DGAP-Adhoc: mybet Holding SE publishes 2013 First-Half Report

mybet Holding SE / Key word(s): Half Year Results

15.08.2013 08:04

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mybet Holding SE publishes 2013 First-Half Report

- Slight rise of three percent in first-half revenue
- Q2 EBIT just up on adjusted prior-year level
- Betting tax and regulatory matters hold back progress
- Management Board resolves comprehensive cost-cutting programme and
revises forecast

Kiel, August 15, 2013 - mybet Holding SE (Deutsche Börse, Prime Standard,
ISIN DE000A0JRU67) succeeded in increasing its revenue by around three
percent to EUR 34.9 million in the first half of the 2013 financial year.
Growth in the core segments Sports Betting and Casino & Poker actually
reached 13 percent. Last year mybet had sold its lottery operations in
German-speaking countries for EUR 12.5 million in a move designed to allow
it to concentrate on its core skill in the sports betting.

In the second quarter of 2013, revenue was slightly down on the prior-year
quarter at EUR 15.3 million (EUR 15.9 million). However revenue in the core
segments Sports Betting and Casino & Poker actually edged up by two
percent.

Thanks to its clearer focus, mybet is performing better than the industry
average, which features falling revenue as a result of continuing
difficulties with the regulatory situation in Germany and a strong
prior-year quarter which included football's European Championship. A
number of mybet's competitors suffered substantial falls in revenue for the
second quarter.

The sports betting stakes placed on the Internet platforms of the mybet
Group climbed 17 percent in the first half to EUR 51.6 million (previous
year EUR 44.1 million), and 8 percent in the second quarter to EUR 25.3
million (previous year EUR 23.5 million). The revenue (hold) climbed 33
percent to EUR 7.0 million in the first half of the year (previous year EUR
5.2 million), and 17 percent in the second quarter to EUR 2.6 million
(previous year EUR 2.2 million).

In the second quarter of 2013 36,000 new customers registered to use mybet
products. The average of 51,000 active online customers in the period was
some 9 percent up on the prior-year quarter, when around 46,600 customers
were active on at least one occasion in a period that included the UEFA
European Championship.

Growth in the Sports Betting segment was hampered by weaker business at the
betting shops, which suffered from the betting tax and delays in the
licensing process in the second quarter. The betting stakes placed in the
shops fell by 21 percent in the first half to EUR 42.3 million (previous
year EUR 53.5 million), and by 27 percent in the second quarter to EUR 20.6
million (previous year EUR 28.2 million). The hold for the shops was down 9
percent in the first half at EUR 10.3 million (previous year EUR 11.3
million), and fell by 21 percent in the second quarter to EUR 4.0 million
(previous year EUR 5.0 million).

Revenue from casino and poker games was increased by 25 percent in the
first half to EUR 12.4 million (previous year EUR 9.9 million), and by 12
percent in the second quarter to EUR 5.8 million (previous year EUR 5.2
million). The now-sold lottery operations in German-speaking countries
meant revenue in the Lotteries segment dropped by 54 percent in the first
half, and by 32 percent in the second quarter. For the same reason revenue
from horse betting declined by 19 percent in the first half, and by 19
percent in the second quarter.

Earnings before interest and taxes (EBIT) for the first quarter of EUR -1.7
million were a slight improvement on the previous year (EUR -1.8 million).
In light of additional burdens in the second quarter from the absence of
earnings from JAXX business and the erosion of revenue due to regulatory
intervention, this slight improvement can be viewed as especially positive.
Despite being convinced of the lawfulness of its position, mybet felt
obliged to exclude customers from its offerings in a number of countries
due to this intervention, resulting in a substantial loss of revenue and
earnings.

EBIT for the first half amounted to EUR -1.6 million (previous year EUR 3
thousand). The non-recurring effect of EUR 7.7 million from the sale of
lottery operations is eliminated from the prior-year figures. Investment in
the second quarter went primarily on the development of new products such
as mobile apps and betting terminals.

Cash and cash equivalents totalled EUR 10.1 million at June 30, 2013
(December 31, 2012: EUR 14.9 million). The equity ratio of 65.8 percent was
slightly up on the year-end level at December 31, 2012 (64.9 percent).

Outlook

In football, the new Bundesliga season begins in August and will prompt a
clear revival in betting business. This will coincide with the market
launch of the new mybet mobile website as a web app for iOS and android.
Following a test phase, the mobile application will then also become
available in the corresponding app stores.

The Germany-wide licensing process in line with the State Treaty on gaming
is unlikely to be completed in the second half of 2013. The Hesse Ministry
of the Interior, which is leading the process, has issued the first few
permits but these are unlikely to go unchallenged because the entire
process is on a legally shaky basis and has already led to various judicial
review proceedings. This gives the permits awarded under Schleswig-Holstein
gaming legislation, which mybet has held since last year, all the more
significance. In the light of continuing difficulties with the regulatory
conditions in Germany, mybet is currently investigating additional options
for international growth.

Although the revenue performance of the mybet Group remains positive
compared with the industry, the Management Board has launched a
cost-cutting programme to counter the negative impact of the betting tax
and the loss of French activities. For example marketing costs are to be
drastically reduced in the second half and all commission agreements with
partners reappraised. In the personnel area, a saving of EUR 1.5 million
per year is being targeted. The Management Board and management employees
of mybet's operating company, too, are waiving 20 percent of their
remuneration until the end of the year. In addition, mybet is increasingly
investing in the development of new products and in business expansion into
new markets in order to generate additional revenue sources.

The volatility of the mybet Group's business, mainly due to fluctuations in
the bookmaking margin, renders it difficult to make a narrowly defined
economic forecast. Normally the fourth quarter, with its high levels of
betting stakes, determines whether the targets for the year will be met.

A clearly positive result is consequently expected for the second half of
the year. Nevertheless the Management Board is downgrading its EBIT
forecast for the 2013 financial year from at least EUR 2.5 million to the
range of minus EUR 1.0 million to EUR 0.0 million, with consolidated
revenue of EUR 75.0 to 80.0 million (previously EUR 80.0 to 87.0 million).

Key figures for 1st half / 2nd quarter

6M 2013 6M 2012 +/- Q2 2013 Q2 2012 +/-
EUR '000 EUR '000 % EUR '000 EUR '000 %
Gross revenue 122,092 124,511 -1.9 59,931 64,326 -6.8
Revenue 35,271 34,298 +2.8 15,303 15,807 -3.2
Sports Betting 18,046 17,122 +5.4 7,015 7,426 -5.5
Casino & Poker 12,398 9,917 +25.0 5,787 5,171
+11.9
Lotteries 1,838 3,991 -53.9 940 1,374
-31.6
Horse Betting 2,380 2,929 -18.7 1,315 1,547
-15.0
Net gaming revenue (NGR) 34,855 33,933 +2.7 15,086 15,625 -3.5
Other operating income* 923 8,496 -89.1 456 8,134
-94.4
EBITDA, adjusted** -50 2,257 n/a -856 -782 -9.5
EBIT, adjusted** -1,633 3 n/a -1,745 -1,785 +2.2
EBITDA -50 9,995 n/a -926 6,956 n/a
EBIT -1,633 7,741 n/a -1,815 5,953 n/a
Consolidated earnings -776 6,530 n/a -1,165 5,473 n/a
Earnings per share (EUR) -0.04 0.28 n/a -0.05 0.23 n/a

30/06/2013 31/12/2012
Cash holdings 10,096 14,884
Shareholders' equity 27,774 28,520
Equity ratio 65.8% 64.9%

*The other operating income includes the divestment proceeds of EUR 7,738
million from the disposal of lottery operations in German-speaking
countries in the second quarter of 2012.
** EBITDA/EBIT adjusted to exclude divestment proceeds

The First-Half Report will be made available for downloading in the course
of today on the websites www.deutsche-boerse.com and www.mybet-se.com.

About mybet:

mybet Holding SE (formerly JAXX SE), established in 1998, is a financial
holding company with holdings in companies in the European gaming industry.
mybet Holding SE currently holds interests in companies in Germany,
Austria, Spain, Italy, Belgium, Gibraltar and Malta. mybet Holding SE has
its headquarters in Kiel. The group's focus is on the products sports
betting, casino and poker, which are offered on the Internet at
www.mybet.com and www.mybet.de as well as in betting shops. The shares of
mybet Holding SE have been listed on Deutsche Börse since 1999 under ISIN
DE000A0JRU67.

Contact:
mybet Holding SE
Investor Relations & Corporate Communications
Stefan Zenker
Tel. +49 (40) 85 37 88 47
Fax +49 (40) 85 37 88 30
Mail stefan.zenker@mybet.com

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Language: English
Company: mybet Holding SE
Jägersberg 23
24103 Kiel
Germany
Phone: +49 40 85 37 88-0
Fax: +49 40 85 37 88-30
E-mail: ir@mybet.com
Internet: www.mybet-se.com
ISIN: DE000A0JRU67
WKN: A0JRU6
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart

End of Announcement DGAP News-Service

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