Mybet performance in the first quarter of 2015 was hindered due to the decreased player activity & margin impacts

It has been reported that Germany sports betting operator mybet has been faced by a gradual decrease in its SE H1 2015. This has been subject to the decrease by the number of players involved in the curriculum. Though there was an increase in group revenue which went up by 5.5%, the resultant had no any impact on the earnings and profits which oversaw a loss of €238,000 which prompted the firm to incorporate changes over the period.

The several changes that were incorporated were meant to be crucial in the transition of the company in a nearby future in terms of its growth. This would be achieved by the means of putting in place channels that are cost-intensive as well as insertion of good life time revenue for players.

In addition mybet was also hit by a drastic decline in the digital operating margins which fell down by 2.3%. It was noted also that company had overseen the fall of its active clients which fell by a whopping 10%. The number fell from 127,000 in the H1 2014 to current 114,500. This was shocking as the firm had an average active player of 21,000 every month.

However, despite all these downfalls, the company claimed to have recorded little increase in various sectors. It was said that the mybet had a drastic increase in the mobile operation activities which went up by 387% in revenue during the Q2. This has been seen as the key factor to the development of mybet.

The new mybet CEO Zeno Ossko who took charge in July from Sven Ivo Brink claimed that there has been a higher rate in which people win and has resulted to a higher payout to the winnings. This was followed by a downfall in the lower hold margin to 18.9% from the previous 19.9%. The two aspects led to the bad development in betting stakes that had negative impacts on the earnings as well as revenues. Profitability expressed as earnings before interest and taxes (EBIT) was hit by pressure from these two factors.

He concluded that this year the company will be focused mainly on the issues pertaining both the customers’ service delivery and their perfect products rendering.

This article is published in: Betting companies, Betting Operators Finances
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