Betbull Plc: Betbull plc ('Betbull') announces the release of group consolidated unaudited financial statements for the half year to 30 June 2008

 
Betbull Plc / Half Year Results 
 
Release of a Corporate News, transmitted by DGAP - a company of EquityStory 
AG. 
The issuer / publisher is solely responsible for the content of this announcement. 
---------------------------------------------------------------------- 
 
Betbull plc ('Betbull') announces the release of group consolidated 
unaudited financial statements for the half year to 30 June 2008 
 
 
1. Financial highlights for the period 
 
 
Betting stakes of EUR 50.9m for the half year up 28% compared to EUR 39.9m 
in HYI 2007. 
 
Net gaming revenue of EUR 8.4m for the half year up by 25% compared to EUR 
6.7m in HYI 2007. 
 
EBITDA (including the joint venture in Madrid) of EUR 0.8m for the half 
year up EUR 0.5m compared to EUR 0.3m in HY1 2007. 
 
Cash position as at 30 June 2008 (including the joint venture in Madrid) of 
EUR 9.5m compared to EUR 8.8m as at 30 June 2007. 
 
EBITDA excluding the joint venture in Madrid of EUR 1.3m for the half year 
and cash position as at 30 June 2008 also excluding the joint venture in 
Madrid of EUR 7.4m. 
 
 
2. Business highlights for the period 
 
 
Germany 
 
Betbull has again achieved growth in turnover and profits from its core 
activities in Germany. Betting stakes were up 28% on the same period last 
year and 30% up on the previous quarter. Gross hold rose by 30% against the 
same period last year and 18% against the previous quarter. 
 
These gains have been realised despite a still unclear legislative position 
and therefore difficult trading environment, giving testament to the strong 
product offer and management skills Betbull employs. 
 
Management remains optimistic about the long term value and potential of 
retail betting in Germany and continues a policy of cautious expansion, 
whilst maintaining a strong presence ready to take advantage of any 
favourable legislative changes in the future. 
 
Spain 
 
The joint venture company BBE (Betbull Bwin Espana) is now fully 
established, with offices in Madrid’s Grand Via and employing 11 central 
office staff and management. The process of technology homologation has 
been successfully completed and all other required documentation including 
the provision of a EUR 12m bank guarantee to the Community of Madrid, has 
been submitted to relevant authorities. It is therefore expected that final 
approval and delivery of the licence will take place in September, when 
government offices return to work after summer recess. 
 
BBE has identified a number of key locations for its first shops and will 
close property deals on those locations as soon as the licence is awarded. 
BBE has a well defined and focused strategy for roll out of retail units 
throughout the Province and it is hoped that the first bets will be 
accepted before the end of the year. 
 
Other autonomous communities within Spain have indicated that they will 
follow Madrid in awarding betting licences and Betbull intends to pursue 
development in those regions as soon as the legislation is announced. 
 
Spain continues to be the main focus of development for the company and 
will offer a clear and stable licensed environment in which Betbull can 
apply already proven retail techniques. 
 
Italy 
 
Betbull took the decision to sell its 4 licences, which were awarded under 
a tender process in 2007, sale proceeds amounted to EUR 0.6m delivering a 
small profit after costs. The decision to sell was taken primarily as a 
result of the company’s policy to focus on core areas, but also because 
opportunities for future development would have been restricted due to 
legislative and operational barriers. At the time of purchase of the 
Italian licences, the company expressed its intention to cautiously monitor 
the opportunities available before committing to a full development 
program. 
 
Online 
 
Planned upgrades to the online platform are in progress, although the 
company does not intend to widely market it online offer outside of the 
retail units from which it trades. The online platform provides a valuable 
complimentary offer to retail clients and absorbs very little in resources. 
 
Other  
 
In areas other than Spain and Germany, Betbull’s policy is to provide a 
betting and bookmaking service to agents as opportunity and legislation 
permits. This strategy allows the company to acquire additional turnover 
and share revenues with agents whilst not absorbing the associated capital 
cost of opening shops and acquiring licences, more importantly not 
diverting the focus of development away from the core projects of Spain and 
Germany. Betbull would evaluate each opportunity on its merits as and when 
it might occur, however this is seen as a minor part of the company’s 
activities. 
 
Commenting on today’s press release, Simon Bold director of Betbull plc 
said: 
 
'I am pleased to announce a positive net result for the half year, with 
earnings before tax amounting to EUR 0.5m, a turnaround on the same period 
last year of EUR 0.7m, in view of the investment Betbull has made in the 
Madrid JV with bwin, this is a pleasing result and demonstrates that we are 
operating a policy of strong financial control. 
 
Betbull is continuing to cautiously fulfil its targets in a solid and 
steady manner, maintaining position as a leading player in Germany at the 
same time maximising revenues from those operations. We are investing in 
the most exciting, fully licensed retail opportunity in central Europe, 
together with our partner bwin, we are building a valuable company, poised 
to become a leading brand in Spanish retail betting. 
 
We have managed our funds wisely, maintaining a healthy overall cash 
position of EUR 9.5m at the end of HY1. We will continue to review costs 
and strive for greater efficiency as the company grows, ensuring that we 
build a solid foundation which will support long term development.' 
 
Betbull plc 
 
Consolidated Profit and Loss account 
 
 
For the half year ended 30 June 2008
2008
(6 months)
EUR
2007
(6 months)
EUR
 
 
 
Betting stakes
50,927,656
39,935,746
Customer winnings
(40,883,812)
(32,264,528)
Gross hold
10,043,844
7,671,218
Other gaming income
504,069
547,857
Commissions to third party agents and bonuses
(2,159,331)
(1,531,584)
Net gaming revenue
8,388,582
6,687,491
Other operating income
262,330
-
Total income
8,650,912
6,687,491
Direct costs and betting taxes
(1,474,134)
(1,216,482)
Gross profit
7,176,778
5,471,009
Personnel costs
(3,019,983)
(2,833,347)
Cost of premises
(1,968,306)
(1,296,114)
Mobility and distribution costs
(480,008)
(442,650)
Other operating costs
(766,080)
(662,748)
Valuation adjustments
7,328
106,202
EBITDA and before share benefit charge
949,729
342,352
Share benefit charge
(97,630)
(31,000)
EBITDA
852,099
311,352
Depreciation
(433,051)
(582.873)
EBIT
419,048
(271,521)
Financial result
47,666
59,693
Profit before tax
466,714
(211,828)
Taxation
(438,053)
(348,963)
Profit/(loss) after tax for the half year
28,661
(560,791)
Attributable to
 
 
- Equity holders of the parent
300,698
(560,791)
- Minority interest
(272,037)
-
 
28,661
(560,791)

 
Certain figures have been restated to conform with the current more 
detailed presentation. Due to the new presentation the following line items 
have been added or restated: 
 
 1. Betting stakes. 
 
 2. Customer winnings. 
 
 3. Other gaming revenue which include income from slot machines, betting 
    fees income, and rentals fees. 
 
 4. Commissions to third party agents and bonuses. 
 
 5. Personnel costs. 
 
 6. Cost of premises which include rental of premises, maintenance and 
    running costs. 
 
 7. Mobility and distribution costs which include travel costs, printing 
    postage and stationery costs, motor vehicle running costs and 
    communication costs. 
 
 8. Other operating costs which include insurance costs, legal and 
    professional costs, accountancy and audit costs and bank charges. 
 
 9. Valuation adjustments which include differences on exchange and 
    differences in valuation of investments. 
 
10. EBITDA is now shown before share benefit charge and after share benefit 
    charge. 
 
11. EBIT. 
 
The above changes are merely changes in presentation. The annual accounts 
format has not been changed. 
 
Betbull plc 
 
Consolidated balance sheet 
 
As at 30 June 2008 
 
 
 
                                                      2008           2007 
                                                       EUR            EUR 
Goodwill, intangible assets and investments     18,908,195     18,462,700 
Fixed assets                                     2,133,554      2,783,742 
Non-current assets                                 195,878        206,133 
Current assets                                   4,551,128      4,794,878 
Cash and cash equivalents                        9,524,887      8,841,503 
Total assets                                    35,313,642     35,088,956 
Equity                                          34,356,519     34,299,994 
Losses                                        (11,406,073)   (10,325,617) 
Reserves                                         5,498,605      5,044,278 
Current liabilities                              5,913,756      5,368,390 
Minority interest                                (299,165)              - 
Long tern liabilities                            1,250,000        701,911 
Total equity and liabilities                    35,313,642     35,088,956 
 
 
 
 
- ENDS -      
 
Contact 
 
David De Marco, Group Finance Director 
 
d.demarco@betbull.com 
Phone +356 21494443 
Fax +356 21480132 
 
Betbull plc 
15 Fetter Lane, 
London EC4A 1JP 
United Kingdom 
 
Betbull plc is registered in England & Wales under the Registration Number 
05044730. 
 
This communication can be downloaded from the website www.betbullplc.com. 
 
About Betbull: 
 
Betbull is an established provider of gaming centred retail entertainment, 
based in London.  Betbull offers its customers principally horse and sports 
betting at licensed betting shops, complemented by slot machines, internet 
betting and sports bars.  Betbull accepts bets based on licences in England 
and Wales, Malta and Germany, and is also licensed in Italy.  In Germany, 
Betbull products are available above all under the 'Wettenleip' brand.  In 
Madrid, Spain, the launch of the retail brand 'bwin' is to be piloted 
following the granting of a licence for a joint venture with bwin 
Interactive Entertainment AG.  Betbull itself has been quoted on the Third 
Market of the Vienna Stock Exchange since October 2004 (ISIN AT0000615331) 
and was established as a joint venture between Fun Technologies Plc and 
bwin Interactive Entertainment AG.  For detailed information on Betbull, 
visit www.betbullplc.com. 
29.08.2008  Financial News transmitted by DGAP 
---------------------------------------------------------------------- 
  
Language:     English 
Issuer:       Betbull Plc 
              15 Fetter Lane, (Bird & Bird) 
              EC4A 1JP London 
              Großbritannien 
Phone:        +356 21480131 
Fax:          +356 21480132 
E-mail:       info@betbull.com 
Internet:     www.betbullplc.com 
ISIN:         AT0000615331 
WKN:          A0DKM0 
Listed:       Freiverkehr in Berlin, Stuttgart; Open Market in Frankfurt; 
              Foreign Exchange(s) Wien 
  
End of News                                     DGAP News-Service 
  
---------------------------------------------------------------------------