Party/Bwin Trading Update
Thursday December 19,2013 : BWIN TRADING UPDATE IN LINE WITH EXPECTATIONS
And non-executive chairman to step down
In a pre-close trading update, bwin party digital entertainment plc advised that overall trading in the 11 weeks since September 30, 2013 has been in-line with management expectations.
The emerging New Jersey market is proving to be positive for bwin in relation to casino performance and overall bingo net revenues have improved compared to the previous quarter, undergoing a steady recovery in both the UK and Italy.
Including US marketing and launch-related costs of between Euro 7 million and Euro 10 million in the current year (of which Euro 1.5 million was expensed during the first half of 2013), it is expected that in the year to 31 December 2013, continuing clean EBITDA margins for the Group will be between 16 percent and 17 percent, assuming a normalised gross win margin in sports betting between now and the end of the year.
Other key performance points include:
- 52 percent of average net daily revenue was derived from nationally and/or taxed markets
- Gross win margins in sports betting have remained strong, with betting volumes slightly lower reflecting a reduced sporting calendar during the international series of football matches in November.
- Mobile remains an important channel representing approximately 25 percent of sports average daily net revenue in the period. A new version of the company's sports mobile product went live in Spain this week and will be rolled out to our other markets during the first half of 2014.
- Poker revenues have grown since the introduction of the bwin's new poker client which is currently available to approximately 65 percent of its customers, as well as from the launch into New Jersey where bwin's network is reportedly market leader based on the number of cash game players in data from PokerScout.
Simon Duffy, Non-Executive Chairman of the group said: “The Group has faced numerous challenges over the past three years, but most of them are now behind us and I am confident that, under the leadership of Norbert Teufelberger, bwin.party is well-placed to return to growth by capitalising on its strong market position, leading brands and proprietary technology.”
The Group, via one of its UK subsidiaries, has secured a GBP 50 million multi-currency revolving credit facility provided by Royal Bank of Scotland. The facility will be used for general corporate purposes and has a term of three years with full repayment at maturity.
In related news, Duffy announced he will not stand for re-election at the Company's next AGM to be held in May 2014. A successor will be sought in the lead up to the AGM.
