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9/5/09 - The hardships of a tough business and economic climate were apparent in the H1 2009 unaudited results released by Betbull this week, which showed a 28.6 percent drop in net gaming revenues to Euro 6.025 million (H1 2008: Euro 8,388 million).
Betting stakes for the six-month period dropped 13 percent year-on-year to Euro 44.3 million from Euro 50.9 million in 2008 while earnings before interest, tax, depreciation and amortisation including its joint venture in Madrid with Austria’s Bwin Interactive Entertainment AG fell by over Euro 2.1 million to come in at a negative Euro 1.318 million.
BetBull’s cash position decreased by Euro 2.5 million from H1 2008 to Euro 5.7 million, and EBITDA declined and went negative Euro 400 000.
German operations saw betting turnover for the first six months of this year sink 13 percent to Euro 44.3 million, which included the turnover associated with the Euro 2008 soccer tournament. Net gaming revenues for the period dropped 28.6 percent to just over Euro 6 million, which Management attributed to ‘industry-wide favourable results for the customer, particularly in the second quarter’.
In Spain, BetBull reports that its joint venture in Madrid had commenced opening betting shops, and anticipates having seven units in operation before the end of Q3 2009.
“The second quarter of 2009 is recognised as being one of the worst trading periods for the sportsbetting industry with results consistently favouring the customer,” said Simon Bold, a director of BetBull. “In addition to poor margins in the second quarter, the German units have experienced a downturn in turnover for the first six months of 2009 compared with the same period last year, which is due in part to the effect of Euro 2008. Turnover has further been hampered by legislative restrictions imposed in certain regions, which has affected some of the group's key locations.”
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