revenues to €3.2 million, following the sales of its JAXX platform. Mybet’s Spanish focused lottery and sports betting operations suffered dismal performance, which saw the operator discontinue its Spanish gambling service.

Sports betting proved to be the operators’ profitable vertical, with gross gaming revenue increasing to 21% – €14 million (£11.6 million).

Mybet had also suffered from recurring payments incurred due to corporate restructuring, which saw a handful of the operators senior management team leave. The operator labelled these departures as ‘generational change’ needed for the company to optimise future performance. The performance reports published by the operator reveal that restructuring cost €0.9 million (£0.65 million)

Further bad news for the operator; saw the public announcement that former CFO and board member Stefan Hanel, had begun legal proceedings against his former employer over his dismissal. The operator had reported that it had set aside €3.5 million (£2.89 million)

A company statement read “After a deeply unsatisfactory 2013 financial year, the mybet Group will now concentrate on the tasks required to set its house in order once again,” a company statement said.

“Alongside cost-cutting programmes and halting the outflow of liquidity for activities that are not achieving the desired results, the new management board and the supervisory board… are moreover seeking a sustainable turnaround.”