DGAP-Adhoc: mybet misses targets for 2013, ends financial

mybet Holding SE / Key word(s): Preliminary Results 28.03.2014 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 misses targets for 2013, ends financial year with a negative EBIT of EUR 10.2 million - Extensive special write-downs weigh on result for 2013 - Provisions and non-recurring effects also have negative effect - Consolidated revenue down 2.5 % - New Management Board and Supervisory Board under new leadership spearheading turnaround Kiel, March 28, 2014 - mybet Holding SE (Deutsche Börse Prime Standard; ISIN DE000A0JRU67) today publishes its provisional, unaudited key figures for the group for the 2013 financial year. These show that the revenue of the mybet Group slipped by 2.5 percent to EUR 67.0 million (previous year EUR 68.8 million). However the Sports Betting and Casino + Poker segments achieved slight growth. Additional write-downs, provisions and other effects mainly of a non-recurring nature produced a negative EBIT of EUR 10.2 million. Adjustment of activities Revenue for lotteries declined by 49 percent to EUR 3.2 million (previous year EUR 6.2 million) following the sale of the JAXX platforms in the previous year and the continuing negative performance of the Spanish subsidiaries. In order to focus on sports betting and casino products, the Spanish lottery business is to be disposed of in the course of 2014. The Spanish companies were already deconsolidated with effect from November 30, 2013. Loss-making sports betting business in Italy also added to the pressure. The company is currently working on a solution. The loss of the French online market due to regulatory aspects additionally weighed on the result. Provisions and non-recurring effects A number of non-recurring effects which added up to EUR 7.3 million weighed on the result for the 2013 financial year. As well as restructuring expenditure of EUR 0.9 million, provisions totalling EUR 3.5 million were created as a precaution for litigation costs and possible additional claims for gaming levies. The expenditure also includes provisions in the low six-digit range for the lawsuit by the Management Board member Stefan Hänel dismissed in October 2013. Loans, goodwill and participating interests totalling EUR 2.4 million were written down along with the deconsolidation and remeasurement of the business potential of the Spanish companies, and a deconsolidation expense of EUR 0.5 million was booked. Declining consolidated revenue Despite the overall downturn in consolidated revenue, there was a stand-out positive performance by online business in the Sports Betting segment at www.mybet.com and www.mybet.de with 21 percent year-on-year growth in the hold (betting stakes less betting winnings) to EUR 14.0 million (previous year EUR 11.6 million). The hold of the shop business fell by 13 percent to EUR 17.8 million (previous year EUR 20.5 million) due to system instability issues at the start of 2013 and the quality-led consolidation of the franchise structure. Total revenue for the segment in the 2013 financial year came to EUR 33.3 million (previous year EUR 33.3 million). Revenue from casino and poker products increased by 8 percent to EUR 23.4 million (previous year EUR 21.7 million) despite the cessation of French activities because of regulatory matters. Revenue for the Horse Betting segment dipped slightly to EUR 5.6 million (previous year EUR 5.7 million) but profitability improved. The interest in pferdewetten.de AG was reduced to 52.2 percent at the end of 2013 through the sale of shares. The strategic relevance and role of the participating interest within mybet is currently being assessed. Liquidity With an equity ratio of 49 percent (previous year 65 percent) and financial resources totalling EUR 9.7 million (previous year EUR 14.9 million), of which the amount of EUR 5.0 million is not freely available, the leeway of the mybet Group is currently limited. The Management Board is considering whether to improve the group's capital base through the placement of a convertible bond, the disposal of operations and participating interests or other financing measures. The aim behind raising extra financial resources is to give the company extra leeway for action, among other reasons against the backdrop of Germany-wide sports betting licences (E 15) being awarded. On the product side, too, the company is planning to invest in the areas of quality and innovation. Furthermore it plans to build up sufficient financial reserves to make the company less susceptible to seasonal fluctuations and non-recurring effects. Outlook After a deeply unsatisfactory 2013 financial year, the mybet Group will now concentrate on the tasks required to set its house in order once again, and also on its operational core skills in the sports betting and casino areas. Alongside cost-cutting programmes and halting the outflow of liquidity for activities that are not achieving the desired results, the new Management Board and the Supervisory Board under new leadership are moreover seeking a sustainable turnaround, to be achieved through focusing on the activities as described above. To accompany this drive, a new calibre of transparency and communication is to be established. The mybet Group is already beginning to reap the first fruits of this new approach in the first quarter of 2014, which got off to a better-than-expected start. So far, the performance in the new year can be described as promising. The new Management Board expects slight revenue growth to between EUR 70 and 75 million for the 2014 financial year. On the earnings side, the target is a balanced EBIT. Key figures for 2013 <pre> 2013 2012 Change EUR '000 EUR '000 % Revenue 67,030 68,751 -2.5 Sports Betting 33,337 33,320 +0.1 Casino + Poker 23,419 21,671 +8.1 Lotteries 3,183 6,236 -49.0 Horse Betting 5,620 5,685 -1.1 Other operating segments 1,247 1,840 -32.2 EBITDA -5,417 10,992 n.a. EBIT -10,210 7,248 n.a. 31/12/2013 31/12/2012 Cash + cash equivalents 9,673 14,884 Shareholders' equity 19,281 28,520 Equity ratio 48.7% 64.9% </pre> The 2013 Annual Report with audited financial statements is expected to be published in mid-April 2014. 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 28.03.2014 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 ---------------------------------------------------------------------------