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bwin.party Report Weak SportsBetting Numbers
Thursday January 1,2015 : BWIN REPORT WEAK SPORTS BETTING MARGINS IN TRADING UPDATE
Company continues to explore consolidation options
In a pre-close trading update, bwin.party digital entertainment plc reported expected bet volumes and active player numbers but “exceptionally weak gross win margin in sports betting”, particularly during the month of December.
Weak gross win margins have impacted overall revenue performance in the fourth quarter, the company said, which are now expected to be in the range of Euro 608 million to Euro 612 million.
bwin’s Euro 30 million cost saving target remains on track and a continuing clean EBITDA margin is expected to be between 16 and 17 percent.
Clean EBITDA losses of approximately Euro 10 million from New Jersey and Euro 7 million from social gaming remain.
The company confirmed ongoing discussions with several unnamed parties regarding a range of potential business combinations that bwin says will create additional value for shareholders.
The potential sale of bwin’s social gaming business WIN continues with active discussions, the update said, a further announcement is expected shortly.
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