Posted 3./23/11 : Development of business in Q4 2010 defined by forthcoming merger
The publicly listed Austrian online gambling group Bwin Interactive has published its full year 2010 and Q4 2010 results, noting that its merger with Party Gaming plc has been influential in Q4.
The internet gambling giant boasted that it is now established as one of the leading internet poker providers in France and a top three player in Italy, with further expansion scheduled in 2011.
Preparations for forthcoming regulation in a number of European markets resulted in one-off expenditure for consulting and system development
There has been continuing increases in turnover and customer volume in the sports betting vertical, although gross gaming revenues were slightly down year-on-year due to lower sports betting margin and intense competition in poker.
EBITDA was impacted by IT-related expenditure in preparation for the merger with Party Gaming and forthcoming regulation in Europe. There has also been some reorganisation by product verticals in preparation for the Party Gaming merger, which is scheduled for implementation at the end of March 2011.
Management reported that current development of the business is ahead of expectations, and that operational costs have been cut.
Q4 highlights included:
* Average daily gross gaming revenues (1 January – 17 March 2011) up 10.5 percent compared to Q4 2010 and up 6.2 percent compared to Q1 2010 to Euro 1.57 million
* Average daily net gaming revenues (1 January – 28 February 2011) up 5.2 percent compared to Q4 2010 to Euro 1.18 million
* Expenses for services received (such as external software writing and maintenance, consulting) for January and February 2011 down by approximately 15 percent compared to the monthly average of Q4 2010
* Gross gaming revenues of Euro 130.8 million (Q4 2009: Euro 132.9 million)
* Record sports betting turnover of Euro 917.0 million (Q4 2009: EUR 786.4 million)
* Sports betting margin of 7.1 percent (Q4 2009: 8.5 percent)
* Net gaming revenues of Euro 103.1 million (Q4 2009: Euro 109.8 million)
* Active customers: 1,213,000 active and 305,000 new active real-money customers (minus 2.5 percent and plus 2.4 percent respectively)
* EBITDA (adjusted) of Euro 20.9 million (Q4 2009: Euro 34.3 million)
* Result after tax of Euro 5.2 million (Q4 2009: Euro 19.3 million)
Financial year 2010 (pro forma consolidated, including bwin e.K.)
* Gross gaming revenues up 15.2 percent to Euro 514.6 million (2009: Euro 446.6 million)
* Net gaming revenues up 9.4 percent to Euro 408.0 million (2009: Euro 373.0 million)
* Active customers: 2,606,000 active and 1,283,000 new active real-money customers (plus 9.0 percent and plus 16.4 percent respectively)
* Adjusted EBITDA of Euro 72.0 million (2009: Euro 102.2 million)
* Result after tax of Euro 13.9 million (2009: Euro 46.3 million)