FL Entertainment is commemorating a robust first six months for its wagering and gaming operations.
In the initial six months concluding June 30, FL Entertainment’s web-based sports wagering and gaming enterprise produced €489.3 million in earnings, a 23.3% surge compared to the corresponding period in the previous year.
FL Entertainment’s online sports wagering and gaming enterprise is managed by the Betclic Everest Group, which possesses Bet-at-home.com in Germany and Betclic.
The company’s total earnings for the initial half of the year amounted to €1.92 billion, a 6.8% year-over-year increase. Revenue derived from content production and distribution reached €1.43 billion.
FL Entertainment CEO Francois Riahi stated that the expansion in total earnings was propelled by an upsurge in active users within the online sports wagering and gaming enterprise, as well as FL Entertainment’s business model.
“We have delivered outstanding half-year outcomes, showcasing the strength of our distinctive and complementary business model, as well as the inventiveness and adaptability of our teams,” Riahi expressed.
“Our online sports wagering and gaming enterprise continues to exhibit double-digit revenue growth across all activities, driven by an increase in active users and our geographical and product diversity.”
Sports wagering and gaming enterprise
In the sports wagering and gaming enterprise, sports wagering earnings accounted for the majority of total revenue, at €389.2 million.
Nevertheless, the gaming division experienced the most significant revenue boost, expanding by 40.5% to €65.4 million.
Poker earnings amounted to €28.6 million, while the remaining €6.1 million stemmed from horse racing wagering.
This expansion was attributed to “rising player counts, product enhancements, and favorable sports betting margins.”
FL Entertainment observed that the number of active participants increased by 36.0% in the initial six months of the year.
Earnings for the First Half
Breaking down total expenditures over the initial six months, external expenses reached €993.5 million, up from €861.3 million. FL Entertainment noted this was due to increased gambling levies, consistent with the upward trend in sports betting and online gaming activity.
Personnel costs amounted to €679.1 million, while depreciation and amortization expenses were €60.3 million. Other operational expenses reached €26.7 million. Operating revenue was €5.7 million.
Taking this into account, operating profit for the period was €169.4 million, down 0.6%.
Other costs—including net debt and other expenses—totaled €147 million. After a net profit share of €1.3 million in associated companies and joint ventures, profit before tax was €21.1 million.
After income tax expense of €9.5 million, net profit for the initial six months was €11.6 million, €29.8 million higher than the first half of 2022.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled €327.3 million, an increase of 8.8%.
By Geographical Location
In terms of geographical location, the majority of FL Entertainment’s revenue (€1.47 billion) originated from Europe. US operations contributed €251 million.
The European continent produced €201 million in earnings, whereas the rest of the globe generated €8 million.
Just in online sports wagering and gaming, Europe brought in €471.1 million, while the rest of the world produced €18.2 million. The United States did not record earnings for this sector.
Earlier this week, FL Entertainment, the parent organization of Bet-at-home, declared that its total betting earnings decreased by 9.3% in the initial six months of the year.
FL Entertainment highlighted that Bet-at-home’s operations have stopped in some legal districts. The decision to withdraw from specific markets has been in the works for the past two years, with Bet-at-home announcing its departure from the Austrian market in 2021.
During this time, Bet-at-home also withdrew from the Maltese market and was suspended by the UK Gaming Commission.
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