Mybet accepts losses ahead of Amelco deal

Mybet accepts losses ahead of Amelco deal

Wednesday, May 13, 2015 Totally Gaming
Mybet reported good horse racing figures in Q1

European-facing online gaming operator Mybet is hoping to "make up ground" on its competitors after agreeing the terms of a deal with software developer Amelco.

Mybet has been aware of the need to improve its product for some time, and the deal with Amelco, which lists William Hill among its clients, would "comprehensively overhaul" its sports betting product range and realise "further improvements" in system stability.

However, the cost of the deal - which is likely to be signed in June - means that, at best, mybet  which has a licence in Germany and was known as Jaxx until 2012,  expects a loss of €500,000 ($565,000) in terms of EBIT in 2015.

"We are delighted to have found a strong and experienced partner with which to realise our goals in Amelco," said Sven Ivo Brinck, Mybet chief executive.

"The product solution to be developed in partnership with Amelco is based on the successful services already provided by Amelco and encompasses sports betting, risk management and bonus administration. We are developing a multifunctional product range that will revolutionise our sports betting range across all our sales channels, online and offline.

"Together, we will be able to speed up realising the innovations and transformation processes that we have embarked upon under the auspices of the change project."

Mybet has also today (Wednesday) announced its Q1 results, which saw an overall revenue increase of 2.3 per cent to €18.3m compared to the first quarter of 2014.

However, while horse betting was up 40 per cent year-on-year to €2m, and casino and poker operations rose 3.2 per cent to €5.7m, sports betting generated a total of €10.4m, down 2.1 per cent compared to what was posted a year ago.

Mybet chief financial officer Markus Peuler said: "We are facing an exciting and challenging project, the precise scope of which we will define hand in hand with Amelco over the coming weeks.

"Although the project investment needed will be a burden on the 2015 result, we believe it will start to have a positive impact on revenue before the end of 2015 and then produce overproportional earnings growth in the coming financial year fo 2016. This is a big opportunity for Mybet."

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