Bet-at-home earnings up 81% after marketing curb
Operator reports sharp rise in EBITDA as cut in advertising spend more than compensates for increased tax burden
Germany-facing operator bet-at-home this morning reported an 81% year-on-year rise in H1 EBITDA following a substantial reduction in marketing spend.
EBITDA for the first six months of 2015 was 16m (£11.4m), a 7.2m increase on the same period last year which included the majority of the football World Cup.
Gross gaming and betting revenues were up a more modest 6.9% to 56.7m, with EBITDA growth primarily driven by a heavy cutback in marketing spend.
Bet-at-home spent 15.2m on marketing during H1, a 38% year-on-year decline, but despite the reduced spend still managed to add 300,000 registered customers to its 4.1m player base during the period.
A spokesperson for the operator told eGaming Review the decline was also due to there being no major sporting event this summer.
The spokesperson added that the marketing spend for H2 will increase, with 2015’s FY spend expected to top 2014’s 41.1m total.
The firm recently outlined plans to increase marketing spend after becoming the primary sponsor for Bundesliga club Hertha Berlin for the next three seasons.
Meanwhile the firm said the new turnover tax regulations resulted in an initial negative effect on earnings for the period of 3.2m.
Despite the burden, the strong performance has led the management board to raise its FY expectations, describing an EBITDA in excess of 25m as “realistic if the legal and tax framework remain unchanged”.