BwinParty reports “mixed” bag
BwinParty has announced a “mixed” revenue performance in the three months to 30 June.
In a trading update released on Tuesday, the Gibraltar-based company reported a “solid” showing from sportsbook, powered by the World Cup, but a “soft” performance in poker and casino.
Norbert Teufelberger, CEO of BwinParty, said: “As expected, the start-up losses in New Jersey, ISP blocking in Greece and the absence of domain sales in the first half have impacted both the revenue and clean EBITDA performance versus the prior year. However, we are taking steps to improve operating performance, simplify decision-making, reduce complexity and costs and, as a result, remain confident about the full year outlook.”
The board has pledged to cut an additional €10m in costs to help the bottom line, in addition to the €20m worth of cuts already announced.
The firm blamed the poker losses in New Jersey on a sluggish overall market.
“In terms of player numbers, our dotcom network has performed relatively well, although in the US the current size of the market in New Jersey remains below initial industry expectations and this has held back the performance of all operators,” said the report.
The firm also reported some good news for investors, as mobile gaming “continues to grow strongly” and now makes up 21% of BwinParty’s gross gaming revenue.
Bingo proved another bright spot, with the company claiming it maintained market leading positions in the UK and Italy in the face of aggressive marketing campaigns from competitors.
Despite this, BwinParty shares fell 30% and are now trading at 86p, with Investors Chronicle advising shareholders to sell.
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