Bet-at-Home Earnings Plunge 50% in Q1

The gaming enterprise, Bet-at-Home, experienced a 50% reduction in its earnings during the initial three months of 2022. This decline was attributed to regulatory hurdles encountered in Germany, Austria, and the Netherlands.

The company’s income amounted to €14 million ($15 million), which they declared was in accordance with their projections for the period. Nevertheless, this represented a 54.1% drop compared to the first quarter of 2021, primarily due to numerous regulatory obstacles in Bet-at-Home’s key markets.

Bet-at-Home ceased operations in Austria last year, leading to the elimination of 65 positions. The company asserted that continuing operations in Austria would entail escalating risks and was ultimately not defensible. This decision followed a legal dispute in Austria where players sought reimbursement for losses incurred with unauthorized operators. The sole licensed operator in the nation is the Austrian Casino.

Concurrently, in the Netherlands, Bet-at-Home was among several operators that discontinued accepting Dutch players prior to the market’s opening on October 1st of last year. This was prompted by a modification in enforcement policies within the country. Bet-at-Home declared that they submitted a license application at the conclusion of the first quarter, paving the path for a return to the market.

In the meantime, the German company’s operations were affected by temporary rules requiring operators to follow the nation’s Fourth State Gambling Act, including a €1 slot machine wagering limit. The company stated that the effect was intensified by the fact that unlicensed operators had not yet been subject to regulatory action, but it anticipated this to change shortly.

“We anticipate the relevant authorities to take decisive action against unauthorized providers in the near future,” the Bet-at-Home board stated.

Personnel costs for the company were €4.4 million, down from €5 million in the previous year, due to staff reductions announced last year. Marketing expenses also decreased to €3.5 million as the company planned to concentrate marketing spending more heavily at the end of the year, during the FIFA World Cup in December 2022.

Other operating expenses were €5.1 million.

The company reported an EBIT loss of €1.4 million, compared to an EBIT profit of €690,000 in the previous year.

The company reaffirmed its full-year revenue forecast of €50 million to €60 million, and its EBIT forecast of a loss of €2 million to a profit of €2 million.

Betclic Everest, a subsidiary of Bet-at-Home, declared earlier this month that they will be listed on the Euronext Amsterdam stock market. They will achieve this by combining with a special purpose acquisition company (SPAC) in a transaction that will encompass all of Europe.

The agreement will involve Betclic Everest first merging with Banijay, resulting in the formation of a company called FL Entertainment. This newly formed entity will be valued at €7.2 billion, with the majority of the worth stemming from Banijay. Subsequently, FL Entertainment will merge with Pegasus Entrepreneurial Acquisition Company Europe, which is already listed on Euronext Amsterdam.

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