Betting firm Bwin.party ahead by a nose as revenues inch up
BETTING giant Bwin.party yesterday reported revenues of €215.9m (£172.5m) for the first quarter, up less than one per cent on the same period last year.
Shares in the firm fell by five per cent after it said growth in online casino games has been partially offset by reduced margins in sports betting.
“Trading performance overall in the first quarter has been as expected,” the firm said. “Casino has continued to perform well as has our sports business that saw strong growth in both player activity and amounts wagered, albeit at a lower margin compared with last year which was particularly strong.”
The Gibraltar-based online gambling company was formed last March following a merger between sports betting firm Bwin and casino specialist Party Gaming.
Investors have yet to reap the benefits of this merger but the co-CEOs said they “remain on-track to realise the €65m of merger synergies” which will help to “mitigate the impact of additional gaming taxes” that are due to come into force.
Bwin.party has struggled with the licensing situation in Germany but says it is set to win a license in the state of Schleswig Holstein, valid until 2018.