2014 Half-Year Results Show Revenue Decline - 1st
Digital Entertainment PartyCasino.com
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
were the words of bwin.party digital entertainment
CEO, Norbert Teufelberger, after his firm had released
their 2014 half-year results to the general public.
key performance indicators (KPIs) for the six months
ending 30 June 2014 were showing more red than green
with a series of bad news stories permeating through
revenues decrease 7.5%
biggest story is the news that total revenue is down
7.5% from a 2013 figure of €342.5m to €317.1m.
The causations cited are a "soft international
poker market," and "the loss of €11.9m
of revenue from their withdrawal from the Greek market."
a sad story, particularly because it was World Cup
year. The additional income from the World Cup came
in at €127.4m, but sports betting handle actually
declined 5% year-on-year to €1.35bn.
that decline, sports betting remained the only tranche
that grew revenue with a 7% increase to €127.4m
from €119m this time last year. New player sign-ups
were up 7% overall and up 40% in nationally regulated
and/or taxed markets, yield per active player day
was up 8%, and 35% of gross gaming revenue came through
revenue falls 37%
other tributaries performed like dogs with casino
& games falling 8% from €112.2m to €103.3m,
poker dropping 37% from €63.9m to €44.1m,
and Bingo dropping 3% from €27.6m to €26.7m.
again, the withdrawal from the Greek market was cited
as the answer to most of the problems in all of these
round off this dismal news, earnings were down 23%
and they also made an operating loss of €100.4m
(of which €95m came via non-cash impairment charge
against its under performing poker assets).
Jersey investment won't break even until 2016
does have to be noted that there are start-up costs
associated with the gaming and poker sites operating
in New Jersey, which amounted to a €7.3m loss.
Bwin.party are forecasting another €6m loss by
the end of the year and CFO Martin Weigold believes
that the New Jersey business wont break even
until sometime in 2016.
shares down by a third this year, and its market value
seeing £660m vanish into thin air, whats
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, Teufelberger stated.
to Reuterss Keith Weir, Teufelberger and his
team plan to focus on developing the Bwin brand in
Europe whilst doing likewise with PartyPoker and World
Poker Tour (WPT) stateside.
are also plans afoot to look at the potential of an
initial public offering for their payment processing
business, Kalixa, and a further €15m will be
clawed back through cost cutting exercises (thats
in addition to the €30m it saved this year).