first-quarter revenue dips 5%

Finance News

The AG Group has announced its first quarter 2023 financial results.

In early February, after several months of preparation, the Malta-licensed offering (domain .com) of bet- Internet Ltd. was launched on the well-known outsourced platform iGaming of the software provider EveryMatrix.

The customers can benefit from a much broader betting offering, numerous new functionalities and attractive bonuses. The outsourcing of the German-licensed platform to will be completed in the nearest future.

Over the course of the 2023 financial year, the AG Group intends to have key corporate functions performed by the outsourcing partner, and the Group will focus exclusively on customer-relevant components that cannot be sourced or operated externally. The outsourcing order volume will be based on the net gaming revenue generated from online sports betting and is expected to reach a low single- digit million Euro per year going forward.

Gross betting and gaming revenue in the first quarter 2023 amounted to EUR 13.3 million, which is 5.1% lower than in the first quarter 2022 (1Q 2022: EUR 14.0 million). This resulted mainly from regulatory developments in the core market of Germany, namely due to comprehensive implementation of cross- product monthly betting limits starting from July 1, 2022.

Personnel expenses decreased by 43.7% year-on-year to EUR 2.5 million, due to two successive restructuring programs implemented in the 2022 financial year. Marketing expenses declined to EUR 2.7 million, which is 21.9% below the level of the first quarter 2022 (1Q 2022: EUR 3.5 million).

This year the marketing focus will be made on advertising measures to the start of the football season 2023/2024 in the second half 2023, accompanied by the launch of a new German-licensed offering at Other operating expenses in the first quarter 2023 amounted to EUR 3.5 million compared to EUR 5.1 million in the first quarter 2022.

The Management Board continues to expect the AG Group to generate gross betting and gaming revenue in the range of EUR 50 million and EUR 60 million and EBITDA in the range of EUR -3 million and EUR 1 million in the 2023 financial year.