Bet-at-home EBITDA falls 85% following rollercoaster 2022
Austrian operator cites regulatory change in Germany and the withdrawal from the UK market as core drivers as it sets low EBITDA target for 2023
Bet-at-home posted an 85% downturn in full-year 2022 EBITDA as the Austrian operator said it is looking towards improved “efficiency of operational processes” in 2023 following a tumultuous 12 months.
EBITDA fell by 85% from €14m in 2021 to €2.1m in 2022, as increases in marketing and operating expenses as well as a downturn in gross gambling revenue (GGR) impacted the firm.
Full-year 2022 GGR fell by 9.8% year on year (YoY) to €53.5m (£47.55m) after pulling out of the UK in July 2022.
Bet-at-home confirmed that since exiting the UK it has refocused resources on the German market and shifted to third-party tech after outsourcing to EveryMatrix.
Bet-at-home recorded €49m in revenue from its sports betting arm, a decrease of 13.2% YoY from €56.6m in 2021.
Online gaming revenue increased by 61% YoY from €2.8m to €4.5m in FY2022.
After the operator took betting taxes and gambling levies into account, the firm’s net gaming revenue (NGR) fell by 12% to €42m.
Advertising expenses for FY2022 came in at €13.6m, which was almost €2m up on the €11.9m in 2021.
Personnel expenses in 2022 fell by more than €5m to €13.5m, as the firm slashed its workforce in late July 2022 as key functions were outsourced to EveryMatrix.
The Betclic Everest Group-owned firm shed 45 jobs following the outsourcing agreement to supplant its in-house platform with the supplier’s tech stack.
Other operating expenses increased by almost €10m to €16.2m, which bet-at-home attributed to increased legal and consulting fees and transaction costs.
Looking ahead, the bet-at-home board stated the change in its approach towards outsourcing would be the key focus area of its operating activities in 2023.
It also said that the operator’s strategic revenue focus in 2023 will be expanding in its core markets of Germany and Austria.
Bet-at-home will also offer all of its products in Germany in 2023 after securing a five-year licence in the region to offer sports betting and online slots.
The board further confirmed that the money gained from the reduction in staffing and various cost-cutting measures would be used primarily for customer acquisition and marketing measures for existing players.
In a statement alongside the results, the board said: “The management board expects an increase in market shares in the existing core markets, driven by a more attractive product experience, resulting from a redesign of the platform and the company’s sports betting products, as well as by a focus of internal capacities on marketing and customer relations management.”
Alongside this, the board said it expects GGR to be between €50m and €60m in 2023 and EBITDA to be around negative €3m and €1m.