Mybet predicts further losses after poor third quarter
Revised forecast expects losses to now reach 3m with unstable margins and Spanish economy blamed for poor performance
Schleswig-Holstein-based operator Mybet has revised its earnings forecast for the year for the second consecutive quarter after posting Q3 losses of 2.3m.
The firm originally slashed its projections in August when forecasting losses of up to 1m, however it now expects this figure to reach 3m owing to unstable betting margins and the Spanish economy’s impact on lottery revenues.
Total revenues for the period increased 4% year-on-year to 15.6m, however losses increased to 2.3m with casino and poker verticals having performed particularly poorly, with combined EBIT from the two verticals falling 84% year-on-year to just 48,000.
Sportsbetting revenues were up 30.6% year-on-year to 8m, however the operator’s margin remained at 17.4%, lower than the firm’s long-term average of 18.1%.
Mybet blamed on-going economic woes in Spain for a 16.7% fall in lotteries turnover, however the business’s loss was reduced to 293,000.
Despite its performance, Mybet remained optimistic with various projects designed to drive revenue nearing completion. Its mobile app “ which has seen 1.5m of investment “ is said to be nearing launch, while various loyalty schemes are being rolled out to improve customer retention.
Mybet also noted it recorded record-breaking wagering of 20m in October as European football tournaments including the Champions League kicked off, however unfavourable results drove the operator’s margin below 15%.