Bet-at-home Revises Revenue Forecast Due to Unfavourable Sports Results

Bet-at-home's revenue expectations for 2023 have been adjusted, primarily due to a significant number of unfavorable sports results in prominent football leagues during the period from August to October. This has negatively impacted the sports betting margins. Despite these challenges, Bet-at-home still believes it can achieve a positive EBITDA for the year, with its initial estimate ranging from a negative €3.0 million to a positive €1.0 million. The operator also noted potential one-off effects related to the winding-up of Bet-at-home.com Entertainment, currently in liquidation, which have positively impacted the cost and earnings structure.

The revised guidance is a response to a decline in revenue during the first half of the year. Gross gambling revenue in H1 was €24.2 million, a 9.3% decrease from the previous year's €26.7 million. This decline is attributed to regulatory changes in Germany, a major revenue source for Bet-at-home, particularly the implementation of monthly betting limits since July 1, 2022. However, the EBITDA more than tripled during H1, rising from €1.1 million to €3.8 million, thanks to cost-cutting measures across the business.

Bet-at-home has been navigating challenging times, having ceased operations in multiple key markets and exiting the Austrian market due to legal challenges. Additionally, the Maltese business established to target the Austrian market incurred substantial liabilities, and Bet-at-home faced increased liquidity risk. The company also surrendered its GB license following a Gambling Commission investigation into anti-money laundering and social responsibility failings.