Bwin Issues Trading Update

Internet betting giant bwin.party Digital Entertainment has released a trading update, noting some of the company's goals for the rest of the years.

Some of the goals that bwin posted in the trading updates were:

• Continue cost-cutting in order to achieve €70 million in savings by thethe end of 2013

• Pursuing New Jersey online gambling licensing with a November launch in mind

• The continuation of its focus shift from volume to value

• Reports that revenue during Q2-2013 has followed a similar path to that seen in Q1 reflecting the introduction of the turnover tax on sports betting in Germany in July 2012 and a lower than expected gross win margin in sports

• Next generation online poker product is being tested with full launch scheduled for August; new payments services also to launch in August

• New social sports betting application currently in test on Facebook

Bwin CEO Norbert Teufelberger was quoted in the trading update as saying: “Trading in the year-to-date reflects our shift from volume to value, the introduction of a turnover tax in Germany in July 2012, as well as some issues we faced following the migration of bwin.com customers in December 2012, all against a challenging competitive and market backdrop."

"However, the process to optimise the shape and size of our business, with a greater focus on regulated and to-be-regulated markets, is on-track and we remain focused on returning our business to growth."

“While the revenue performance was down on last year, we remain on course to deliver the targeted €70m of cost savings in 2013 with more to follow in 2014. During the second half we expect to roll out our new real money and social gaming products as well as, regulations permitting, the launch of our poker and casino games in New Jersey.”

Speaking about the firm's other products Teufelberger said, "Ahead of the launch of our new poker product, the trends seen in Q1 in casino and poker continued during the second quarter."

"Whilst we retain a leadership position in our two largest markets, competitive pressures in both the UK and Italy have continued to hold back our bingo business. Our cost reduction initiatives remain on-track and we are set to deliver €70 million of savings in 2013, with more to come in 2014."

The CEO also went on to state that the firm's payment business is set to launch a new mobile product. Speaking about that product Teufelberger said, "Additionally, Kalixa Pro, our service for small and medium-sized businesses, will launch its mobile point-of-sale product in September, enabling the making and acceptance of card payments anywhere and at any time."

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