Fifth Consecutive Loss For Betbull

Betbull Holding SE has announced its audited financial results for last year revealing a 21.1 percent increase in net gaming revenues to €16.094 million year-on-year ‘despite the unfavourable legislative environment’ in its core market of Germany.

London-based Betbull is a major provider of gaming-focused retail entertainment in continental Europe and accepts betting transactions under licences issued in Malta, Germany, England and Spain.

However, the firm reported a loss for the twelve months of €4.3 million, its fifth successive deficit, from a deficiency of €1.9 million in 2007. It reported that this was due, in part, to a €1.9 million write off associated with closing its Betpoint SL subsidiary in Andalusia.

Betting stakes rose 28.5 percent year-on-year to €100.4 million from €78.1 million while Betbull reported that it had increased its annual cash position by slightly over seven percent as of December 31, 2008, to €8.2 million.

In September, Betbull announced a joint venture with Austria’s Bwin Interactive Entertainment AG to operate retail betting in Madrid under the name Betbull Bwin Espana SA. It stated that earnings before interest, taxes, depreciation and amortization (EBITDA) excluding this venture came in at one million Euros with a cash position of €7.6 million.

”Betbull has again achieved handsome growth amid difficult trading conditions in the core German market, increasing turnover to over €100 million as compared to €78 million last year,” said Simon Bold, Director for Betbull

“Net gaming revenue of €16 million against €13 million last year showed a consistency in operating margin, which highlights the groups competence in the retail betting sector.

”Group activities in Germany continue to provide solid net results, supporting the significant start-up funding required in Madrid, where the joint venture, Betbull Bwin Espana SA, is in the process of opening the first trading units. We believe our investment in Madrid will provide significant contributions to group profits in the future.

”The concentration of resources on just two regions, Germany and Spain, will help to streamline the company and reduce costs. Non-core activities, including online exchange betting, are being discontinued and will be eliminated during 2009.”