Another mediocre quarter from bwin.party

The Bwin.Party Digital Entertainment gambling group released an interim management statement for the period July to mid-October 2014 Thursday, presenting a continuing picture of mediocre performance with the occasional bright spot.

The more positive aspects of the report showed online and mobile sportsbetting revenues up 11 percent in the third quarter, and revenue from nationally regulated and/or taxed markets up 10 percent year-on-year, representing 56 percent of total revenue (Q3-2013: 53 percent), although revenue from other markets was down 6 percent year-on-year.

KPIs in the report include:

* Total revenue in Q3 2014 up 2 percent to Euro 148.7 million (Q3-2013: Euro 145.7 million);

* Sports betting revenue of $58.8 million (Q3-2013: Euro 52.9 million); higher gross win margin of 10.6 percent (Q3-2013: 9.1 percent);

* Online casino net revenue down 3 percent with higher cross-sell from sports offset by a soft poker performance and the withdrawal from the Greek market; amount wagered increased by 8 percent to Euro 1,784.2 million (Q3-2013: Euro 1,650.3 million);

* Online poker net revenue plunged 25 percent to Euro 17.5 million (Q3-2013: Euro 23.3 million);

* Online bingo net revenue down 1 percent to Euro 12.1 million (Q3-2013: Euro 12.2 million) with solid UK performance offset by weakness in Italy;

* Other revenue up an impressive 64 percent to Euro 11.8 million (Q-2013: Euro 7.2 million) with strong performances by Kalixa, network services, WPT and InterTrader;

* Mobile and touch represented 23 percent of gross gaming revenue, well up on Q3-2013 (13percent);

* 26 new online casino games added in the third quarter, six of which are available on mobile;

* Successful integration of the group’s technology platforms in France;

* Launch of Bwin’s ‘Combi+’ sports betting product;

* As at 30 September 2014, the group had cash (and cash equivalents) plus short-term investments of Euro 187 million; processor receivables of Euro 32 million, less bank borrowings of Euro 69.5 million and client liabilities (including progressive prize pools) of Euro 114.2 million, resulting in net company cash of Euro 35.3 million (30 June 2014: Euro 50.9 million).

Norbert Teufelberger, CEO, said:

“Our overall revenue performance in the third quarter was in-line with our expectations whilst clean EBITDA margins have benefited from our previously announced cost savings.  We continue to make good progress on expanding our mobile footprint and our presence in nationally regulated and/or taxed markets and we remain confident about the full year outlook.

“Our transition to a label-led organisation structure is well-advanced and we remain on course to achieve our target of Euro 15 million of incremental savings next year.

“As we enter the seasonally strong fourth quarter we are continuing to launch a number of new products including the latest version of our mobile sports product that will also include embedded casino games.”

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