Bet-at-home Reports Q1 Earnings Growth on Reduced Spending
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Bet-at-home, an online gambling operator, has announced positive earnings before interest, tax, depreciation, and amortization (EBITDA) for the first quarter, thanks to a reduction in costs.
The company implemented various cost-saving measures, including restructuring programs in 2022, which led to a decrease in staff headcount and personnel costs. Marketing spending was also lowered, along with other operating costs, resulting in a shift from an EBITDA loss in Q1 2022 to a positive figure.
Despite a 5.0% year-on-year decline in Q1 revenue to €13.3 million (£11.5 million/$14.3 million), Bet-at-home's CEO, Marco Falchetto, remains optimistic about meeting full-year targets, including revenue forecasts.
Falchetto stated that the focus for revenue in the 2023 financial year would be on expanding in the core markets of Germany and Austria, leveraging the high brand awareness in German-speaking countries. The group plans to offer all its products in Germany based on national licenses.
Breaking down the Q1 revenue performance, net online sports betting revenue slightly increased to €9.7 million, while revenue from online gaming declined by 36.1% to €500,000. Bet-at-home's operations were impacted by its decision to exit the British market following the suspension of its license. The operator also phased out its online casino activities in Austria.
During the quarter, Bet-at-home launched its Malta-licensed offering with the EveryMatrix platform. The outsourcing of its German-licensed platform to Bet-at-home.de is near completion.
To achieve further cost savings, the company plans to outsource key corporate functions, focusing on customer-relevant components that cannot be sourced or operated externally.
In terms of spending, personnel costs were reduced by 43.3% to €2.5 million, marketing expenses fell by 22.9% to €2.7 million, and other operating expenses decreased by 31.4% to €3.5 million.
The operator reported a pre-tax profit of €1.3 million, compared to a €2.0 million loss in the previous year. After income tax of €539,000, the net profit for the quarter amounted to €775,000, marking a significant improvement from the €2.7 million loss in Q1 2022. The EBITDA turned from a loss of €1.4 million to a positive figure of €1.8 million.