Bet-at-home reports 85% EBITDA drop after turbulent year of trading

A streamlined bet-at-home has provided full-year revenue guidance for 2023 after EBITDA plummeted by 85% last year to €2.1m.

Topline numbers

Gross betting and gaming revenue from continuing operations hit €53.5m, a decrease of 9.8% on last year. The decline was primarily due to exiting the UK market and the implementation of cross-product deposit limits in its domestic market of Germany.

Sports betting revenue came in at €49m, down 13.4% year-on-year, while gaming revenue rose by 60.7% on the prior-corresponding period to €4.5m.

After the reduction of betting taxes and gambling levies, net gaming revenue (NGR) for full financial year 2022 reached €42m, down 11.8% annually.

Full-year EBITDA plummeted by 85% to €2.1m as so-called “other” operating expenses more than doubled to €16.2m.

These expenses included an increase in legal and consulting fees, as well as transaction costs, while other high costs relate to the reconciliation of legal disputes in connection with the bet-at-home.com brand, which is in liquidation.

Advertising expenses increased by 14.3% to €13.6m due to more acquisition and retention offers and a 2022 World Cup marketing campaign.

Personnel expenses decreased, however, by 27.4% to €13.5m due to a restructuring programme, which saw 65 Austria-based staff laid off amid further cut backs.

News nugget

The impact of extreme measures taken throughout 2022 to reorganise and streamline the firm’s operations stood out.

The company changed its historical approach of in-house development to increased outsourcing, with that strategy to be deployed throughout financial year 2023.

In the second half of 2022, operational focus was on the implementation and testing of a new platform, while extensive adaptations to meet German regulatory requirements were also introduced.

These measures, combined with withdrawal from the UK and further preparations for outsourcing, led to a significant reduction in the group’s workforce.

The company did not provide a figure for the number of employees.

Current trading and outlook

Management expects to generate gross betting and gaming revenue of between €50m and €60m for full-year 2023. It has also guided to EBITDA in the range of -€3m to €1m.

The company said Germany and Austria would become areas to target for revenue in 2023 due to the strong awareness in those markets of the bet-at-home brand.

Financial resources, resulting from staff cuts and other fixed cost cutting measures, will be primarily used for customer acquisition and marketing this year, according to management.