retains full-year outlook despite 12% slump in Q3 revenue

Finance News

The AG Group intends to have key corporate functions performed by outsourcing partners by the end of the 2023 financial year.

In this regard, in February 2023, the Malta-licensed offering (domain .com) of Internet Ltd. was outsourced to the reputable iGaming software provider EveryMatrix. The outsourcing of the German-licensed offering at was successfully completed in October 2023.

The group will henceforth concentrate internal development and operation solely on those customer- and revenue-relevant components that cannot be sourced externally, or can only be done so insufficiently.

Gross betting and gaming revenue in the first three quarters of 2023 amounted to EUR 34.5 million, which is 11.6% lower than the previous year’s level (1Q-3Q 2022: EUR 39.1 million).

This resulted mainly from regulatory developments in the core market of Germany, particularly the imposition of cross-product and cross-provider monthly betting limits effective from July 1, 2022, as well as adverse sporting results. Whereby the over-proportional number of favorites winning in the most prominent football leagues significantly affected the profit margin in the sports betting segment in the third quarter of 2023.

Also relevant was a weaker performance of the online gaming segment, which was negatively impacted by restrictions on the licensed offering compared to the previous year.

The Management Board expects gross betting and gaming revenue of the AG Group for the 2023 financial year in the range of EUR 44 – 48 million and nevertheless an EBITDA in the upper range of the previously announced forecast from EUR -3 million to EUR 1 million (as reported in the interim financial report 2023, there may arise additional one-off effects from the winding-up of Entertainment Ltd. (in Liquidation)).