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Bwin H1 Reports Releases

Marketing expenditure on the World Cup and French start-up dent Q2 numbers
 
In accordance with stock market rules following the proposed merger of Party Gaming and Bwin, Party Gaming issued a press release to the London Stock Exchange Thursday providing detail on Bwin's performance in the first half of 2010.
 
H1 highlights included:
 
* Gross Gaming reviews up 22.4 percent at Euro 260.4 million
* NGR rose 16.6 percent to Euro 209.7 million
* EBITDA declined 19.2 percent to Euro 41.3 million
* After tax profit declined 22.7 percent to Euro 14.7 million
 
The company reported record turnover for sports betting due to a successful football World Cup, and a promising start to sports betting and poker in France as at the end of Q2/2010, but noted that results had been temporarily affected by marketing expenses and intensive preparations and start-up costs in France.
 
Online poker and casino operations were adversely impacted by seasonal slow trends and the distraction of the World Cup.
 
Detailing Q2 2010 results, the company reported:
 
* Gross gaming revenues of Euro 127.2 million, or Euro 113.8 million excl. Gioco Digitale (Q2 2009: Euro 95.1 million)
 
* Sports betting margin improved at 7.2 percent (Q2 2009: 5.9 percent)
 
* Net gaming revenues of Euro 100.4 million, or Euro 93.1 million excl. Gioco Digitale (Q2 2009: Euro 77.8 million)
 
* Record number of active customers: 1,381,000 active and 360,000 new active real-money customers (up 30.7 percent and plus 43.5 percent respectively)
 
* EBITDA of Euro 11.0 million (Q2 2009: Euro 15.1 million)
 
* Result after tax of Euro 2.8 million (Q2 2009: Euro 100 000)
 
* Marketing costs up 30 percent in Q2.
 
* 19 percent rise in Q2 for online poker operations.
 
Regarding the merger with Party Gaming, Bwin management reported that the collaboration was on schedule for a conclusion in Q1 2011, forming a business worth Euro 3.3 million.
 
Bwin enjoyed record turnover for sports betting due largely to the World Cup, which pushed gross gaming revenues up by just under 35 percent, from Euro 95.1 million to Euro127.2 million.



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