Bet-at-home posts minor revenue rise
Betclic Everest subsidiary's 2011 figures show significant drop in group net income despite slight rise in gross gaming revenue.
Bet-at-home, the German-facing subsidiary of Betclic Everest Group, has seen a 56.1% year-on-year decrease in net income to 4.6m for the year ended 31 December 2011.
The company posted an increase in net gaming revenues of just 0.7% for the year ended 31 December 2011, despite seeing a rise in gross gaming revenue of 6.6m, citing significant increase in advertising expenses, along with its betting and gaming tax application in Austria in January last year. This follows bet-at-home posting losses of 130,000 in Q3.
In a statement bet-at-home said the jump in advertising expenses from 36.66m in the financial year 2010 to 40.81m in the financial year 2011 emphasises a commitment to maintaining its growth strategy. The fourth quarter of 2011 saw advertising expenses amount to 11.96m, an increase of 49.5% or compared to Q4 2010.
“We see large-scale advertising activities as an investment in the future, as means of strengthening the bet-at-home.com brand, particularly with regard to the forthcoming major event in 2012: the European Football Championships in Poland and Ukraine,” it added.