Maiden quarter for merged Bwin.party Digital

The recently merged Bwin.party Digital group issued an interim management report for the period January 1 to May 5 2011 as the week ended, laying out a relatively quiet set of key performance indicators.
The statement indicates that this is the first time that Bwin.party has produced combined KPIs for Q1 2011, Q4 2010 and Q1 2010, which are provided for illustrative purposes only, given that the merger did not become effective until 31 March 2011.
First quarter highlights included:
* Total net revenue up 2 percent to Euro 217.8 million (2010: Euro 213.9 million);
* Average daily revenue up 4 percent versus the previous quarter with growth in sports betting, casino and other games offset by weakness in poker
* Sports betting revenue up 11 percent to Euro 71.6 million (2010: Euro 64.6 million);
* Average daily sports betting revenue up 12 percent versus the previous quarter due to strong gross win margin
* Casino and other games revenue up 8 percent at Euro 64.8 million (2010: Euro 60.2 million);
* Average daily casino revenue up 3 percent versus the previous quarter due to increased player activity
* Poker revenue down 14 percent to Euro 54 million (2010: Euro 62.8 million);
* Average daily poker revenue down 4 percent versus the previous quarter due to competitive pressures
* Bingo revenue flat at Euro 18.3 million (2010: Euro 18.3 million);
* Average daily bingo revenue up 3 percent versus the previous quarter driven by both increased player numbers and yield
Current trading has seen a pick-up in poker player sign-ups following the DoJ’s action against certain US-facing sites but it is too early to fully assess likely impact, Management reported.
Co-chief executive officers Jim Ryan and Norbert Teufelberger commented: “We are pleased to announce our first results following the merger, with our announcement today showing what we would have achieved had the merger between PartyGaming and Bwin occurred on 1 January 2010.
“Overall pro forma revenue in Q1 was 2 percent ahead versus the prior year despite the closure of our casino business in France.
“In respect of current trading, average daily gross revenue is down 7 percent versus the average for the first quarter, reflecting the normal seasonal pattern seen in previous years.
“Following steps taken by the US government to enforce its laws, we have seen an uplift in new player sign-ups on our poker sites despite the impact of seasonality.  In the period 15 April to 30 April 2011, we have experienced a 33 percent increase in average daily new player sign-ups for poker when compared with the previous two-week period.  While this represents only a short trading period, it is nonetheless encouraging.
“We are continuing to lobby for changes to the proposals made by the Minister Presidents in Germany on 6 April that proposed an unviable form of regulation which we and others believe to be inconsistent with EU law, as well as monitor developments in Greece, Spain and the Netherlands.
“Outside Europe, the recent action taken by the regulatory authorities in the US may signal an appetite to regulate and there are bills currently being contemplated at both a State (California and Florida) as well as at Federal level.  We are hopeful that the momentum we have seen in recent weeks may result in further positive developments both in Europe and the US.  While it is difficult to predict the short-term impact of any of these regulatory changes, we remain on-track to deliver our merger synergies as previously communicated and remain confident about the Group’s prospects.”

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