SBC News bwin.party posts 2014 operating loss of €94 million

bwin.party posts 2014 operating loss of €94 million

bwinpartybwin.party reported declines in all full year 2014 top line metrics as the operator posted an operating loss of – €94 million (2013: €41 million). The operator disclosed that it had been impacted by a non-cash impairment charge on its poker business and other non-core assets of €104 million, which resulted in the 2014 operating loss.

The operator recorded a decline in group revenues of €611.9 million (FY 2013: €652.4 million), stating that its performance had been impacted by further declines to its poker product and ISP blocking of its services in Greece.

The decline in group revenues would impact company net performance which reduced to €563 million (FY 2013 – €609 million). 2014 EBITDA performance dropped to €101 million (FY 2013: €108 million).

2014 reported a tough year for bwin.party products, with no business division recording growth. Sports betting revenues remained flat at €237 million (FY 2013 €236 million). The operator’s casino, poker and bingo divisions all recorded 2014 declines (seee revenue chart below).

bwin.party product channels had been further impacted by declines in active player numbers, new player acquisitions and a further decrease in player % net revenues

bwin.party governance announced that it was able to perform critical restructures to its core business during 2014, as the operator implemented cost reductions of €30 million. Governance further outlined that it planned to save an additional €15 million in costs for 2015

Commenting on 2014 performance Norbert Teufelberger, Chief Executive Officer, said:

“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.  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 programme 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 commercialisation of our technology through our new Studios business unit.”

bwin.party 2014 performance overview

  • Product Breakdown

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  • Player KPI’s

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