Betbull Holding SE
Betbull Holding SE (‘Betbull’) announces the release of group consolidated audited financial statements for the year ended 31st December 2012

Betbull Holding SE

Press Release – 28th March 2013

Betbull Holding SE ('Betbull') announces the release of group consolidated audited financial statements for the year ended 31^st December 2012

1. Financial highlights for the year 2012

– Betting stakes of EUR 72.5m down 3.7% compared to EUR 75.3m last year.

– Net gaming revenue of EUR 13.0m down 5.1% compared to EUR 13.7m last year.

– EBITDA of EUR (6.5)m (including impairment charge of EUR (5.5)m) down EUR (6.4)m compared to EUR (0.1)m last year.

– Adjusted EBITDA (before goodwill impairment and share benefit charges) of EUR (1.0)m down EUR (0.9)m compared to EUR (0.1)m last year.

– Loss for the year of EUR (6.9)m up EUR 6.7m compared to loss of EUR (0.2)m last year.

– Cash position as at 31^st December 2012 of EUR 6.7m compared to EUR 8.5m as at 31^st December 2011.

The audited financial statements and the annual report for the year ended
31^st December 2012 will be published on our corporate website www.betbullse.com.

– Business highlights in 2012

Betbull's business performance in 2012 was mainly affected by a steadily increasing grey market, the consolidation of Betbull's existing network of betting outlets and an unusual low betting margin in Q3/2012 leading to a decline in betting stakes and profit. However the performance of Betbull's gaming halls and slot machines in the betting outlets is stable and promising even though competition is increasing steadily.

Betbull's EBITDA was additionally negatively affected by a goodwill impairment of EUR 5.5m. In accordance with IAS 36 Betbull regularly monitors the carrying value of its intangible assets by determining the future cash flow projections and comparing these to the carrying value of goodwill. The impairment test was performed on the two segments (i) betting and (ii) gaming halls/ slot machines both located in Germany. Due to the uncertainty of the outcome of the current tender process (issuance of only up to 20 sports betting licenses valid in Germany under the State Treaty on Gambling ('Erster Glücksspieländerungsstaatsvertrag')) Betbull used three different scenarios in the impairment test (including a scenario in which no license will be obtained) and all three scenarios have been weighted with an occurrence probability. Based on this approach the segment 'betting' has been impaired by EUR 5.5m.

Commenting on today's press release Georg Höcherl, Managing Director of Betbull Holding SE, said:

'We really appreciate the work of the licensing authority carrying out the tender process. Unfortunately all efforts to waive the highly controversial debated limitation of licenses to be issued failed. Based on the uncertainty whether or not Betbull will obtain one of the 20 sports betting licenses we need to impair EUR 5.5m of the goodwill allocated to the segment of betting. We hope that the regulation of the gaming market in Germany will be executed in due course and a fair manner. We believe that Betbull is prepared to expand its retail betting business in a fully regulated market fast and significantly – through organic growth, acquisitions and strategic partnerships.

Betbull already managed to obtain two sports betting licenses in Schleswig-Holstein – this was the first step to be recognised as a fully licensed and fully complaint sports betting operator in Germany.'

Betbull Holding SE
Consolidated income statement
for the year ended 31 December 2012

Betbull Holding SE
Consolidated balance sheet
as at 31 December 2012

Betbull Holding SE
Consolidated cash flow statement
for the year ended 31 December 2012

– ENDS –

Contact

David De Marco.

d.demarco@betbull.com
Phone +356 21494443
Fax +356 21480132

Betbull Holding SE
Mariahilfer Straße 116
1070 Vienna
Austria

Betbull Holding SE is registered at the Commercial Court of Vienna under the Company register Number FN 353397b (formerly registered in England & Wales under the Registration Number SE12).

This communication can be downloaded from the website www.betbullse.com.

About Betbull:

Betbull is an established provider of gaming centred retail entertainment, based in Vienna, Austria. Betbull offers its customers principally horse and sport betting at licensed betting shops, complemented by slot machines, internet betting and sport bars. Betbull accepts bets based on licences in Malta and Germany. In Germany, Betbull products are available above all under the 'Wettenleip' brand. Betbull itself has been quoted on the Third Market of the Vienna Stock Exchange ('Other Securities') since October 2004 (ISIN AT0000A0KPX9, formerly AT0000615331) and was established as a joint venture between Fun Technologies Plc and bwin Interactive Entertainment AG. For detailed information on Betbull, visit www.betbullse.com.