Online gaming and betting provider mybet Holdings said that despite having suffered year-on-year drop in revenue during the first quarter of 2014, it still expects to achieve forecasted earnings before interest and tax and revenue for the full-year.The company reported consolidated revenue of €17.9 million ($24.5 million) in the period, which is down 8% on the €19.5 million achieved in the corresponding quarter last year.
Despite revenue derived from sports betting having increased 1.2% to €10.7 million in the quarter, mybet was hit particularly hard by the performance of its casino and poker business, which suffered a 16.5% drop in revenue to €5.5 million.
The company’s horseracing betting business also enjoyed a healthy quarter, with revenue up by 35.8% to €1.4 million in the first quarter.
Despite the overall revenue drop, mybet was able to post an increase in earnings before interest, tax, depreciation and amortisation, which grew by 9.9% from €805,000 in Q1 of 2013 to €885,000 this year.
Elsewhere, earnings before interest and tax experienced a significant jump of 192% from €112,000 last year to €327,000 in the most recent quarter.
Looking ahead to the rest of 2014, mybet recognises the second quarter as a traditionally weak period for sports betting with both stakes and margins reducing in the sector as the main football season finishes, and therefore expects a negative result in the second quarter.
However, mybet does still expect to achieve the forecasts it set in its 2013 annual report, envisaging an EBIT at break-even and slightly higher revenue of between €70-75 million.
source : www.igamingbusiness.com
