Bet-at-home revenues rise but loss widens
Advertising expenses up 80% in Q2 due to increased activity around Euro 2012.
A sharp increase in advertising expenses contributed to a net first-half loss for bet-at-home, the Betclic Everest subsidiary announced in its figures for the six months ended 30 June.
However, gross gaming revenue for the half-year rose 19.8% compared to the corresponding period in 2011, coming in at 42.1m, while second-quarter GGR rose 24.5% year-on-year to 21m.
The operator, one of seven to have received a sports betting licence in Schleswig-Holstein, recorded a net H1 loss of 3.3m compared to net income of 2.5m in the first half of 2011. Meanwhile Q2 saw bet-at-home record a net loss of 5.45m before taxes.
Furthermore its Schleswig-Holstein licence is under threat after the jurisdiction announced its intention to abolish its existing egaming legislation in favour of Germany’s controversial state treaty. Last week saw bet-at-home agree a sponsorship deal with SG Flensburg-Handewitt, a handball team based in the region.
Since the end of the second quarter, bet-at-home has been awarded an operating licence in Italy, however parent company Betclic Everest pulled out of Portugal earlier this year, while bet-at-home is among 12 operators which the Danish Gaming Authority has ordered a leading internet service provider to block.
Bet-at-home has also been blacklisted in Belgium, however in July it began legal proceedings against the Belgian government in protest against its blacklisting. It is the second operator to go down this route, following bwin’s unsuccessful case in the previous month.
Last month Betclic Everest completed its buyout of the Everest Gaming brand, securing GigaMedia’s 33.3% stake, in a move which continues CEO Ignacio Martos’ restructuring of the business. In June this year, Martos told eGaming Review that he was paving the way for recovery after a “difficult” 2011.