Internet betting firm Bwin.Party Digital Entertainment has announced its first quarter 2014 financial results, showcasing small increases in revenue, which is disappointing for the gambling giant.
Key financial indicators for the period ending March 31st, 2014 were:
Average daily net revenue up 4 percent on the preceding quarter but down 9 percent year-on-year as the company continues to pursue its 'volume to value' business strategy, and blames ISP blocking in Greece, migration losses and a competitive poker market in Europe for its woes.
Total revenue up just 1 percent on the previous quarter and down 8 percent year-on-year to Euro 165.7 million.
Nationally regulated and/or taxed markets now represent 56 percent of total revenue (2013: 51 percent).
Mobile/touch betting increasingly important, representing 17 percent of total gross gaming revenue (2013: 8 percent).
Company continues to cut costs, with additional cost savings of Euro 20 million per annum on-track to be delivered in 2014, with further savings in 2015 following platform integrations in France and Italy.
Active in nascent New Jersey online gambling market and is pursuing opportunities in other states.
Commenting on his company's performance, Bwin CEO Norbert Teufelberger said, “The business has continued to deliver sequential growth since Q3 2013 that we predicted would be the low point in terms of revenue performance. Whilst we are investing in growing our share in nationally regulated markets, the Euro 20 million of additional cost savings should help to drive higher clean EBITDA margins in 2014."
“We remain optimistic about new market opportunities in the United States with online poker bills currently being reviewed in California and New York. On the back of our early success in New Jersey, together with our partners, we are determined to secure leading positions in all eligible states that represent a significant business opportunity."