betbull Holding SE, formerly betbull plc, ('Betbull') announces the
release of group consolidated financial statements for the quarter ended 31
March 2009
1. Financial highlights for the period
- Betting stakes of EUR 21.1m for the quarter down 20% compared to EUR
26.4m in QIV 2008 and down 5% compared to EUR 22.2m in QI 2008.
- Net gaming revenue of EUR 4.0m for the quarter down 10% compared to EUR
4.4m in QIV 2008 and up 5% compared to EUR 3.8m in QI 2008.
- EBITDA (including the joint venture in Madrid) of EUR 0.1m for the
quarter up EUR 2.8m compared to EUR (2.9)m in QIV 2008 and down 67%
compared to EUR 0.3m in QI 2008.
- Cash position as at 31 March 2009 (including the joint venture in Madrid)
of EUR 7.6m compared to EUR 8.2m as at 31 December 2008.
- EBITDA excluding the joint venture in Madrid of EUR 0.5m for the quarter
and cash position as at 31 March 2009 also excluding the joint venture in
Madrid of EUR 6.9m.
2. Business highlights for the quarter
Germany: The business continues to provide consistent and solid results
despite the challenging legislative conditions. While turnover for Q1 2009
was down 5% on the same period last year, NGR was 5% higher at EUR 4.0m and
in line with forecasts.
Betbull remains confident about the long term opportunity for retail
betting in Germany.
Spain: The development of Betbull Bwin Espana SA has accelerated during the
quarter. The first 3rd party premises opened in February and one 'own'
premises under the brand 'w1nners' has been added, with two further
premises under reformation.
Online: The group's online activities are limited to providing a
complimentary product for retail clients. Betting exchange activities have
been curtailed and at present there are no plans to increase online product
offers.
Other activities: Betbull is concentrating its resources entirely on the
German and Spanish markets.
Commenting on today's release Simon Bold, Director of Betbull Holding SE,
said:
'The Q1 performance is very satisfactory, particularly given that we have
invested heavily in Betbull Bwin Espana SA. Betbull recorded a positive
EBITDA of EUR 0.1m down EUR 0.2m on the same period last year, due mainly
to the company's investment in Madrid.
Our German business has again proved resilient to the difficult conditions
in that jurisdiction.
In Spain we have made significant progress this quarter, opening the first
premises and securing the purchase of further licensed premises which will
be converted into 'w1nners' branded outlets offering a full range of
betting and gaming products in a sports bar environment. We are confident
that our concept of predominantly 'own' shops will prove to be the
successful formula, benefiting from the strong gaming machine revenues in
Spain, as well as the rapidly growing sports and greyhound markets.
Betbull has now completely exited the online betting exchange business and
will benefit from the associated cost savings during the forthcoming
months. Other online activities are restricted to providing a web based
service to our retail clients, we do not intend to expand those activities
during this year and there will not be any allocation of marketing funds.
Our energy and funds are very clearly focused in the sector of retail
betting in our core market in Germany and the very quickly growing and
fully licensed retail market in Madrid. We will compete for licences in
other Spanish autonomous communities as and when they become available.
betbull Holding SE is continuing and close to completing the process of
relocation from London to Vienna, part of the overall plan to reduce costs
and streamline central and operational activities.
Second quarter hold margins have been disappointing to date, with football
results particularly favouring clients..
Betbull Holding SE
Consolidated Profit and Loss account
For the quarter ended 31 March 2009
2009 2008
(3 months) (3 months)
EUR EUR
Betting stakes 21,064,192 22,157,748
Customer winnings (16,165,466) (17,544,095)
Gross hold 4,898,726 4,613,653
Other gaming income 302,897 233,759
Commissions to third party agents
and bonuses (1,206,050) (1,011,784)
Net gaming revenue 3,995,573 3,835,628
Other operating income 54,234 205,717
Total income 4,049,807 4,041,345
Direct costs and betting taxes (731,540) (651,812)
Gross profit 3,318,267 3,389,533
Personnel costs (1,596,717) (1,463,038)
Cost of premises (954,151) (992,390)
Mobility and distribution costs (182,541) (208,881)
Other operating costs (478,942) (396,946)
Valuation adjustments 68 4,662
EBITDA and before share benefit charge 105,984 332,940
Share benefit charge (29,449) (48,815)
EBITDA 76,535 284,125
Depreciation & amortisation of investments (227,571) (282,194)
EBIT (151,036) 1,931
Financial result (21,621) 8,212
Loss before tax (172,657) 10,143
Taxation (275,793) (244,562)
Loss after tax (448,450) (234,419)
Attributable to
- Equity holders of the parent (237,063) (96,968)
- Minority interest (211,387) (137,451)
(448,450) (234,419)
Betbull Holding SE
Consolidated balance sheet
As at 31 March 2009
2009 2008
EUR EUR
Goodwill, intangible assets and investments 17,641,590 18,893,195
Fixed assets 1,854,784 2,293,737
Non-current assets 281,704 195,878
Current assets 4,450,276 3,596,824
Cash and cash equivalents 7,568,827 10,079,621
Total assets 31,797,181 35,059,255
Equity 29,496,781 34,356,518
Losses (10,118,968) (11,746,414)
Reserves 5,343,017 5,449,790
Current liabilities 4,185,078 5,913,940
Minority interest (1,169,603) (164,579)
Long tern liabilities
- Shareholder's convertible loan 2,240,000 1,250,000
- Loan to Betbull Bwin Espana SA 1,820,876 -
Total equity and liabilities 31,797,181 35,059,255