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Bwin Financials Suffer Again

Internet betting firm Bwin has announced their first half 2014 financial results, noting lower revenues and a net loss for the period.

Key financial indicators for the first half of 2014 were:

  • Revenues down again at Euro 317.1 million (H1 2013: Euro 342.5 million)

  • Euro 11.9 million lost following the closure of the Greek market and Bwin's 'volume to value' strategy.

  • Nationally regulated markets represented 56 percent of total revenue (H1 2013: 52 percent)

  • Good news from mobile, where GGR across all verticals soared 125 percent to Euro 67.4 million ( H1 2013: Euro 342.5 million)

  • Remedial measures underway with planned cost reductions of Euro 30 million this year remain on-track with savings of Euro 13.8 million achieved in H1-2014.

  • Clean EBITDA at Euro 46.4 million (H1 2013: Euro 60.7 million) down due to Euro 7.3 million of operating losses in New Jersey, reduced domain sales and the loss of Greek revenues.

  • Non-cash impairment charge of Euro 94.7 million against poker-related and other intangible assets.

  • Euro 94 million loss after tax (H1 2013: loss of Euro 11.6 million)

  • Operating losses increased significantly from a negative result of Euro 4.9 million last year to a loss of Euro 100.4 million in the first half of 2014.

  • Clean EPS of 3 Euro cents per share (H1 2013: 4.3 Euro cents)

  • Current trading in the 8 weeks to 25 August 2014 has resulted in average daily net revenue declining 4 percent compared with the same period in 2013.

  • Sports betting was a positive performer, with revenues up 7 percent at Euro 127.4 million (H1 2013: Euro 119 million.

  • Casino and Games dipped sharply down at Euro 103.3 million (H1 2013: Euro 112.2 million.)

  • Poker was even worse, diving 31 percent to Euro 44.1 million (H1 2013: Euro 63.9 million)

  • Bingo down at Euro 26.7 million (H1 2013: Euro 27.6 million)

  • Other down at Euro 15.6 million (H1 2013: Euro 19.8 million)

  • New player acquisitions were down at 485,800 (H1 2013: 507,800)

  • Yield per average player was up 4 percent at Euro 10.

Commenting on his firm's performance Bwin CEO Norbert Teufelberger said, “We are on-track with our current cost saving measures, however it is clear that a more fundamental approach is needed to turnaround our commercial and operational performance. This requires a major change: we are simplifying our structure to accelerate the execution of our plans to drive revenue growth, increase our focus on customers in nationally regulated and/or taxed markets, and further reduce infrastructure costs."

"This new approach will also allow us to consider alternative financing and corporate structures in order to create additional value."

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