13th Nov 2013 08:47
LONDON (Alliance News) - Bwin.party Digital Entertainment PLC said Wednesday that it would see full year revenues and earnings dented by its websites being blocked in Greece, although cost reductions would help to mitigate some of the damage.
Revenue in the third quarter ended September 30 was down 21% to EUR145.7 million from EUR184.4 million in the previous year, with performance hampered by the company's shift toward higher-value business, softer-than-expected margins in sports-betting, and the website issues in Greece.
Performance in the company's Sports business were hurt by a gross win margin - at 9.1%, up from 7.8% the year before - that the company said was short of what it had expected, following a run of results in European football leagues in September that went against it, leading to a fall in average daily sports betting revenues.
Since August access to over 400 online gaming sites have been restricted in Greece, Bwin said, after internet service providers were ordered to block them by the Greek Gaming Commission.
Bwin expects to exceed its full-year cost saving target of EUR70 million, which will partially offset the damage caused by the website blocks in Greece.
Despite falling revenues, Bwin said that average daily net revenue was up 18% in the third quarter.
The company said that it is on-track to launch poker and casino in New Jersey as soon as it is clear to do so. The company received a transactional waiver from the Division of Gaming Enforcement in New Jersey on Friday, which means it is now eligible to participate in New Jersey's online gaming market when it is expected to open up November 26.
The New Jersey online gaming market is set to be opened as a newly regulated market and is attracting the world's biggest online gaming companies. It is the third US state to open its market.
Bwin.party has said that its intends to launch poker and casino games under both its own brands and those of its New Jersey partner Borgata Casino.
Shares in Bwin.party were trading down 2.3% early Wednesday morning at 121.62 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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