Bwin.party Revenue Suffers From Poker CompetitionAugust 31, 2011 9:15 am
Online gaming company Bwin.party has just released its latest financial figures revealing a 3% drop in revenue to €398 million (£352.2 million) for the first half of 2011 to June 30th.
Bwin and PartyGaming merged in March this year to form an Austro-British venture that is the world’s biggest online gambling firm, valued at more than $2.1 billion and offering such products as bwin, PartyPoker, PartyCasino and Foxy Bingo.
The latest revenue results released for H1 represent the company’s first financial figures produced since the well-publicised merger, with the blame for the lacklustre results being pinned on increased competition in the poker markets and the closure of its French casino.
Bwin.party’s poker revenue declined by 11% to €104.9 million (£92 million) from £116.5 million in the same period last year. On the positive side, however, the company says it has now noticed an increase in its player numbers and average daily revenue since Full Tilt had its poker gaming license suspended in June. Bwin said new poker player sign ups had risen 6% to 373,700 and that the launch of their cash game poker and casino games in Italy had also started well, with CEO Jim Ryan and Nortbert Teufelberger commenting:
“The results for the first half reflect our transition to becoming a global leader in all four product verticals with strong market positions in all key regulated markets. The expansion of online gaming in newly regulating markets has delivered promising levels of revenue growth, albeit with additional costs in the form of gaming taxes and compliance costs.”
The H1 results and statement by bwin.party was well received by the market with shares currently up 16% to 128 pence a share.