DGAP-News

mybet Group: First-quarter operating performance still subdued despite progress in retail business

DGAP-News: mybet Holding SE / Key word(s): Quarterly / Interim Statement
mybet Group: First-quarter operating performance still subdued despite
progress in retail business

12.05.2016 / 08:00
The issuer is solely responsible for the content of this announcement.

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mybet Group: First-quarter operating performance still subdued despite
progress in retail business

- Revenue in first quarter well below prior-year figure, but EBIT shows
improvement

- Greek market and known limitations from existing online platform
putting brakes on operating business

- Approval process for sale of subsidiary C4U Malta Ltd. still not
completed

- Management Board confirms revenue and earnings forecast but postpones
launch of new online platform

Kiel, May 12, 2016. The mybet Group ended the first quarter of 2016 with
revenue of EUR 14.9 million and an operating result (EBIT) of EUR -467
thousand. In the Quarterly Statement published today, mybet therefore
reports on the one hand a palpable fall in revenue of around EUR 1.8
million compared with the prior-year figure. On the other hand the EBIT
achieved represents a clear improvement of EUR 222 thousand, year on year.
The net loss for the first quarter came to EUR -802 thousand, which again
marks an improvement of EUR 76 thousand.

The main reason for these operating results which are as a whole not
satisfactory for mybet was the weak revenue performance in online business,
both from sports betting and in the Casino & Poker group segment. The
causes included on the one hand the ripple-down effects of the capital
controls in Greece, which - while no longer preventing mybet's activities -
initially made it necessary to win back and activate all its customers
there. This produced a much lower revenue contribution from Greece compared
with the prior-year quarter, when this factor was absent. On the other hand
the known limitations regarding the appeal and product breadth of the
existing online platform are inhibiting the desired operational momentum
until the new system is rolled out. Nor was the very pleasing revenue
performance in the retail area, in other words the physical betting shops,
sufficient to compensate for these burdens. By contrast, the improved EBIT
reflects the effectiveness of the measures taken to optimise internal
processes and structures, to improve efficiency and the strict cost
discipline.

Official approval of C4U sale still pending