Bet-at-home.com AG Group has reported significant growth in its online sports betting and gaming business, fuelled by strategic marketing investments and a streamlined operational approach.
The company said its recent focus on targeted marketing and customer engagement drove an 8.9% increase in GGR in the first three quarters of 2024, which reached €37.6m.
The positive momentum reflects a substantial expansion in the company’s core markets, Germany and Austria, despite heightened competition and regulatory challenges.
Bet-at-home reported that it undertook extensive marketing measures ahead of major 2024 sports events, including the European Football Championship in Germany and the Summer Olympics in Paris.
These initiatives included a heightened advertising push for the “bet-at-home” brand and increased efforts to attract new customers, while reactivating dormant accounts.
Due to those campaigns, the group’s marketing expenses rose by 18% year-on-year to €13.8m. The increase highlights the company’s intensified efforts to capture market share and capitalise on high-profile sporting events that traditionally boost customer engagement and revenue.
In addition to marketing advancements, bet-at-home has streamlined its internal processes. It achieved this by outsourcing key corporate functions to external providers and reducing its resource requirements and operational complexity.
This strategic shift has resulted in a 4.8% reduction in personnel expenses compared to the same period in 2023, bringing staff costs down to €6.3m. The company’s focus on efficiency has enabled it to allocate more resources to its marketing initiatives while maintaining manageable operational expenses.
Getting ahead of the game
Breaking down the results by vertical, sports betting revenue increased by 5.1%, while the gaming segment showed a remarkable growth rate of 56.4% year-on-year.
This performance helped boost the company’s EBITDA before special items by 18.6% to €2.8m for the first three quarters of 2024.
Based on this performance, the company has raised its full-year EBITDA outlook to a range between €1.5m and €4.5m, up from the previous projection of -€1m to €2.5m.
While revenue grew strongly, bet-at-home also faced increased operating expenses during the period, which reached €13.5m. This was due, in part, to provisions made for a recent legal ruling in Switzerland.
The ruling, which classifies sports betting as an electronically provided service, subjects Bet-at-home to Swiss VAT, adding a financial burden that was not present in prior years. Additional operating costs included expenses related to claims for the reimbursement of gambling losses, further impacting overall expenses.
Ready to face challenges
In light of these developments, the company’s management has outlined a cautious yet optimistic forecast for the remainder of 2024.
With an eye on the evolving legal landscape in Germany and Austria, the company remains aware of the challenges posed by regulatory uncertainties and customer claim disputes, which could affect future performance.
Nonetheless, the group continues to expect annual gross betting and gaming revenue to fall between €45m and €53m by the year’s end, signalling confidence in its growth trajectory despite regulatory pressures.
Cash reserves remain strong, with the group’s cash and cash equivalents totalling €34.2m as of September 30, 2024. This cash position provides a buffer against any future volatility and allows bet-at-home to continue investing in customer acquisition and platform development.
As the year progresses, the company’s well-timed strategy to focus marketing investments early in 2024 has proven effective in engaging both new and returning customers. Management anticipates that these efforts will yield sustained benefits throughout the remainder of the year.