betandwin.com Reports Results for Q1 2001

Sharp Rise in Betting Turnover, Net Winnings and Registered Customers; Investment in Brand Development Temporarily Depresses Results (with link)


VIENNA, Austria, May 30, 2001 (PRIMEZONE) -- betandwin.com (ASE:BWIN) increased its betting turnover to EUR 13.2 million in the first quarter of 2001. This compares with EUR 2 million in the same period the previous year, a rise of more than 550 percent. Net winnings and net revenues rose to EUR 767,000 and EUR 935,000, equivalent to growth of 135% and 120% respectively. In the same period the previous year, net winnings and net revenues amounted to EUR 326,000 and EUR 424,000. A net winnings margin of 5.83% reflects the strategy communicated by the company of offering customers attractive odds so as to rapidly grow its market share.

Nearly 38,000 new registered customers were recorded in the first quarter of 2001, as against barely 3,400 in the same quarter of 2000. Over 650,000 bets were placed by some 22,000 active bettors, equivalent to an average sum of nearly EUR 20 per bet placed, and nearly 30 bets per active bettor. Results were disproportionately impacted by investments in future growth brought forward to the first quarter of the year. Results for the quarter were temporarily depressed, especially by marketing expenditure of EUR 2.4 million (plus non-cash advertising services contributed by strategic partners totaling EUR 290,000). "By and large, this has now completed our brand development in Austria," explains Manfred Bodner, Co-CEO and Marketing Director. "According to the latest quantitative and qualitative surveys, betandwin.com is now clearly Austria's number one betting provider. We have achieved this position within a remarkably short period of time, and intend to capitalize on it in coming periods."

Personnel expenses and other operating expenses of EUR 955,000 and EUR 1.1 million (including betting charges of EUR 324,000) were also up compared to the previous quarter figures of EUR 239,000 and EUR 335,000. This was attributable to measures designed to enable the company to handle its ongoing internationalization optimally in terms of both staff and technology. EBITDA and EBIT for the first quarter totaled -EUR 3.53 million and -EUR 4.22 million respectively, and a consolidated result of -EUR 3.14 million was reported. A marked improvement in operating results is anticipated, starting from the second quarter of 2001 onwards. The achievement of a break-even month-on-month operating cash flow by the end of 2001 therefore still seems a realistic goal.


 Key data:
 
 In accordance with IAS,  Q1/2001    Q1/2000     2000     1999    1998
  EUR 000, except %
 Betting turnover         13,169       2,004    17,302   5,379   2,871
 Net winnings            -12,402      -1,678   -15,226  -4,754  -2,656
 Gross profit                767         326     2,076     625     215
 As % of betting turnover    5.8%       16.3%    11.99%  11.61%  7.48%
 Profit                      935         424     2,490     731     279
 Expenses                 -4,462        -733    -9,678  -2,617    -945
 EBITDA                   -3,527        -309    -7,189  -1,886    -666
 EBIT                     -4,223        -371    -8,144  -2,226    -806
 Consolidated net result  -3,141        -233    -5,105  -1,375    -534
 Balance sheet total      61,990      67,843    63,993   3,412     914
 FAV and liquid funds     42,071      55,799    45,165   1,217     102
 Shareholders Equity      55,689      64,633    58,829   2,618      23
 as % of balance sheet
 total                     89.84%      95.27%       92%     77%     3%
 Employees                    58          22        50      13       7
 Registrations            37,925       3,342   117,807   8,970    n.a.
 Number of bets placed   651,577     140,063 1,074,217 290,237    n.a.

betandwin.com Interactive Entertainment AG is a public company based and licensed in Austria. The company's strategic concept is based on the pillars of betting, information and entertainment. Listed on the Vienna Stock Exchange since March 2000, betandwin.com in-tends to use its unique Internet presence coupled with strong strategic partnerships to be-come one of the world's leading online gaming companies appealing to a wide public. Please visit our websites at www.betandwin.com or our WAP services at wap.betandwin.com

For this press release, including key data, as PDF click on the link below:

Attachments: http://reports.huginonline.com/822856/90431.pdf



            

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