Betbull to focus on Germany and Spain as revenues increase

As a result of expenses incurred due to the company’s joint venture in Madrid, Betbull’s losses after tax worsened by 52% to 1.2 million euros during the period.

The company saw a 28% increase in betting stakes to 74 million euros, despite the unfavourable legislative environment in the company’s main market of Germany, leading Betbull to a 25% rise in gross hold to 14 million euros.

Excluding the joint venture in Madrid the company’s earnings before interest, tax, depreciation and amortization amounted to 1.3 million euros, but was only 1 million euros when including the joint venture.

Betbull said that its joint venture Betbull Bwin Espana (BBE) is one of only four licensed operators in the Province of Madrid, and expects a full roll-out of approximately 100 betting premises in the next four years. The company believes that other Provinces in Spain will follow Madrid in licensing retail betting, and BBE intends to extend operations when possible.

Simon Bold, Director of Betbull plc said: "Betbull achieved a solid trading result in the 9 months to 30 September, this has been distorted somewhat by the group’s investment in the Spanish market through the Joint Venture company BBE, whose financial results are fully consolidated into the foregoing accounts.

"Early signs in the Spanish market are very promising and we see this market as the most exciting opportunity in Europe at the moment. First shops will open in the next one or two months and Q1 will see the first trading reports from Madrid activities.

"The company continues to operate a tight financial control and closely monitor costs. The concentration of resources on just two regions, Germany and Spain will help to streamline the company and we will curtail operations not associated with these core areas during the coming months," he said.

As at September 30th, Betbull held a cash of 9.2 million euros including the joint venture, compared to 8 million euros last year.