Bet-at-home accommodates increased taxes

Bet-at-home accommodates increased taxes

Monday, August 10, 2015 Totally Gaming
The company made efficiencies as it dealt with new duties

Bet-at-home has identified efficiencies, marketing cuts and improved performance as the reasons it has been able to absorb the increased tax burden on the online sector in Europe.

The Germany and Austria-facing operator said that the new turnover tax regulations for providers of electronic services within the European Union (EU) resulted in an initial negative effect on earnings in the first half of 2015 in the amount of €3.2m ($3.5m).

However, thanks to a 6.9 per-cent leap in gross betting and gaming revenue and a 38.1 per-cent cut in marketing costs, Bet-at-home said that net gaming revenue is virtually the same as last year at €46.6m, compared to €46.7m in 2014.

“Due to the strength of operating revenue in the first half, the management board has raised its expectations for the 2015 financial year with the result that, from the current perspective, EBITDA in excess of €25m appears realistic if the legal and tax framework remain unchanged,” read a bet-at-home statement.

Gross betting and gaming revenue amounted to €56.7m, despite the Fifa World Cup taking place during the same period in 2014, while earnings before taxes during the first half were also up 78.9 per cent on a year-on-year basis to €16.6m.

The operator was also able to increase its number of employees by 1.9 per cent to 267 while, despite a new three-year deal to become shirt sponsor of German Bundesliga football club Hertha Berlin, marketing expense was cut to €15.2m.

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