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Good Third Quarter Earnings For Bwin.Party

Sell-off of Ongame should be completed by year-end digital's Q3 2011 results have been released, showing strong growth in online casino, new games for Italy and improved performance from poker operations, thanks to less competition due to Full Tilt Poker's troubles.
The sale of the Ongame network - now superfluous following the merger - is expected to complete by year end to an as yet unknown buyer, management reports.
The company's interim management statement includes the following highlights for the period July q to November 7, 2011:
• Solid third quarter performance driven by strong growth in casino, new games in Italy and improved competitive position in dotcom poker
• Total pro forma revenue up 3 percent to Euro 201.1 million (2010: Euro 194.7 million); average daily revenue up 8 percent on the previous quarter
• Current trading remains robust, up 9 percent versus Q3 and in line with management’s expectations
• Ongame sale expected to complete by the end of the year
• Merger synergies and savings remain on course - Euro 40 million in 2012 and Euro 65 million in 2013
• Preparation for entry into Denmark and Spain on-track
• US strategy in place with MGM Resorts and Boyd Gaming
Commenting on today’s announcements, joint chief executives Jim Ryan and Norbert Teufelberger, said:
“Trading remained solid in the third quarter thanks to the launch of new games in Italy on 18 July 2011 as well as the interim closure of Full Tilt Poker, both of which have been positive for poker and casino revenues in the period.  During the first few weeks of the fourth quarter, average daily revenues have remained robust and in line with our expectations.
“The regulatory landscape continues to evolve and we are on-track to launch new regional labels in both Spain and Denmark on 1 January 2012.
"In Germany, we welcome the revised proposal from the Minister Presidents that seeks to open the online sports betting market.  Although the proposal falls short of the requirements prescribed by the European Court of Justice, we remain optimistic that changes can and will be made so that the regime becomes fully compliant and will foster a vibrant regulated market.
"In the meantime we are preparing to secure a licence in Schleswig-Holstein, the most northern state in Germany that has already enacted legislation that has been cleared by the European Commission.
“In the United States, momentum continues to build at both a federal and state level and as a result we recently announced our US strategy with MGM and Boyd, two of the pillars of the US land-based gaming industry and are preparing to enter into a preliminary suitability review with the Nevada Gaming Control Board.
“While the effects of regulatory changes are difficult to predict, we remain on-track to deliver our merger synergies as previously communicated, our planned sale of Ongame is on-track, we have a healthy balance sheet and remain confident about the Group’s full year prospects.”
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