Bet-at-home said that it had been affected by the introduction of cross-product and cross provider monthly betting restrictions in Germany. These took effect in 2022. It also said it had been affected by the mandated reporting of increased deposit limits, which took place in Q2 2023.

Despite this, Falchetto said that the €11.7m revenue was stable in comparison to Q4 2023, and was therefore within normal limits.

“Gross betting and gaming revenue in the first quarter 2024 amounting to €11.7m was lower than in same period of last year, due to the negative impact of regulatory developments in the core market of Germany, however remained stable compared to the previous quarter and is therefore within the expected range for the year 2024,” said Falchetto.

Falchetto added that Bet-at-home would centre its marketing focus on its core markets of Germany and Austria in H1 2024. This is due to the upcoming European Football Championship, which begins in mid-June and will take place in Germany. This explains why marketing expenses are up-year-on-year for Q1.

The operator noted that its previously-announced strategic transformation will continue throughout the 2024 financial year. Bet-at-home said that technological development was a focus in Q1, with an ongoing internal focus on introducing a customer loyalty programme based on machine learning.

Net revenue also falters in Q1

Online sports betting accounted for €10.6m in revenue, a drop of 13.0% year-on-year. Conversely, online gaming revenue edged up, rising 4.0% to €1.0m.

Betting fees and gambling levies for Q1 totalled €2.5m. After considering this, and €4,000 in VAT on electronic services, the total net betting and gaming revenue was €9.1m for the quarter. This also marked a decline, falling 10.7% year-on-year.

As mentioned previously, the rise in advertising expenses was notable during the quarter. This increased by 65.7% to €4.5m yearly. Personnel expenses dipped 17.2% to €2.0m. Other operating expenses totalled at €2.5m, with total expenses offset just slightly by €792,000.

EBITDA for the quarter was €744,000, a decline of just over €1m year-on-year. Depreciation and amortisation of €352,000 left the EBIT at €391,000.

Looking ahead to the remainder of 2024, Bet-at-home expects gross gaming and betting revenue to be between €45m and €53m. EBITDA before special items is projected to lie between -€1m and €2.5m.