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SPORTSBOOK - CASINO - GAMES - POKER Imprint Auditor’S Auditor’S Report Group Group Management Report CONTENTS SPORTSBOOK - CASINO - GAMES - POKER Imprint Auditor’s Auditor’s Report Group Group Management Report CONTENTS REPORT BY THE MANAGEMENT BOARD ....................................................... 3 Statement of Changes in IFRS Equity Group REPORT BY THE SUPERVISORY BOARD ........................................................ 9 CONSOLIDATED STATEMENT OF FINANCIAL POSITION ............................... 13 Consolidated Statement of Cash Flows CONSOLIDATED STATEMENT OF INCOME ................................................... 17 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ........................... 21 CONSOLIDATED STATEMENT OF CASH FLOWS ........................................... 53 STATEMENT OF CHANGES IN IFRS GROUP EQUITY ..................................... 57 Notes to the Con- solidated Financial Statements GROUP MANAGEMENT REPORT ................................................................. 61 AUDITOR’S REPORT ................................................................................... 71 Consolidated Statement of Income IMPRINT ..................................................................................................... 75 Consolidated Statement of Financial Position Report by the Supervisory Board Report by the Management Board 1 FIS Team Tour 2011 2 MANAGEMENT BOARD REPORT BYTHE 3 Report by the Report by the Consolidated Consolidated Notes to the Con- Consolidated Statement of Group Auditor’s Imprint Management Supervisory Statement of Statement of solidated Financial Statement of Changes in IFRS Management Report Board Board Financial Position Income Statements Cash Flows Group Equity Report Report by the Management Board Betting revenue Dear Equity Holders, 2010 1500 2010 was also a challenging year for the bet-at-home.com AG Group, which we were able 1200 to master once again with great success thanks to the eff orts of all our staff . The FIFA World 2009 900 Cup in South Africa in June and July 2010 was a major sports event, which contributed very positively and sustainably to our growth as a result of highly targeted marketing activities. For EUR million 600 example, we were able to significantly increase total revenue from EUR 927,169,903 in 2009 300 to EUR 1,474,100,775 in 2010, an increase of 59.0%. Moreover, the most important perfor- mance figure in the eGaming sector, gross earnings (hold), rose from EUR 42,924,000 in 2009 0 to EUR 66,146,000 in 2010 (an increase of 54.1%). As we continue to stand by our growth strat- egy, we have once again reinvested most of our revenue in our expansion plans and in strength- ening the bet-at-home.com brand, and will continue to do so also in 2011. We were therefore Net profit able to further strengthen our competitive position in the eGaming market also during the 2010 80 financial year, which is becoming ever more competitive. 70 2010 60 We significantly expanded our games range in 2010 in order to be able to maximise the en- 50 2009 tertainment value for our customers. The games product segment has been extremely well 40 EUR million received by our customers, which is why we intend to further expand this segment successively 30 also in the coming year. 20 10 We were also able to make the casino segment more attractive by reorganising it into a new 0 multi-currency casino and introducing new casino games. In addition, we once again organ- ised two successful bonus schemes in 2010, as a special reward for our bet-at-home.com ca- sino customers. Registered users 2,5 2010 In the sports betting segment, we further promoted the integration of live streams. This makes 2,0 2009 it possible to select various sports events on a daily basis from an ever increasing number of live broadcasts. The expansion of live streams particularly strengthens the live betting segment, 1,5 where the number of specialty bets on off er is expanded in parallel with live streams on a con- milliion 1,0 tinuous basis. The live betting segment has been very well received by our customers and was among the areas that demonstrated disproportionate growth within our Group in 2010. 0,5 The introduction of new payment methods – Neteller and Western Union – provides our custom- 0,0 ers with additional payment options that are both convenient and secure. We make a continu- ing eff ort to assure quality: a marked increase in user numbers was accompanied by strength- ening of our support team, both quantitatively and qualitatively, which will ensure reliable and Marketing expenses 40 fast processing of customer concerns as usual also in the future. This mix of measures has 2010 35 resulted in our registered user numbers growing in excess of 25% to more than 2.258 million. 2009 30 25 Successful growth also relies heavily on continuing our expansive marketing activities across 20 Europe. Marketing expenses were increased from EUR 31,044,000 in 2009 to EUR 36,664,000 EUR million 15 in 2010. We would particularly like to point out the European Handball Championships that took 10 place in Austria in January 2010 and sponsoring of the Spanish premier league member RCD 5 Mallorca, for which bet-at-home.com has been one of the main jersey sponsors since the sum- 0 mer of 2010. In the international football scene, the group was represented again in the Europa 4 League with large scale perimeter advertising. In summer 2010, that year’s sports highlight, the Imprint FIFA World Cup, took place in South Africa. For this event, we initiated a large-scale advertis- ing campaign with TV spots and billboards across Europe. This campaign was accompanied by a comprehensive bonus scheme, which was greeted with enthusiasm by our customers. Successful mastery of the challenge of a major event, such as the FIFA World Cup, by our Auditor’s Report Marketing team, contributed significantly to a marked increase in registered users, as already mentioned above. It is also very evident from a rise in all other key figures that the wide variety of marketing activities undertaken has been very successful as regards our growth strategy. Group Group Management Report As it is our opinion that the future development of a dynamic group such as bet-at-home.com can only be ensured by motivated and qualified staff , we have also invested heavily in this sec- tor. For example, we strengthened controlling in order to ensure the eff iciency of marketing measures taken and thus also ensure further sustainable growth. Moreover, Customer Rela- tions Management was split off as a separate department, which now focuses specifically on Statement of Changes in IFRS Equity Group measures for extending customer loyalty and reactivating inactive customers. By the end of 2010, the total number of staff employed by the Group had risen to 133 (end of 2009: 106). Of course, as customer numbers rise, bet-at-home.com has a growing responsibility towards them. We therefore take gambling protection in accordance with responsible gaming standards Consolidated Statement of Cash Flows very seriously. For this reason we have also come to a cooperative agreement with the Institut Glücksspiel und Abhängigkeit (Gambling and Dependency Institute). Other measures include constant monitoring of the gambling behaviour of our customers in order to prevent gambling addiction, an anti-fraud department, whose staff were expanded further in 2010, combined with continuous improvement of technical security and voluntary membership in ESSA and EGBA. Annual compliance audits by these associations ensure compliance with international stan- Notes to the Con- solidated Financial Statements dards for private eGaming providers and also reduce the risk of money laundering and bet- ting manipulation. We thus off er our customers the greatest possible security and unhampered gambling pleasure. Consolidated Statement of Income In conjunction with incorporation of the Betclic Everest SAS Group (formerly: Mangas Gaming SAS Group) we intensified the evaluation of cost cutting potentials during the 2010 financial year, as a result of which the first implementation measures have already shown positive ef- fects. Significant investments in our server infrastructure in 2009 and 2010 and commencement of Consolidated Statement of Financial Position operations in 2010 ensure the necessary technical capacity for future growth. Excellent financial performance of the Group, combined with positive future prospects for a significant increase in the share price of bet-at-home.com AG, already showed positive eff ects for our equity holders in 2010. More and more European countries appreciate the opportunities Report by the Supervisory Board associated with the liberalisation of the online betting and gambling markets. We believe we are very well equipped for changes expected in the legal environment. Therefore, buying bet-at- home.com AG shares remains a good investment, also in the near future. Furthermore, we have been able to welcome our equity holders to our revised bet-at-home.com AG website since au- Report by the Management Board tumn 2010, which makes extensive information and news available about the bet-at-home.com AG Group. 5 Report by the Management Board We are convinced that we are now in an even better position to satisfy the needs of our equity holders and potential new investors. 2010 was another highly successful year for bet-at-home.com AG. In our view, we will be able to achieve or even significantly exceed all our economic goals in this highly competitive on- line gaming market. We would like to conclude by thanking all those involved, most particu- larly all our staff and
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