DGAP-Adhoc: mybet Holding SE publishes Nine-Month Report

mybet Holding SE / Key word(s): Quarter Results 07.11.2013 08:01 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- mybet Holding SE publishes Nine-Month Report - Nine-month revenue up 3.3 percent to EUR 50.9 million - Investment in new products and lower casino business weigh on third-quarter earnings - Revenue and EBIT forecast for 2013 as a whole revised mybet Holding SE (Deutsche Börse, Prime Standard, ISIN DE000A0JRU67) today publishes its report on the first nine months of 2013. The period under review saw revenue increase by 3.3 percent to EUR 50.9 million. Earnings before interest and taxes (EBIT) totalled EUR -4.0 million. EBIT for the prior-year period of EUR 6.8 million was influenced by a non-recurring effect amounting to EUR 7.7 million from the sale of the German-language lottery operations. In the third quarter of 2013 revenue came to EUR 15.6 million (previous year EUR 15.0 million). EBIT was EUR -2.3 million (previous year EUR -1.0 million). Business performance in the third quarter Revenue in the core segment Sports Betting made very positive progress in the third quarter of 2013: there was a 30.6 percent increase in revenue to EUR 8.0 million (previous year EUR 6.1 million). Both betting stakes and the revenue remaining after the payout of winnings rose much more sharply for online operations than in the betting shops. The bookmaker's margin, which represents the ratio between winnings paid out and betting stakes, was slightly below the long-term average of 18.1 percent at 17.4 percent. Increased investment was needed in the Sports Betting segment to accelerate the development of new products that are designed to generate extra revenue in the short term. The mybet betting terminals, the mybet customer loyalty card and new mobile apps, for instance, are nearing market readiness. The increased costs led to a drop in earnings for the segment from EUR -0.5 million in the previous year to EUR -1.5 million. Positive effects from the cost-cutting programme launched in August will become apparent for the first time in the fourth quarter. The group's revenue growth was held back by a decline in business with casino and poker games, which had to be halted in certain markets as a result of regulatory intervention. The segment's revenue fell by 8.6 percent in the third quarter to EUR 5.1 million. EBIT was lower, at EUR 48 thousand (previous year EUR 317 thousand). The Lotteries segment, which now comprises Spanish business following the sale of German-language activities last year, contracted further due to the continuing difficulties of the Spanish economy. Third-quarter revenue fell by 16.7 percent to EUR 845 million (previous year EUR 1,015 thousand). The loss was reduced slightly to EUR -293 thousand (previous year EUR -348 thousand). There was a slight decrease in revenue from horse betting of 7.7 percent to EUR 1.4 million (previous year EUR 1.5 million). However EBIT improved significantly to EUR 206 thousand (previous year EUR 21 thousand). Liquidity Cash and cash and cash equivalents again fell due to the negative result and reached EUR 8.3 million on September 30, 2013 (December 31, 2012: EUR 14.9 million). Of this sum, EUR 2.3 million is attributable to the 63.5 percent interest in pferdewetten.de AG and is therefore not available group-wide. A further EUR 2.0 million is reserved as security for licences. Monika Fiala appointed new CFO Monika Fiala joined the Management Board of mybet Holding SE on November 1. She takes over as CFO from Stefan Hänel, who left the company at the start of October. A native of Austria, 48-year-old Fiala was previously the long-standing Finance Director of the listed company update Sofware AG. Outlook Based on experience and recurring seasonal patterns, the fourth quarter is the highest-revenue period of the year. European football leagues and tournaments such as the Champions League and Europa League are in full swing. The products of the mybet Group already brought in record-breaking betting stakes of nearly EUR 20 million in October. However the bookmaker's margin was a below-average 15 percent due to a string of wins by favourites in virtually all European leagues and competitions. In the course of the fourth quarter mybet plans to complete various important projects that will unlock additional sources of revenue in the short term. For example betting terminals and the personalised loyalty card to boost customer loyalty in the shops will be launched shortly. The fourth quarter will also see the initial effects of the cost-cutting programme. The volatility of the mybet Group's business, mainly due to fluctuations in the bookmaker's 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. Due to the weak margins in October, as a precaution the Management Board is revising its forecast for operating EBIT for the whole of 2013 to EUR -3.0 to -1.0 million. Revenue expectations are being scaled back from EUR 75 to 80 million to a lower EUR 70 to 75 million. In light of the economic situation in Spain, it will moreover be necessary to examine the soundness of various current and non-current assets. Depending on the findings this could place an additional burden on earnings, though there would be no impact on liquidity. Key figures for 9 months / 3rd quarter: <pre> 9M 2013 9M 2012 +/- Q3 2013 Q3 2012 +/- EUR '000 EUR '000 % EUR '000 EUR '000 % Gross revenue 179,965 176,873 +1.8 57,873 52,362 +10.5 Revenue 50,881 49,264 +3.3 15,610 14,966 +4.3 Sports Betting 26,013 23,223 +12.0 7,967 6,101 +30.6 Casino & Poker 17,453 15,449 +13.0 5,055 5,532 -8.6 Lotteries 2,683 5,006 -46.4 845 1,015 -16.7 Horse Betting 3,796 4,463 -14.9 1,416 1,534 -7.7 Net gaming revenue (NGR) 50,247 48,567 +3.5 15,392 14,634 +5.2 Other operating income* 1,225 8,772 -86.0 303 276 +9.8 EBITDA, adjusted** -1,451 1,958 n/a -1,398 -300 -366.0 EBIT, adjusted** -3,980 -971 -309.5 -2,347 -975 -140.7 EBITDA -1,451 9,696 n/a -1,398 -300 -366.0 EBIT -3,980 6,766 n/a -2,347 -975 -140.7 Consolidated earnings -2,672 5,227 n/a -1,896 -1,303 -45.5 Earnings per share (EUR) -0.12 0.22 -0.08 -0.06 30/09/13 31/12/12 Cash holdings 8,343 14,884 Shareholders' equity 25,892 28,520 Equity ratio 61.9 % 64.9% </pre> * 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 Nine-Month Report will be made available for downloading in the course of today on the websites www.deutsche-boerse.com and www.mybet-se.com. 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 07.11.2013 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- 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 ---------------------------------------------------------------------------