Mybet expects profit swing after cash settlement
Frankfurt-listed firm updates 2017 guidance after resolution of 10-year legal battle with Westlotto
Mybet has upgraded its 2017 EBIT projection to €4.5m-€5.5m after reaching an out-of-court settlement on its long-running legal proceedings against lottery firm Westlotto.
The new target represents an approximate €7.7m increase from mybet’s previous 2017 EBIT projection of between €-3.2m and €-2.7m.
Revenue projections were unchanged at €44.5m to €47m.
The improved target comes after mybet received an €11.8m payment from rival operator Westlotto in relation to an alleged breach of competition laws.
In 2007, Westlotto filed an injunction against Mybet for selling “over-the-counter” lottery products in Germany.
Mybet appealed the injunction and the High Court of Dusseldorf ruled in 2014 it was a breach of the the country’s free market and competition laws.
Following a series of appeals, Westlotto agreed to settle out of court earlier in May.
Mybet said the payment would also enable it to revise its operational plans for 2017, although did not specify how the cash would be spent.
Back in March, the Germany-facing firm rolled out a new platform and site, powered by Amelco.