B90 Holdings has published its financial results for the fiscal year 2023, showcasing a notable improvement in revenue but also an increase in net losses. The marketing and service provider reported a revenue of €3 million ($3.3 million), marking a 42.9% increase compared to the previous year. However, this growth was overshadowed by a 27.9% rise in net losses, reaching €5.5 million. The increased losses were primarily attributed to impairment charges related to the Bet90.com brand, higher payment service provider expenses for certain brands, and additional market spend.
Funding and Strategic Investments
In a significant move to bolster its financial position, B90 Holdings successfully raised €6.6 million in funding before transaction costs. This was achieved through convertible loan notes and equity placements, with notable examples including a €2 million funding round completed in September 2023. This financial injection facilitated the acquisition of the Swedish marketing company Emwys, specializing in pay-per-click advertising. This acquisition is expected to enhance B90’s lead generation capabilities and strengthen its market presence.
B2B Rebranding and Strategic Shift
November 2023 marked a pivotal moment for B90 Holdings as it transitioned its operations from a B2C model to a B2B focus. The Bet90.com brand was relaunched as an affiliate site, utilizing various subsidiaries of B90 Holdings to generate leads. These platforms include Tippen4you, Oddsen.nu, and the recently acquired Emwys. This strategic shift aims to leverage the strengths of these subsidiaries to drive growth and profitability.
Ronny Breivik, speaking to Trafficology in April, highlighted the necessity of this transformation for a smaller player like B90 Holdings. He emphasized the need to reinvent the wheel and devise a plan to achieve the company’s long-term objectives. Breivik described 2023 as “the year in which we transformed B90,” signifying the importance of the strategic realignment.
Subsidiary Performance and Challenges
Among B90 Holdings’ subsidiaries, Spinbookie, acquired in 2021, was specifically noted for its increased payment service provider expenses in 2023. These expenses, along with other operational costs, contributed to the overall financial challenges faced by the company. However, the rebranding and strategic focus on B2B operations are expected to mitigate these challenges and enhance subsidiary performance.
Future Outlook and Strategic Goals
Looking ahead, B90 Holdings has reported positive adjusted EBITDA profits for the first quarter of 2024, with each month generating a profit. The company has forecasted a 66.7% year-on-year increase in revenue for FY24, with an anticipated growth of 58.3% in FY25. This optimistic outlook is supported by the company’s strategic shift to B2B operations, a robust management team, and an improved balance sheet.
Breivik expressed confidence in the company’s future, stating, “Our refocus on B2B operations, coupled with a strong management team and Board, and a much stronger balance sheet, positions us well to achieve our goal of returning to profit.” He also noted that efforts to reduce operating costs and leverage the new business model have already resulted in much improved EBITDA in the first quarter of 2024.
B90 Holdings’ financial performance in 2023 reflects both the challenges and opportunities faced by the company. The significant increase in revenue demonstrates the potential of its strategic initiatives, while the rise in net losses highlights areas for improvement. The successful fundraising and acquisition of Emwys signal a strong commitment to growth and market expansion.
The strategic shift from B2C to B2B, along with the rebranding of Bet90.com, marks a crucial step in the company’s evolution. With positive EBITDA reported in the first quarter of 2024 and an optimistic outlook for the coming years, B90 Holdings appears well-positioned to achieve its long-term goals and return to profitability.