Product and regulatory issues hit mybet’s Q1 revenues
Frankfurt-listed operator pledges to bounce back with the help of its new platform as revenues fall 29%
Mybet has reported a 29% dip in Q1 revenues to €8.9m, with the firm blaming its legacy platform and “extraordinary” sporting results for the decline.
Sports betting revenues fell 20% year-on-year to €6.1m, while casino revenues dropped 48% to €2.2m.
The firm said the whole business was affected by its old platform, which was replaced at the end of the quarter, while sports results suffered from customer-friendly results, especially in football.
In addition, the firm’s online casino was out of action in certain regions for much of the quarter due to “complaints raised by the authorities that could not be resolved by now”.
EGR understands the mybet casino is still offline in Greece and the firm is currently in conversation with Greek authorites about the issue.
“In the first quarter the existing trend in the development of the business basically continued since we only put our new platform into operation by the end of the quarter,” said mybet CEO Markus Peuler.
“However the sports results and the high number of winning bets by customers formed an additional burden which we had never experienced in recent years.
“In total the quarter clearly shows why we did not forecast a large growth in revenue for the financial year 2017 despite the new platform. We firstly have to break the downward trend”.
Group EBITDA totalled €-2.2m, down from €-0.8m last year. Despite the tough quarter, mybet still predicted positive FY EBIT of €4.5-5.5m, thanks in part to a recent cash settlement from Westlotto.