BUSINESS

mybet shows love for Euros; Bingo.com reaches small profit; Paddy Power hires two

TAGs: Bingo.com, BSkyB, dominos, myBet, Paddy Power

mybet bingo paddyGerman sports betting provider mybet saw their highest numbers yet in the second quarter as they lauded a successful UEFA European Championship. The company’s consolidated revenue increased by 20 percent to €15.8 million in Q2 2012 whilst the  gross revenue was up 47 percent to €64.3 million. This was all due to an increase in betting stakes of 66 percent to €51.7m with the hold doubling to €7.2m. 56,000 more users signed up for accounts during the quarter with the number hitting 959,000. It seems as though the increased marketing spend ahead of Euro 2012 paid off and they’re hoping this will help the product going into the new football season with Q4 the one where they expect the best results.

Bingo.com saw a minute profit in the second quarter as they were still dogged by losses and a drop in total revenue. Profit from continuing operations, before foreign exchange, improved from ($65,061) in the first quarter of 2012 to $47 in the second quarter. This was as total revenue for the same period dropped by 4 percent to $347,743 with net loss widening from $24,930 to $28,908. Revenue drops were attributed to “unfavourable gaming results late in the quarter” with the loss rising due to a fluctuation in exchange rates.

Jason Williams, Bingo.com’s CEO, commented: “Our strategy with the second quarter was to reduce our marketing costs and focus on player development and retention, which was successful. While we achieved our objective of improving our total operating margin, low gross margins in our casino products late in the quarter and a negative impact from currency fluctuations combined to give us a net loss for the quarter. However, our task is to post an annual net profit for Bingo.com and with the third quarter off to a strong start we believe that milestone will still be reached.”

Paddy Power has hired a former pizza-man and dish philanderer as new members of the marketing team. Danny Russell, former marketing strategy director for BSKYB, joins the firm as insight director and Robin Auld, once at Dominos, becomes the company’s brand director.

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