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Trading statements

bwin.party remains confident

09 July 2015 08:08

bwin.party digital entertainment's gaming revenue in the three months to 30 June was in-line with its expectations and the board remains confident in the full year outlook.

The group says sports turnover was ahead of plan although sports gross win margins were below normalised levels.

Mobile/touch has continued to grow strongly: in June 2015 mobile/touch represented (31%) of total gross gaming revenue (June 2014: 23%) with sports betting at over 50% (June 2014: 37%). The group says non-core asset disposals have already realised over £36m, in-line with its target of £30m to £50m.

Chief executive Norbert Teufelberger said: "Despite challenging comparatives together with the impact of EU VAT and POC tax, we are pleased with our business performance in the first half. We have completed our new organisational set-up and streamlined our decision-making processes, significantly improving our operational performance.

"Sports volumes are ahead of last year despite the 2014 World Cup, although poor sporting results drove gross win margins lower, holding back revenue performance in the period. Casino betting volumes have also remained strong and in poker we are closing the gap on last year. Our bingo revenue was in-line with last year but our UK business now attracts the POC tax that was introduced in December 2014.

"We have made good progress on the disposal of our non-core assets with World Poker Tour, Winners2 and United Games all sold during the second quarter and we have already reached our target range of £30m to £50m of disposal proceeds. As well as generating cash, these disposals are also helping us to reduce the complexity within our business.

"Our shift to a label-led structure is delivering the operational efficiencies we anticipated and we are on course to generate cost savings of at least £15m this year.

"We remain confident about the prospects for the second half and the outlook for our business."

At 8:08am:

(LON:BPTY) bwin.party digital entertainment PLC share price was +2.25p at 101.35p

(LON:GVC) GVC Holdings Plc share price was 0p at 445p

Story provided by StockMarketWire.com

Related Company: BPTY

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