Online gambling giant Bwin.party Digital Entertainment plc has released its financial results for the first six months of the year, highlighting strong trading.
The company's pro forma results show the financial performance of the group if the company's merger with Party Gaming had always been in place. Actual results are those that include Party Gaming's financial statistics for the entire period as well as the results of Bwin Interactive Entertainment AG with effect of the merger that took place on March 31st, 2011.
Pro Forma revenues for the period were:
Sports betting to €125.7 million down from €128.1 million during the same period in 2010
Casino and Games at €124.5 million up from €121.9 million during the same period in 2010
-Poker at €104.9 million down from €116.5 million during the same period in 2010
Bingo at €33 million down from €36 million during the same period in 2010
Net Revenue at €387.9 million down from €402.5 million during the same period in 2010
Total Revenue at €398 million down from €410.1 million during the same period in 2010
EBITDA at €81.9 million down from €104.1 million during the same period in 2010
Actual results for the first half of 2011 were:
Sports betting at €59.9 million up from €10.2 million during the same period in 2010
Casino and Games at €99.1 million up from €76.7 million during the same period in 2010
Poker at €79.8 million up from €64.1 million during the same period in 2010
Bingo at €27.8 million up from €25.8 million during the same period in 2010
Net Revenue at €266.6 million up from €176.8 million during the same period in 2010
Total Revenue at €273.1 million up from €181.2 million during the same period in 2010
EBITDA at €50.9 million up from €43.9 million during the same period in 2010
A statement by Joint-CEOS Jim Ryan and Norbert Teufelberger read:
“We have made excellent progress on integrating Bwin and PartyGaming since the merger was completed at the end of March 2011. The results for the first half reflect our transition to becoming a global leader in all four product verticals with strong market positions in all key regulated markets."
"The expansion of online gaming in newly regulating markets has delivered promising levels of revenue growth, albeit with additional costs in the form of gaming taxes and compliance costs. However, we are encouraged by a number of recent developments where governments are recognising the need to create a commercially sustainable regulated market without which consumers will simply seek out more attractive offers on the ‘black market’. We expect that this will result in further favourable long-term changes to existing and future regulatory frameworks."
“The absence of the FIFA World Cup, the closure of French casino and increased gaming taxes need to be taken into account when comparing our year-on-year performance. Excluding these factors, pro forma revenue increased by 1 pecent and Clean EBITDA increased by 8%.”
Commenting on current trading they said:
“Since 30 June 2011, the group’s revenue performance has been strong. The suspension of Full Tilt Poker’s gaming licence at the end of June removed a major competitor in poker and consequently we have seen an improvement in player numbers and average daily revenues."
"In addition, our launch of cash game poker and certain casino games in Italy has started well, even though this is the seasonally weak trading period. Whilst the new regulatory regime in Spain requires gaming duties to be paid with effect from 29 May 2011, this is being met by our strong current trading performance."
“The regulatory picture can be expected to continue to shift against a challenging macroeconomic and competitive backdrop, but our strong brands and market positions, healthy balance sheet and net cash resources mean that we remain confident about the group’s prospects for the rest of the year and beyond."
“Further to the announcement on 30 June 2011, the Board has declared an interim dividend totalling €15 million and has also initiated a programme to buy up to €75 million of Ordinary shares in the period ending 30 June 2012."