Bwin.Party looks to make €10m additional cost savings in 2014

 
Oliver Smith
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Real Madrid has been sponsored by Bwin.Party Digital Entertainment since 2007
Online gaming company Bwin.Party yesterday said it would look to cut an additional €10m (£7.9m) in costs to help it meet its targets as the firm faces additional pressure from an activist investor.

In a trading update yesterday, the firm said sports betting had benefitted from the World Cup but described the performance of its poker and casino business as “soft”.

Last month, Bwin denied that it was considering a break-up or sale of its business, but added that it continued to look for ways to increase shareholder value.

“Trading in the second quarter was mixed with revenue a little softer than expected, but clean [profits] were slightly better than expected,” said chief executive Norbert Teufelberger yesterday.

US activist investor Jason Ader’s Spring Owl vehicle has taken a five per cent stake in the company this year and has a place on its board. Ader has criticised the way the firm has been run since its 2010 merger.

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