Internet betting firm MyBet has released its full year 2013 financial results, noting a net loss of €5.4 million and negative EBIT of €10.2 million.
The results are a disappointment for the German company, which blamed the poor results on write-downs and other affects.
Key financial indicators for the year were:
Consolidated revenue down 2.5 percent to Euro 67 million;
Sports betting slightly up at Euro 33.3 million;
Casino and poker up 8.1 percent at Euro 23.4 million;
Lotteries down 49 percent to Euro 3.1 million following the sale of JAXX and poor performance in Spain, where the company plans to sell off its interests
Horseracing down 11 percent to Euro 5.6 million;
The Italian sports betting market was disappointing, adding a loss to the overall numbers;
MyBet left the French market due to "regulatory aspects";
Provisions and non-recurring effects of Euro 7.3 million weighed on the result, as did restructuring expenditure of Euro 0.9 million;
Provisions of Euro 3.5 million were made as a precaution for litigation costs and possible additional claims for gaming levies. This includes provisions "in the low six-digit range" for the lawsuit by Management Board member and former CFO Stefan Hänel, who was dismissed in October 2013.
Loans, goodwill and participating interests totaling Euro 2.4 million were written down along with the de-consolidation and reassessment of the business potential of the Spanish companies, and a de-consolidation expense of Euro 0.5 million was booked.
There was a 21 percent year-on-year rise in online sports betting hold (betting stakes less betting winnings) to Euro 14 million (previous year Euro 11.6 million).
Retail shop business fell by 13 percent to Euro 17.8 million (previous year Euro 20.5 million) due to system instability issues at the start of 2013 and the quality-led consolidation of the franchise structure.
MyBet's interest in pferdewetten.de AG was reduced to 52.2 percent at the end of 2013 through the sale of shares. The strategic relevance and role of the participating interest within MyBet is currently being assessed.
With an equity ratio of 49 percent (previous year 65 percent) and financial resources totaling Euro 9.7 million (previous year Euro 14.9 million), of which Euro 5 million is not freely available, the leeway of the MyBet group is currently limited.