Bwin struggles continued in 2014

While there are bright spots among the results, the overall performance is unlikely to enhance the value of the company, which is reportedly the subject of an acquisition deal with presently unknown parties.

Audited results for the year ending on December 31 ,2014 show that:

* Sports betting revenues were flat at €237.1 million – only a one percent improvement;

* Casino and games revenues declined 6 percent to €203.7 million;

* Poker revenues plunged 29 percent to €81.7 million;

* Bingo revenues were down 2 percent at €51.9 million;

* Other revenues were up 13 percent at €37.5 million;

* Average daily player numbers declined 14 percent to €1,479,000;

* Yield per player was up 6 percent at €10.4;

* New player signups were down 11 percent at €8,151,000;

* Total revenue of €611.9 million (2013:  €652.4 million) reflected the full year impact of ISP blocking in Greece and further declines in poker, partially mitigated by the FIFA World Cup; nationally regulated and/or taxed markets representing 56 percent of total revenue (2013: 53 percent);

* Gross gaming revenue through mobile grew by 99 percent to €153.2 million (2013: €76.9 million) with solid growth across all verticals;

* Planned cost reductions of €30 million within clean EBITDA were exceeded and a further €15 million in additional savings remain on-track for 2015;

* The company sustained a non-cash impairment charge of €104.4 million (2013: €9.4 million) against poker-related and other intangible assets and non-core investments resulting in a €94.3 million loss after tax (2013: profit of €41.1 million);

* Management recommended a FY dividend of 1.89 pence per share – up 5 percent;

Chief executive officer Norbert Teufelberger said Wednesday that current trading indicated betting volumes are ahead but softer than expected.  Gross win margins resulted in a decline in average daily revenues, but trading overall has been broadly in-line with expectations.

“We have made solid progress this year in growing our share of revenues from nationally regulated and/or taxed markets, increasing our mobile footprint and reducing our cost base,” Teufelberger commented in his report.

“However, the full year impact of ISP blocking in Greece coupled with the structural decline of regulated poker markets in Continental Europe affected our overall financial performance for the year.

Having announced our shift to a label-led approach in August, we are now accelerating our transformation. This program is already improving our operational effectiveness and customer focus, both of which are key drivers of our long-term financial performance, with particular opportunities flowing from the commercialization of our technology through our new Studios business unit.”