Bet-at-home grows despite tax hike

Bet-at-home grows despite tax hike

Tuesday, May 5, 2015 Totally Gaming
Bet-at-home has recorded strong Q1 figures

Online gaming and sports betting operator bet-at-home has revealed that despite having been faced with new tax burdens in the three months through to March 31, it was able to achieve year-on-year growth across its key financials.

The operator posted gross betting and gaming revenue of €28.4m ($31.5m) in the first quarter, which represents an increase of 13.1 per cent on the €25.2m recorded in the corresponding period last year.

Earnings before taxes jumped 19.1 per cent to €9.8m in Q1 while the Germany-based operator was also able to increase its workforce by eight per cent to 269 employees.

Bet-at-home also noted that a 15 per cent drop in marketing expense to €6.5m was expected due to “sustained increases in efficiency” in the opening period of the year.

Speaking to TotallyGaming.com about the quarterly performance, investor relations manager Klaus Fahrnberger said the operator is now on track to reach or possibly beat its earnings before interest, tax, depreciation and amortisation (EBITDA) of €20m.

“The new VAT taxation, which has been valid since January 2015, had an impact of €1.6m in Q1 2015 and therefore strained our operational development,” Fahrnberger said.

“Nevertheless, we’ve been able to compensate this new burden through the exceeding development of the bet-at-home.com group and we are confident to reach or even beat our EBITDA guidance of more than €20m for 2015.”

Having achieved year-on-year growth in the first quarter, Fahrnberger said that the focus is now on maintaining this level of success throughout the remainder of 2015. He highlighted a continued focus on efficient marketing expenditure as a key strategy moving forward.

“During the last year, we earned lots of experiences in our markets and our customer base, which leads to a special knowledge in the efficiency of marketing expenses,” Fahrnberger said.

“We will therefore continue to optimise our marketing expenses to increase further customer retention on the one hand, and will also show further efforts in improving our products, as well as the usability of our mobile platform.”

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