Bet-at-home AG has retained its strategic guidance for the full year 2020, following significant changes to its business strategy to overcome COVID-19 circumstances and suffer industry headwinds from DACH.
When releasing its interim results for the six months ended 30 June 2020, bet-at-home posted €49.1 million in net betting and gaming revenues, down from €58.7 million in H1 2019, which it said was ‘due to regulatory constraints on individual markets.’
Mirroring industry trends affected by COVID-19 conditions, bet-at-home EBITDA dropped to €15.8 million from €21.3 million in H1 2019. The EBITDA stood at €6.8 million during trading in Q2 2020, down from €8.6 million in Q2 2019.
Bet-at-home reported that from mid-March 2020, when international sporting events were cancelled or postponed, the ‘effects of the pandemic became visible.’ This was offset by a ‘unchanged’ appetite for new betting and niche sports markets, with a variety of consumers moving to betting on esports.
The company declared: “With a step-by-step resumption of playing activities in the national European football leagues in May 2020 and the postponement of important events such as the Champions League and Europa League, the usually low-revenue summer months are positively influenced. In addition, the resumption of international tennis tournaments is to be expected in the second half of 2020.
“The online gaming segment including casino, live casino, virtual sports and poker was not negatively affected by the pandemic.”
The postponement of the European Football Championship, now to be played in 2021, meant that bet-at-home had slashed marketing expenses. The operator announced marketing expenditures for the period reached €13.6 million, down from €16.7 million in H1 2019.
Despite their interim woes, the bet-at-home board maintains that the firm can retain its 2020 guidance, with sales projected to fall by year-end trading between € 120-132 million.
Investor updating, bet-at-home continued to retain its planned 2020 EBITDA guidance range of €23-27 million, while realising possible sales impacts due to regulatory changes in its German home market.
It added: “From the current perspective, the Management Board still expects a gross betting and gaming revenue between EUR 120 million and EUR 132 million in the financial year 2020. The decline in gross betting and gaming revenue compared to the financial year 2019 is attributable to legal restrictions in individual markets. A potential decline in revenues due to regulatory changes in Germany can currently not be estimated and is therefore not considered.
“Furthermore, the Management Board still expects EBITDA to amount between EUR 23 million and EUR 27 million for the financial year 2020.”