DGAP-News: mybet Holding SE

mybet Holding SE: Negative revenue trend not yet halted in the third quarter. Nevertheless customer values improved. Saving measures strengthened by job cuts.

Berlin, 23 November 2017. In the first nine months of the 2017 financial year, the mybet Group generated consolidated revenue of EUR 24.9 million. This equates to a decline of 28.2 percent compared to the previous year's figure (EUR 34.7 million), which was supported by the 2016 European Championship. The Group's Sports Betting segment contributed EUR 17.8 million to consolidated revenue (previous year: EUR 21.4 million), the Casino segment EUR 5.4 million (previous year: EUR 11.7 million) and the B2B segment EUR 1.7 million (previous year: EUR 1.6 million).
mybet again achieved some operating success in the third quarter: the product range was augmented by the attractive casino games from the leading games provider Microgaming, the B2B business was expanded through new partnerships in Austria, a promising marketing partnership was agreed with the German Bundesliga club Borussia Mönchengladbach and there were also positive signals from customer values.
However, this was opposed by the casino offering in Greece, which was blocked throughout the third quarter and which the mybet Group was only permitted to reactivate in November. There was also the "football-free period" that prevailed in July and into August due to the season. Last but not least, the limited financial resources severely restricted the possibility of new marketing investments apart from the cooperation with Borussia Mönchengladbach.

Customer activity and revenue improved, but total number of active customers still insufficient
The analysis of meaningful customer values currently available shows that the number of customers still playing casino games or betting on sporting results at mybet one month after their first activity has improved. Both in September and in October, the figures met our expectations with regard to sports betting and even surpassed them in casino. Also a palpable improvement compared to the figures from April 2017, for example, or from an earlier comparable period when the online business was still conducted entirely via the old IT platform was observed. In addition, revenue per user has recently risen slightly above internal expectations. Therefore, the slightly positive trend in customer data already ascertained for the mybet Group's half-year reporting seems to be establishing itself.

"We wanted to see a positive development in the customer values from the beginning of the football season. We have achieved this, and this gives us confidence in the potential of our new product range. However, we have not yet achieved a clear increase in the total number of customers, so that improved customer behaviour would be reflected in our financial indicators. The limited marketing resources that we can deploy are the primary factor slowing down the build-up of the customer base here," explains Markus Peuler, CEO of mybet Holding SE.

EBIT still clearly positive, liquidity situation necessitates financing measures
The mybet Group's earnings before interest and taxes (EBIT) amounted to EUR 4.4 million in the first nine months of this financial year. EBIT therefore improved significantly compared to the previous year's figure (previous year: EUR -2.4 million). The main reason for this was again the settlement payment received to end the Westlotto court case in May 2017.
As of 30 September 2017, group liquidity amounted to around EUR 0.3 million. The Management Board is meeting the mybet Group's additional financing requirement, resulting primarily from the operating performance, with a short-term bridge loan of EUR 0.5 million and the issue of convertible bond with a volume of up to EUR 4.99 million. The announcement of the subscription offer with details on the placement process and risks and the terms and conditions of the bond are expected to be published on 24 November 2017 in the German Federal Gazette and under 'Share price & dates' on mybet Holding SE's website at www.mybet-se.com.

Personnel costs fall by around 20 percent
Due to the economic performance and to adjust the cost structure to the lower business volume, the number of employees of mybet Group is being downsized. With effect from January 2018, the mybet Group will no longer have around 135 employees but only around 100. This will be achieved both by cutting jobs and by not filling vacancies. At the same time, the Management Board is adapting the internal organisational structure in order to adapt processes to the smaller workforce. The expenses necessary for the downsizing of the mybet Group are already included in the new EBIT forecast for 2017. Less the non-recurring expenses, personnel costs will therefore sink by around 20 percent at the beginning of next year.

New 2017 forecast
The lowered forecast for the mybet Group's financial performance indicators in the 2017 financial year, which was published on 10 November 2017, predicts consolidated revenue of between EUR 35.5 million and EUR 37.5 million and EBIT of between EUR 2.5 million and EUR 3.0 million. The level of group liquidity at the end of the year depends directly on the amount of cash and cash equivalents received from the new convertible bond. Therefore, the Management Board cannot publish a new forecast of group liquidity at the end of the year until the final decision on the implementation of the financing measure has been announced.

The full 3rd quarter interim statement of mybet Group is published on the website of mybet Holding SE at www.mybet-se.com > Financial reports.

mybet Holding SE
Die mybet Gruppe ist ein in mehreren europäischen Ländern lizenzierter Anbieter von Sportwetten und Online-Casinospielen mit Sitz in Berlin und Standorten in Köln und in Malta. mybet bietet ihre Wett- und Gaming-Produkte über die Internet-Plattform mybet.com sowie per Franchise-System auch in stationären mybet-Wettshops an. Zudem beliefert die Unternehmensgruppe als B2B-Dienstleister regionale Wettanbieter in Europa und Afrika.
Die mybet Holding SE ist die Muttergesellschaft der mybet Gruppe. Die Aktien der mybet Holding SE (ISIN DE000A0JRU67) sind an der Frankfurter Wertpapierbörse im Prime Standard notiert.
Weitere Informationen unter www.mybet-se.com | www.mybet.com | www.mybet-shop.com

Kontakt
mybet Holding SE
Sebastian Bucher
Investor & Public Relations

tel +49 30 22 90 83-161
fax +49 30 22 90 83-150
e-mail sebastian.bucher@mybet.com