Bet at home said that a reduction of costs enabled it to report a positive EBITDA (earnings before interest, taxes, depreciation, and amortization) for the first quarter.
A number of cost-savings measures, including two successive reorganization programs in 2022, led to lower spending. They reduced the number of staff and drove down personnel costs.
Other operating costs also decreased, which allowed Bet-at home to turn an EBITDA deficit in Q1 2022 into a positive.
Marco Falchetto, chief executive of the operator, said that despite some cost increases during the year the operator is still on track to meet certain full-year goals, including revenue projections.
The revenue for Q1 was EUR13.3m ($14.3m) (PS11.5m/$14.3m), a 5.0% decline year-on-year.
Falchetto stated that the gross betting and gaming revenues in the first quarter of 2023 were EUR 13.3m, which is within the expectations for the entire 2023 financial period.
Due to the high awareness of our brand among German-speaking countries in 2023, the strategic focus will be expansion on the core markets in Germany and Austria. The group will be offering all products on a national license basis in Germany during the 2023 financial period.
Q1 Revenue
Net online sports betting revenues for the quarter ended 31 March reached EUR9.7m. This is a marginal increase from EUR9.6m recorded in 2022. Online gaming revenue fell by 36.1%, to EUR500,000.
Bet-at-home has seen its operations suffer year-on-year due to the decision it made last year to leave the British market soon after its license was revoked. Last year, the operator also shut down its online casino operations in Austria.
In Q1, Bet-at home launched its Malta-licensed platform with the EveryMatrix. It is in the final stages of completing the outsourcing of Bet-at-home.de’s German-licensed offering.
Falchetto stated that “Bet-at home intends to outsource key corporate functions by the end of 2023.” The group will then focus on the customer-relevant elements that are not able to be sourced externally or can only be operated in a limited capacity.
The outsourcing order volume is based on net gaming revenues generated by online sports betting. It’s expected to be in the low-single-digit million Euro range per year.
Cost Savings
As a result, all expenses and spending were lower. Personnel costs fell by 43.3%, to EUR2.5m. Marketing expenses dropped 22.9%, to EUR2.7m. Other operating expenses decreased 31.4% to EUR3.5m.
Bet-at home also reported EUR29,000. This resulted in a pre-tax gain of EUR1.3m compared to the EUR2.0m loss recorded last year.
The operator paid EUR539,000 as income tax. This left a net profit in the amount of EUR775,000. In 2022, this was a EUR2.7m deficit. EBTIDA also went from a EUR1.4m loss to EUR1.8m.
