11th Mar 2015 07:19
LONDON (Alliance News) - Bwin.Party Digital Entertainment PLC Wednesday said it swung to a loss in 2014, hit by a writedown on its poker operations as that business suffered a 29% decline in revenue due to the loss of its Greek market and challenging conditions in several other markets.
The online gaming company reported a pretax loss of EUR97.9 million for 2014 compared with a EUR44.9 million profit in 2013, as revenue dropped to EUR611.9 million from EUR652.4 million. It booked a EUR104.4 million non-cash impairment charge, mainly for the poker operations writedown.
Its closely-watched earnings before interest, tax, depreciation and amortisation was EUR102.2 million, down from EUR108.0 million in 2013, hit by the revenue decline and increased start-up costs in the US, but the company said it had exceeded its overall planned cost reduction target of EUR30 million and is on track for an additional EUR15 million of savings in 2015.
Bwin.Party also said betting volumes are ahead of last year so far in 2015, but weaker-than-expected gross margin wins mean average daily revenue is down 12% on the year. Still, it said it remains confident about its full-year outlook.
It raised its final 2014 dividend to 1.89 pence, from 1.80p, bringing the total for the year to 3.78p, up from 3.60p in 2013.
By Steve McGrath; [email protected]; @stevemcgrath1
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