Internet wagering giant bwin.party digital entertainment plc has released its financial results for the first quarter of 2012 this week, highlighting growing revenues and several operational highlights.
Key financial and performance indicators for the first quarter were:
• Total revenue up 1% to €215.9 million (Q1-2011: €214 million) with strong growth in casino and other games partially offset by a softer gross win margin in sports betting
• Amounts wagered in sports betting up 11% to €1,083.4 million (Q1-2011: €973.2 million); net gaming revenue down 1% to €70.6 million.
• Casino and other games revenue up 10% at €71 million (Q1-2011: €64.8 million); average daily casino revenue up 3% versus the previous quarter with an 8% increase in stakes mitigated by a small reduction in gross win margin
• Poker revenue down 3% to €52.2 million (Q1-2011: E uro 54 million); average daily poker revenue up 1% versus the previous quarter
• Bingo revenue down 15% year-on-year at €15.6 million (Q1-2011: €18.3 million) following a loss of market share and cannibalisation from the newly launched casino in Italy during 2011; average daily bingo revenue down 2% versus the previous quarter.
• Agreement signed with United Auburn tribe to launch online poker service in California once state regulations allow
• Sports betting licence from Schleswig-Holstein expected shortly, and applications in for Spain
Commenting on his company's results, Joint CEOs Jim Ryan and Norbert Teufelberger said:
“Casino has continued to perform well as has our sports business that saw strong growth in both player activity and amounts wagered, albeit at a lower margin compared with last year, which was particularly strong."
"The poker market remains challenging across Europe and while the number of unique players in our bingo business has started to grow again during the first quarter, this was not enough to reverse the impact of a drop in market share that took place in 2011."
“We remain on-track to realise the €65 million of merger synergies as planned and these will help to mitigate the impact of additional gaming taxes as well as the current macroeconomic challenges faced by a number of the European economies."
“With the imminent launch of our download casino product on the Bwin platform, the €2012 football tournament starting next month and the integration of our poker liquidity in the second half, we remain confident about the Group’s full year prospects."