Sportsbetting company Betbull Holding SE's results for the quarter ended March 31st 2009 have showed a disappointing decline of 67% of EBITDA, which dipped to €100,000 (Q1,2008: €300,000). Taking the positives from the results, EBITDA excluding the joint venture in Madrid was €500,000 for the quarter.
Financials for the quarter included:
- Betting stakes of €21.1 million for the quarter were down 20% compared to €26.4 million in Q4,2008 and down 5% compared to €22.2 million in QI 2008.
- Net gaming revenue of €4 million for the quarter was down 10% compared to €4.4 million in Q4,2008 and up 5% compared to €3.8 million in QI 2008.
- EBITDA (including the joint venture in Madrid) was €100,000 for the quarter, up €2.8 million compared to a loss of €2.9 million in Q4,2008 and down 67% compared to €300,000 in QI 2008.
- EBITDA (excluding the joint venture in Madrid) was €500,000 for the quarter and cash position as at 31 March 2009 - also excluding the joint venture in Madrid - was €6.9 million.
- Cash position as at 31 March 2009 (including the joint venture in Madrid) was €7.6 million compared to €8.2 million as at 31 December 2008.
In Germany, the business continues to provide consistent and solid results despite the challenging legislative conditions, management reported. While turnover for Q1,2009 was down 5% on the same period last year, NGR was 5% higher at €4 million and in line with forecasts. Management is confident that the long term prospects for retail betting in Germany are good.
In Spain, the development of Betbull Bwin Espana SA has accelerated during the quarter, with the first 3rd party premises opening in February 2009 and one 'own' premises under the brand 'w1nners' added, with two further premises under development.
The group's Internet activities are limited to providing a complimentary product for retail clients. Betting exchange activities have been curtailed and at present there are no plans to increase online product offers.
Simon Bold, a director of Betbull Holding SE, said: "Our energy and funds are very clearly focused in the sector of retail betting in our core market in Germany and the very quickly growing and fully licensed retail market in Madrid. We will compete for licences in other Spanish autonomous communities as and when they become available. Betbull Holding SE is continuing and close to completing the process of relocation from London to Vienna, part of the overall plan to reduce costs and streamline central and operational activities. Second quarter hold margins have been disappointing to date, with football results particularly favouring clients."
Source: InfoPowa News