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
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