B90 Holdings (LON: B90), which provides online marketing services to the gaming sector, says Oddsen.nu, an affiliate that is part of the group, has secured fixed listing fee marketing agreements that will generate income of €200,000 during 2024. There could be additional income on top of this based on marketing performance.
Oddsen.nu has broadened its reach to outside of its original Nordic base and this enabled the signing of these agreements. The focus is matching website visitors with the best online casino bonuses, as well as running a betting forum. The number of languages is being increased.
B90 Holdings has refocused on business-to-business gaming operations and exited business to consumer operations. This will enable a reduction in costs and could move the company into profit in 2024.
In 2023, revenues were €3m and the pre-tax loss €3.4m. Because this was a year of change and the acquisition of Emwys, an acquirer of customers via the Google AdWords platform, was only bought in July. By the end of the year the company had been reorganised so this year will reflect the true ongoing operations.
There was a cash outflow from operations of €4m last year. Net cash was €800,000 at the end of 2023 and the cash outflow should end in the second half.
Zeus forecasts a 2024 pre-tax profit of €600,000 on revenues of €5m. The latest announcement will help to underpin those expectations. At 3.15p, the shares are trading on 27 times prospective 2024 earnings and that could halve in 2025.
There is an experienced management team and shareholder/advisers such as Sportingbet.com founder Mark Blandford. In the medium-term, B90 Holdings should become a consolidator in the sector.
