Mybet in profit warning after platform switch and Greek struggles
Operator expected to post seven-figure loss in 2015 as costs associated to new platform and problems in Greece hit bottom line
Mybet adjusted its 2015 financial year EBIT forecast down to a single-digit million euro loss after reporting additional costs related to its recent platform switch and struggles with its Greek operation.
The previous EBIT forecast for the year had been negative 500,000 but will now likely be at least double that after yesterday’s announcement, although the board stressed the downgrade was a result of non-recurring costs.
The biggest hit was a 5.2m non-cash write-off associated with the introduction of a new technology platform.
In May mybet announced a deal with provider Amelco to “comprehensively overhaul” its sportsbook with a focus on system stability, with new CEO Zeno Ossko telling eGaming Review in August that he expects to launch with the new platform by the end of the year.
But during the firm’s Q2 results, mybet warned that the investment necessitated by the project “will weigh on 2015 earnings” and added that the measures would result in a sustained improvement in profit from 2016.
The operator has also taken a hit in Greece, saying that capital controls had proven to be “a burden on the industry and consequently also on the activities of mybet”.
However, it said the company had taken measures to adjust to the new circumstances that would “enable it to continue its activities in Greece successfully going forward”.