The focused Marketing effort in the core European market has brought results for the Bet at Home. The subsidiary of Betclic Everest Group, Bet at Home has posted a year on year increase in terms of revenue and earnings in the first three quarters of 2019. The Gross Gaming and Betting Revenue for the First Nine Months ending on September 30 is €106.8m. This is a 2.5% increase year on year. For the same period, last year the company posted revenue of €104.2m.
Online Gaming is one of the key sectors for Bet at Home. It includes Casino, Gaming, Poker, and Virtual Sports. The company generated €63.2m. The online Sports Betting, on the other hand, is €43.6m.
The detail report reflects the impact of the marketing for Bet at Home. Players have wagered for a whopping amount of €2.44bn in the first nine months of the year. For the same period, last year the amount was recorded at €2.31bn. The contrast of the choice of the players can also be understood from this. Players wagered around €2.05bn on the Online Gaming. The wagered amount for Sports Betting is €391m.
The Gambling levies and the Betting Fees were increased by 1.5% and it amounts to €15.4m. The VAT on Electronic services was down on the other hand. It was decreased by 40.6% and amounts to €3.5m. The Net Betting and Gambling Revenue has been recorded as €87.9m. This is an increase of 5.7% year on year basis.
What has been phenomenal for Bet at Home is the marketing cost this year. It is €29.3m almost equivalent to the marketing cost of last year. However, there was no major tournament like the FIFA World Cup in 2018. Hence, the pumped-up marketing has brought in good results. The customer base recorded in September 2018 was 5.0m but it has increased to 5.2m which is a remarkable feat.
Earnings before interest, tax, depreciation, and amortization (EBITDA) increased by 12.8% for the company, however. It is recorded at €27m in the first nine months of the year. The figures are similar for the Earnings before Interest and tax (EBIT); and Earnings before Tax (EBT). The EBIT increased to €25.6m from €22.9m whereas the EBT increased to €25.6m from €23.0m
Well, this was the good story for Bet at Home. However, past often haunts the present and something similar happened to Bet at Home. The Austrian Ministry of Finance did a Tax Assesment related to the Linz-based subsidiary. The tax assessment was done for the time period of 2013 to 2018. The Ministry concluded some corporation tax payments. This resulted in the profits of Bet at Home to fall harshly. The profit has been recorded at €5.8m. Last year for the same period, the profit was €14.4m. The company said that a tax payment of €11.9m needs to be made to the Austrian tax authority.
Franz Omer and Michael Quatember, Chief Executives of Bet at Home issued a joint statement. It is said that the group would focus on Marketing in August 2019. The focus is made keeping given the European Football Leagues of 2019-20. The international advertising campaign would be the focus of the company to strengthen the brand value.
The company expects to reach the Revenue between €130m to €143m for the whole year. The expected EBITDA for the whole year is still between €29m to €33m, the joint statement said.