Bwin.party Digital Entertainment, one of the betting giants who was created in 2011 after a merger between Bwin Interactive Entertainment and PartyGaming, increased its half-years profits because of the popularity of its sports betting and casino products.
As the company announced the net profit growth to 92m euros, which means a 13% increase, it was a surprise for the market expectations. Also the revenue rose a 3% to 410m euros.
However, the bookmarker can’t say the same about its poker product, it has an increased gaming tax and it continues being very weak. All of it was also accompanied by a reduction of its shares (4.6% to £94.46).
The group also verified that the firm was really affected because of the weak economy of some countries in the South of Europe, for example in Spain, as the chief financial officer Martin Weigold announced:
“It has been difficult for us, the two markets that have been most challenging have been Italy and Spain.”
“Last year we saw a significant dip in Greece but actually Greece now seems to be levelling out a bit.”
Bwin also declared that its daily revenues decayed during July and August according to the end of the Eurocup 2012 and the delay of the German Bundesliga start, because of the London Olympic Games. The firm said they were not worried because of that because it was a punctual fact.
Focusing on the poker decrease in the whole of Europe, the bookmaker announced that they were going to focus their efforts in renewing the poker products and trying to retain their clients and acquire more.
Co-CEO Jim Ryan confirmed:
“We believe we have to differentiate ourselves in this market and to make sure we pick up our share and remain competitive especially against a backdrop of an ever strengthening PokerStars.” “There is a lot of work going on under the bonnet at bwin.party but much of this is being overshadowed by regulatory developments and structural challenges in the poker market,” said analysts at Peel Hunt. “There doesn’t appear to be a need to rush in,” the broker said, maintaining its ‘hold’ on the stock.”