Betbull plc ('Betbull') announces the release of group consolidated audited financial statements
1. Financial highlights for the year
- Betbull reports improved operating and EBITDA margins in 2007.
- EBITDA for the year was €0.03 m compared to €(0.91) m in 2006. While
operating loss was reduced to €(1.26) m from €(1.97) m in 2006. Before
share benefit charges adjusted EBITDA for the year was €0.15 m compared to
€(0.27) m in 2006.
- Gross gaming revenue amounted to €78 m in 2007 (€89 m 2006) while net
gaming revenue reached €13.32 m (€14.95 m 2006)
- Loss after tax amounted to €1.91 m in 2007 (€ 2.57 m 2006) resulting in
€0.22 loss per share (€0.35 2006)
- Betbull maintains a healthy Cash Position of €7.70 m as of 31 December
2007 (€ 8.00 m 31 December 2006).
Expenditures include start up costs incurred in new business development,
particularly in Spain.
2. Business highlights for the year
Germany: Germany has continued to provide strong revenue to the group in
the face of difficult legislative circumstances.
Spain: The JV agreement with Grupo Orenes for operating retail betting in
the Province of Madrid, has been replaced by a JV agreement with bwin
Interactive Entertainment AG. A subsidiary company (Betbull Bwin Espana SA)
has been created, and has been able to submit a license application to the
Autonomous Community of Madrid.
Italy: Betbull is continuing to cautiously explore business development
opportunities, in addition to exploiting the four licences awarded in the
previous period.
Online: The product offering and performance has been improved on the
Primebet platform, which offers a solid online option to existing retail
customers. Casino and games will be added in 2008 and will also be
available to customers on the Betbull betting exchange platform. Further
enhancements to the Primebet website are currently being implemented with
the intention to provide an integrated platform for all the Group’s online
offerings, including the re-launched corporate website.
Other countries: During 2007 Betbull pursued agreements with a number of
agents in European jurisdictions, where Betbull would supply software and
bookmaking expertise on a revenue sharing basis. Revenue is expected from
these relationships in 2008.
Regulatory Update: Betbull is encouraged by the continued determination of
the European Court to contest monopolies in the gaming sector. Whilst the
situation in Germany remains unresolved, resulting in difficult trading
conditions, Betbull has been able to maintain a healthy business.
Spain continues to lead the way in deregulation of the betting sector, with
the expectation that further Autonomous Communities will legislate for the
award of betting licenses in 2008.
Commenting on today’s release Simon Bold, Director of Betbull plc, said:
'I am pleased with the resilience our German operation has shown to the
unresolved regulatory situation that prevails since the ratifying of the
German Gaming State Treaty and I look forward to the ECJ ruling, which I
believe will have a very positive effect for Betbull. We continued to
operate a successful business in Germany and will strive to develop further
in anticipation of liberalisation in the future.
In Spain we are one of the major gaming companies to apply for retail
betting licences in the Autonomous Region of Madrid, whilst the award of
those licences is taking longer than expected, we believe the potential of
this venture is immense. We understand that further licences will be
available in other Autonomous Regions of Spain during the next 12 months
and Betbull intends to take advantage of such opportunities. '
