The German sports betting and online gambling firm, Bet-at-home.com, has declared that their cost-reduction initiatives have amplified their earnings despite a reduction in overall income.
The firm, which is a component of FL Entertainment, reported a total income of €24.2 million for the first six months of 2023. This represents a 9.3% decrease compared to the same period in the previous year, when they generated €26.7 million.
The company attributed this downturn to new regulations in Germany, which is their primary market.
Specifically, Bet-at-home highlighted the influence of monthly wagering restrictions that were implemented in Germany on July 1, 2022.
These constraints, which were part of the country’s revised gambling regulations, encompass a €1 limit per spin on online slots.
The company also stated that the expansion of the online gambling sector has been slower than anticipated. They attributed this to stricter regulations over the past twelve months.
However, their profits more than tripled during the initial six months of the year, climbing from €1.1 million last year to €3.8 million.
Bet-at-home attributed this to their stringent cost-reduction measures.
Their employee expenses decreased by 39%.
The firms income declined by 3% annually to €4.7 million due to two rounds of organizational changes in 2022.
Promotional expenditures also fell by 5.6% to €5.5 million. The business stated that remaining spending will be concentrated on advertising campaigns leading up to the start of the 2023-24 football season.
Other operational expenses decreased by 13.9% annually to €6.2 million, compared to €7.2 million in the first half of 2022.
**Bet-at-home’s Challenges**
Bet-at-home’s cost-reduction efforts come after a difficult period for the company, which is gradually withdrawing from its operations in several key markets.
In October 2021, the company announced it would leave the Austrian market after facing legal challenges to its operations.
In this instance, some players sought reimbursement for losses incurred from betting with the operator on the country’s grey market.
Bet-at-home also decided to close down its Malta-based operations, which were established to target the Austrian market. The company had a debt of €27.4 million, of which €24.1 million was due to player reimbursements.
Following the closure, the operator cautioned of increased liquidity risks and that the company may not be able to fulfill its financial obligations.
The company relinquished its UK license after the Gambling Commission decided to investigate it, finding significant anti-money laundering and social responsibility shortcomings.
**Moving Forward**
Bet-at-home anticipates generating between €50 million and €60 million in total wagering earnings for the remainder of the year. This is attributed to robust online sports betting performance in the latter half of 2023.
The firm maintains its prior full-year EBITDA forecast of -€3 million to €1 million. This is because elevated marketing expenditures in the second half of the year will impact profit margins.
As of June 30, Bet-at-home held €37.8 million in liquid assets, an increase from €35.2 million in the first half of 2022.
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