The year 2022 presented significant challenges for Bet-at-home. Their revenue declined, while expenditures increased. They experienced a decrease in profits compared to the preceding year, primarily due to their withdrawal from the UK market. The UK government revoked their license, citing concerns about their compliance with regulations regarding money laundering and customer protection. As a result, Bet-at-home opted to completely exit the UK and unfortunately had to lay off some staff.
At present, operators anticipate that earnings in the year 2022 will be impacted by staff reductions.
In the ninth month of the year, Bet-at-home cautioned that its liquidity risk was escalating due to its withdrawal from the Austrian marketplace.
In the full-year financial results for 2022, Bet-at-home’s income was primarily generated from its online sports wagering operations. This business contributed €49 million to total income, a decrease of 13.4% compared to the previous year.
Online gaming income (encompassing casino games and virtual sports products) accounted for the remaining €4.5 million, a substantial increase of 60.7% compared to the previous year.
After deducting €11.3 million in betting fees and gaming taxes (down 2.9%) and value-added tax, which doubled year-on-year to €99,000, net betting and gaming income for the year was €42 million. This was a decrease of 11.6%.
Other revenue added €3.4 million to total income. Bet-at-home did not provide details regarding the composition of these other revenues.
Other operational expenses surged by 128% to €16.2 million. Bet-at-home stated that this was due to various factors, including increased legal and consulting fees, increased expenditure costs associated with the liquidation of Bet-at-home Entertainment Group, and transaction costs.
The operator explained that transaction costs were elevated for the year because the company was no longer able to capitalize certain of its costs in “discontinued operations.”
Advertising expenditures also increased, but to a much lesser extent, by 14.8%. Conversely, personnel expenses declined by 27.4% to €13.5 million.
This led to earnings before interest, taxes, depreciation, and amortization (EBITDA) of €2.1 million, a decrease of 83.9%.
After subtracting depreciation and amortization expenses of €2.2 million, the profit was a loss of €105,000. Costs categorized as “Financial Results” resulted in a pre-tax loss of €690,000.
However, a positive contribution of €1.2 million from income taxes and gains brought the profit from ongoing operations to €551,000. This represents a reduction of 94.8% compared to the same period in the previous year.
Adding the outcome of discontinued operations of €11.3 million, the overall consolidated net profit for the year was €11.9 million.
**Looking Forward**
Bet-at-home declared that it will prioritize increasing outsourcing, revenue growth, and “corresponding adjustments to key procedures” in 2023.
Interestingly, the operator indicated it aims to expand in its “core markets” of Germany and Austria following the closure of its Austrian online casino operations in 2022.
Financially, Bet-at-home stated it anticipates total betting and gaming revenue to be between €50 million and €60 million in 2023.
It also predicts EBITDA to be between a loss of €3 million and a positive contribution of €1 million.
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