bwin.party earnings up 2% in H1-2015

The small increase had been helped by cost savings, which lifted the core earnings for H1-2015 to Euro 45.4 million.

Along with other online gambling groups, the company felt the pain of increased UK & European taxation.

bwin.party chief executive Norbert Teufelberger, reported on what was achieved and what could have been:

“Clean EBITDA increased by 2 percent year-on-year despite the introduction of VAT in a number of EU Member States & the new UK point of consumption tax. However, our progress on non-core asset disposals & other cost saving initiatives is running ahead of plan - excluding the impact of EU VAT & UK point of consumption tax, clean EBITDA would have increased by 24 percent;

“Based upon our progress in the year-to-date & with the further roll-out of our latest mobile products, the introduction of new CRM tools & planned entry into two new nationally regulated markets later this year, we remain confident about the full year outlook.”

Key points of the bwin H1-2015 report included:

* Total revenue down at Euro 296.5 million (2014: Euro 317.1m) reflecting the absence of the FIFA World Cup, lower margins in sports, market declines in poker & the impact of EU VAT in certain markets; nationally regulated and/or taxed markets represented 60 percent of total revenue (2014: 56 percent);

* Gross gaming revenue through mobile/touch up by 50 percent & now represents 30 percent of overall GGR (2014: 19 percent) with growth across all verticals;

* Clean EBITDA up by 2 percent to Euro 47.3 million (2014: Euro 46.4m) despite being impacted by lower revenue & higher taxes. Excluding the impact of EU VAT & the POCT, Clean EBITDA would have increased by 24 percent to Euro 57.7 million (2014: 46.4m);

* Profit after tax of Euro 2.9 million (2014 - Euro 94 million);

* Sports betting revenue Euro 111.1 million (H1-2014: Euro 127.4 million);

* Casino & gaming revenue Euro 98.4 million (H1-2014: Euro 103.3 million);

* Poker Euro 33.9 million (H1-2014: Euro 44.1 million);

* Bingo Euro 26.9 million (H1-2014: Euro 26.7 million);

* Other Euro 26.2 million (H1-2014: Euro 15.6 million);

* On-track to meet or exceed Euro 15 million incremental cost saving target this year;

* Total consideration received from the sale of non-core assets of Euro 37.1 million;

* Net cash at 30 June 2015 of Euro 58.1 million (31 December 2014: Euro 34.6m);

* Basic EPS of 4 Euro cents (2014: loss of 11.4 Euro cents);

* Current trading: In the 8 weeks to 25 August 2015 average daily net revenue was down 9 percent versus the same period in 2014;

* Recommended half year dividend up 2 percent to 1.92 pence per share (2014: 1.89 pence)