28th Oct 2015 07:51
LONDON (Alliance News) - Bwin.Party Digital Entertainment PLC on Wednesday reported a fall in revenue in the first nine months of 2015 as it said it faced a tough comparative period while being hit by VAT charges from the European Union.
The online gaming company said total revenue in the nine months ended September 30 decreased 8% to EUR429.9 million from EUR465.8 million the year before, which it said reflected the absence of a major football tournament, the sale of non-core businesses and the impact of EU VAT.
The comparative period included the football World Cup which helped boost sales last year.
Earnings before interest, tax, depreciation and amortisation rose 5%, however, to EUR79.8 million from EUR76.1 million. Excluding EU VAT and the UK point of consumption tax, Ebitda would have increased 26%, Bwin said.
Bwin added that sports margin has recovered from the first half but is still lower than last year, while it anticipates making further savings in administration costs in the fourth quarter after already meeting its EUR15 million cost savings target at the end of the third quarter.
Current trading has been strong, Bwin said, with average daily revenue up 9%.
"Current trading has been strong, despite the impact of EU VAT and further declines in poker. With solid progress on expanding our mobile footprint and the full-year benefit of the cost savings already made, we remain confident about the outlook," Chief Executive Norbert Teufelberger said in a statement.
Bwin added that it expects its merger with GVC Holdings PLC to complete in early 2016.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
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