The gaming enterprise, Bet-at-Home, experienced a significant decrease in its earnings during the initial quarter of 2022. This downturn was attributed to new regulations implemented in Germany, Austria, and the Netherlands.
The company’s revenue amounted to €14 million (£11.9 million/$15 million), which they indicated was in line with their projections.
However, this represented a substantial decline from the first quarter of 2021, registering a 54.1% drop. This reduction was directly linked to the new regulations imposed in some of their key markets.
In the previous year, Bet-at-Home ceased operations in Austria, resulting in the loss of 65 jobs. The company asserted that continuing operations in Austria would have been excessively risky and not financially viable.
This decision followed a legal dispute in Austria, where certain individuals sought reimbursement for losses incurred through unauthorized gambling platforms. Casinos Austria is the sole entity permitted to operate in Austria.
Concurrently, in the Netherlands, Bet-at-Home was among numerous companies that discontinued accepting customers from the Netherlands prior to the market’s opening on October 1st of the previous year. This action was taken due to modifications in the enforcement of regulations in the Netherlands. The company stated that they submitted a license application at the conclusion of the first quarter, aiming to resume operations in the Dutch market.
In the meantime, German operations are being impacted by interim regulations that necessitate operators to adhere to the stipulations of the nation’s Fourth State Gambling Treaty, which includes a €1 wager restriction for slot machines. The organization indicated that the situation is further complicated by the fact that operators who infringe upon these rules have not yet faced regulatory action, but the organization anticipates this to change shortly.
“We anticipate regulators to adopt a more stringent approach towards unlicensed operators in the near future,” the Bet-at-Home board stated.
The company’s employee expenses amounted to €4.4 million, a decrease from €5 million in the previous year, due to job cuts announced last year. Marketing expenditures also declined to €3.5 million as the company intends to concentrate its 2022 marketing spending more heavily towards the end of the year, during the FIFA World Cup.
Other operational expenses totaled €5.1 million.
The company reported an EBITDA of €1.4 million, compared to €6.9 million in the preceding year.
The company reaffirmed its full-year revenue target of €50 million to €60 million and its EBITDA target of a loss of €2 million to a profit of €2 million.
Betclic Everest, a subsidiary of Bet-at-Home, disclosed earlier this month that they intend to list on the Euronext Amsterdam stock exchange. They will achieve this through a special purpose acquisition company (SPAC) merger with Banijay, a television production firm.
Betclic Everest will initially combine with Banijay to form a new entity named FL Entertainment. This entity will be valued at €7.2 billion, with the majority of the worth stemming from Banijay. Subsequently, FL Entertainment will merge with Pegasus Entrepreneurial Acquisition Company Europe, which is already listed on Euronext Amsterdam.
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