Internet betting giant Bwin.Party Digital Entertainment has released its 2013 financial results, noting lower revenues but positive highlights that look to provide future results.
Key company highlights for the year were:
Total revenue down at Euro 652.4 million (2012: Euro 801.6 million) reflecting shift from ‘volume to value’, ISP blocking in Greece, migration losses and the full year impact of gaming taxes in Germany; nationally regulated and/or taxed markets represented 53 percent of total revenue (2012: 43 percent);
Gross gaming revenue through mobile/touch grew by 77 percent to Euro 76.9 million (2012: Euro 43.4 million);
Successful US launch – number one online poker network in New Jersey in partnership with Borgata;
Costs reduced by Euro 97 million in 2013 versus 2012 - better than targeted savings of Euro 70 million;
Clean EBITDA down at Euro 108 million (2012: Euro 164.9 million) due to lower revenue, increased gaming taxes in Germany and start-up costs in New Jersey;
Continuing operating profit of Euro 51.9 million (2012: loss of Euro 16.5 million) driven by release of acquisition fair value provisions, absence of retroactive taxes and lower amortisation costs;
Continuing Clean EPS down at 7.3 Euro cents per share (2012: 14.7 Euro cents);
Recommended final dividend up 5 percent to 1.80 pence per share (2012: 1.72 pence) making a total FY13 dividend of 3.60 pence per share (2012: 3.44 pence)
Reporting on current trading, management said that average daily net revenue is up 6 percent versus Q4:2013 with nationally regulated and/or taxed markets representing 56 percent of net revenue.
Commenting on his company's performance Bwin CEO Norbert Teufelberger said, “2013 was a challenging year for our business, but it also marked a turning point as we increased our focus on regulated and to-be-regulated markets, began to roll-out new and refreshed versions of our mobile and desktop products, and commenced the transformation of our technology infrastructure through the adoption of the Agile development methodology."
"Having streamlined the shape and size of our business we now have the foundations to return our business to sustainable growth.”