Mixed results for bwin.party as investment discussions continue

Mixed results for bwin.party as investment discussions continue

Wednesday, March 11, 2015 Totally Gaming

Norbert Teufelberger, the CEO of bwin.party, has insisted the online gambling operator is making “solid progress” despite posting declines in several key metrics in its 2014 financial results released today (Wednesday).

The company posted full-year revenue of €611.9m ($652m) in 2014, down six per cent on €652.4m in 2013.

Clean earnings before interest, tax, depreciation and amortisation also dropped from €108m to €101.2m, while operating profit slumped €51.9m in 2013 to a loss of €97.9m last year.

However, by 10.40am GMT on the London Stock Exchange, bwin.party’s share price had improved by two per cent to more than 80p, with bwin.party’s non-executive chairman, Philip Yea confirming the company is in “further discussions” with potential investors.

“We’re testing them against each other and against business as usual,” he told the Financial Times newspaper. “These processes take whatever time they take.”

In November, the operator confirmed it was in preliminary talks with “a number of interested parties”. The likes of Amaya Gaming, William Hill and GVC Holdings have been linked to possible bids for the company by the media.

In December, the company said that it was close to selling its social gaming business, Win, but there has been no further announcement since then.

In terms of individual divisions, the operator’s sports betting business remains its main source of income after it was able to generate €231.7m in 2014. However, the bwin.party online casino and games, poker and bingo divisions all suffered declines in the past year.

“We have made solid progress this year in growing our share of revenues from nationally regulated and/or taxed markets, increasing our mobile footprint and reducing our cost base,” Teufelberger said.

“However, the full-year impact of ISP blocking in Greece coupled with the structural decline of regulated poker markets in Continental Europe affected our overall financial performance for the year.

“Having announced our shift to a label-led approach in August, we are now accelerating our transformation.

“This programme is already improving our operational effectiveness and customer focus, both of which are key drivers of our long-term financial performance, with particular opportunities flowing from the commercialisation of our technology through our new Studios business unit.”

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