6th May 2011 07:00
6 May 2011
bwin.party digital entertainment plc
('bwin.party' or the 'Company' and, together with its subsidiaries, the 'Group')
First Quarter 2011
Pro forma Key Performance Indicators and Interim Management Statement
This is an interim management statement for the period from 1 January 2011 until 5th May 2011. This is the first time that bwin.party has produced combined KPIs for Q1 2011, Q4 2010 and Q1 2010, which are provided for illustrative purposes only, given that the merger did not become effective until 31 March 2011. Note that all segmental splits are based on the new basis of reporting for bwin.party. Historic financial information and KPIs on this basis will be available for download later today at www.bwin.party.com
First quarter highlights - pro forma revenue
·; Total net revenue1 up 2% to €217.8m (2010: €213.9m); average daily revenue up 4% versus the previous quarter with growth in sports betting and casino & other games offset by weakness in poker
·; Sports betting revenue up 11% to €71.6m (2010: €64.6m); average daily sports betting revenue up 12% versus the previous quarter due to strong gross win margin
·; Casino & Other Games revenue up 8% at €64.8m (2010: €60.2m); average daily casino revenue up 3% versus the previous quarter due to increased player activity
·; Poker revenue down 14% to €54.0m (2010: €62.8m); average daily poker revenue down 4% versus the previous quarter due to competitive pressures
·; Bingo revenue flat at €18.3m (2010: €18.3m); average daily bingo revenue up 3% versus the previous quarter driven by both increased player numbers and yield
·; Current trading has seen a pick-up in poker player sign-ups following the DoJ's action against certain US-facing sites but it is too early to fully assess likely impact
Commenting on today's announcement, Jim Ryan and Norbert Teufelberger, Co-CEOs said:
"We are pleased to announce our first results following the merger with our announcement today showing what we would have achieved had the merger between PartyGaming and bwin occurred on 1 January 2010. Overall pro forma revenue in Q1 was 2% ahead versus the prior year despite the closure of our casino business in France. In respect of current trading, average daily gross revenue is down 7% versus the average for the first quarter reflecting the normal seasonal pattern seen in previous years.
"Following steps taken by the US government to enforce its laws, we have seen an uplift in new player sign-ups on our poker sites despite the impact of seasonality. In the period 15 April to 30 April 2011, we have experienced a 33% increase in average daily new player sign-ups for poker when compared with the previous two-week period. While this represents only a short trading period, it is nonetheless encouraging.
"We are continuing to lobby for changes to the proposals made by the Minister Presidents in Germany on 6 April that proposed an unviable form of regulation which we and others believe to be inconsistent with EU law, as well as monitor developments in Greece, Spain and the Netherlands. Outside Europe, the recent action taken by the regulatory authorities in the US may signal an appetite to regulate and there are bills currently being contemplated at both a State (California and Florida) as well as a Federal level. We are hopeful that the momentum we have seen in recent weeks may result in further positive developments both in Europe and the US. While it is difficult to predict the short-term impact of any of these regulatory changes, we remain on-track to deliver our merger synergies as previously communicated and remain confident about the Group's prospects."
Pro Forma Consolidated Key Performance Indicators (Excluding Other Revenues)
Three months to 31 March | 2011 | % change | % change | 2010 |
versus | versus | |||
Q4 2010 | Q1 2010 | |||
Active player days (m) | 23.6 | (2%) | (5%) | 24.9 |
Daily average players (000) | 262.5 | 0% | (5%) | 276.8 |
Yield per active player day (€) | 8.8 | 4% | 6% | 8.3 |
Yield per unique active player in the quarter (€) | 113.7 | 2% | 12% | 101.3 |
Real money sign-ups (000) | 471.7 | 3% | (8%) | 513.0 |
Unique active players during the period (000) | 1,835.0 | (0%) | (10%) | 2,032.2 |
Average net daily revenue (€000) | 2,318.5 | 4% | 1% | 2,288.4 |
Total pro forma revenue was up 2% year-on-year with strong performances in sports betting and casino & other games, partially offset by a decline in poker revenue. Bingo revenues were flat year on year.
The sale of certain domain names was the primary driver behind a 15% year-on-year increase in other revenue. Total average net daily revenue including other revenue increased by 2% year-on-year and by 4% quarter-on-quarter to €2,419,500 (2010: €2,376,300).
Across all product verticals, the Group added over 471,000 new sign-ups during the quarter which while down on the prior year, was 3% up on the previous quarter (Q4 10: 457,900). The number of daily average players was unchanged versus the previous quarter but down 5% year-on-year that was almost entirely driven by the decline in poker.
Turning to each of the product verticals in turn, in sports betting, while player activity was steady year-on-year and slightly down quarter-on-quarter, player yields increased strongly driven by higher than expected gross win margins of 8.3% (2010: 7.6%). As a result, average daily revenue in sports betting was up 11% to €795,200 (2010: €718,100) which was also 12% up on the previous quarter.
In casino & other games, player numbers were flat year-on-year but up 5% quarter-on-quarter as the closure of our French casino on 30 June 2010 masked underlying growth. Yield per active player day increased by 8% to €24.4 reflecting an improved mix of games and lower player bonuses, and average daily revenue was up 8% to €720,300 (2010: €669,000). Excluding the impact of closing our French casino, average daily revenue would have been up 15% versus the prior year.
In poker, as with many of our listed competitors, the impact of an unlevel playing field in dotcom poker markets continued to be a challenge and average daily players fell 12% year-on-year. However, quarter on quarter the daily average number of players increased by 3% reflecting growth in the newly regulated French market. Yield per active player day was down 2% year-on-year as we continued to invest in marketing campaigns in France and Italy where our combined market share across our networks remains strong at approximately 20% and 16% respectively at the end of March 2011. The net impact of these movements was that average daily poker revenue declined by 14% versus the prior year to €600,100 (2010: €698,200) and by 4% versus the previous quarter. However, the impact of the recent action taken by the US Department of Justice against certain US-facing sites, together with the launch of cash game poker in Italy, now expected in July 2011, should both be positive for poker going forward.
Bingo was flat year-on-year with average daily revenue of €202,900 (2010: €203,100) reflecting a 3% increase in daily average players that was offset by a decline in yield per active player day. Quarter-on-quarter, average daily revenue grew by 3% due to the positive impact on average daily players from a 7% increase in new player sign-ups, as well as a small increase in player yield.
Current trading
Average daily gross revenue in April (excluding other revenue) totaled €2,751,300 (Q1 11: €2,949,900) reflecting the usual seasonal trends. Average gross daily revenue for poker was €700,600 (Q1 11: €777,700), for casino & other games it was €820,800 (Q1 11: €859,400), for bingo it was €380,900 (Q1 11: €425,000) and for sports betting it was €849,000 (Q1 11: €887,800).
Following the action taken by the US authorities against US facing sites on 15 April 2011, average daily new poker player signups have increased by 33% in the period 15 April to 30 April 2011 when compared to the two weeks prior to that date.
Material Events, Transactions and Financial Position
As at 31 March 2011, the Group had cash (and cash equivalents) of €383.0m, processor receivables of €50.0m, bank borrowings of €37.1m and client liabilities (including progressive prize pools) of €179.0m.
On 15 April 2011, the Group confirmed that it was conducting a formal review of its distribution policy and would announce the results of that review at the Company's forthcoming Annual General Meeting to be held in June 2011.
There have been no material events, transactions or changes in the financial position of the Group since the 2010 annual results were announced on 3 March 2011 other than outlined in this statement.
Full details of all of the Group's quarterly KPI data by segment reflecting the new basis of reporting as well as historic pro forma financial information for the years 2007-2010 will be made available for download at the Group's website at http://www.bwinparty.com later today.
Conference call
Friday 6 May 2011
For analysts and investors there will be an opportunity to put questions to Jim Ryan and Norbert Teufelberger, Co-CEOs, and Martin Weigold, CFO, by way of a conference call at 09.30 (British Summer Time). The details of the call are as follows:
Dial-In No: | +44 (0) 20 3003 2666 |
Replay (available for 1 week): | +44 (0) 20 8196 1998 |
Replay passcode: | 2940708# |
Contacts:
bwin.party digital entertainment plc
Investors
Peter Reynolds +44 (0) 20 7337 0100
Konrad Sveceny +43 (0) 50 858 20017
Media
John Shepherd +44 (0) 20 7337 0100
Matthias Winkler +43 664 305 0000
Appendix I
Pro forma Key Performance Indicators
Sports Betting - Key Performance Indicators
Three months to 31 March | 2011 | % change | % change | 2010 |
versus | versus | |||
Q4 2010 | Q1 2010 | |||
Active player days (m) | 11.4 | (5%) | 0% | 11.4 |
Daily average players (000) | 126.2 | (3%) | (1%) | 126.9 |
Yield per active player day (€) | 6.3 | 15% | 11% | 5.7 |
Yield per unique active player in the quarter (€) | 73.3 | 10% | 12% | 65.5 |
Real money sign-ups (000) | 178.5 | (7%) | (12%) | 203.9 |
Unique active players during the period (000) | 976.4 | (1%) | (1%) | 986.2 |
Average net daily revenue (excluding skins) (€000) | 795.2 | 12% | 11% | 718.1 |
Casino & Other Games
Three months to 31 March | 2011 | % change | % change | 2010 |
versus | versus | |||
Q4 2010 | Q1 2010 | |||
Active player days (m) | 2.7 | 4% | 0% | 2.7 |
Daily average players (000) | 29.6 | 5% | (0%) | 29.7 |
Yield per active player day (€) | 24.4 | (2%) | 8% | 22.5 |
Yield per unique active player in the quarter (€) | 141.6 | 0% | 16% | 121.9 |
Real money sign-ups (000) | 40.1 | 8% | (9%) | 43.9 |
Unique active players during the period (000) | 457.9 | 0% | (7%) | 493.8 |
Average net daily revenue (excluding skins) (€000) | 720.3 | 3% | 8% | 669.0 |
Poker
Three months to 31 March | 2011 | % change | % change | 2010 |
versus | versus | |||
Q4 2010 | Q1 2010 | |||
Active player days (m) | 10.2 | 0% | (12%) | 11.6 |
Daily average players (000) | 113.5 | 3% | (12%) | 129.0 |
Yield per active player day (€) | 5.3 | (5%) | (2%) | 5.4 |
Yield per unique active player in the quarter (€) | 62.5 | (6%) | (7%) | 67.1 |
Real money sign-ups (000) | 203.5 | 11% | 2% | 199.1 |
Unique active players during the period (000) | 863.8 | 1% | (8%) | 936.3 |
Average net daily revenue (excluding skins) (€000) | 600.1 | (4%) | (14%) | 698.2 |
Bingo - Key Performance Indicators
Three months to 31 March | 2011 | % change | % change | 2010 |
versus | versus | |||
Q4 2010 | Q1 2010 | |||
Active player days (m) | 2.4 | 0% | 4% | 2.3 |
Daily average players (000) | 26.6 | 2% | 3% | 25.8 |
Yield per active player day (€) | 7.6 | 1% | (4%) | 7.9 |
Yield per unique active player in the quarter (€) | 90.0 | 3% | 63% | 55.3 |
Real money sign-ups (000) | 49.6 | 7% | (25%) | 66.2 |
Unique active players during the period (000) | 203.0 | (2%) | (39%) | 330.4 |
Average net daily revenue (excluding skins) (€000) | 202.9 | 3% | (0%) | 203.1 |
Appendix II
Actual Key Performance Indicators - PartyGaming Plc only
Consolidated
Three months to 31 March | 2011 | % change | % change | 2010 |
versus | versus | |||
Q4 2010 | Q1 2010 | |||
Active player days (m) | 8.0 | 1% | (2%) | 8.2 |
Daily average players (000) | 89.3 | 4% | (2%) | 91.4 |
Yield per active player day (€) | 11.0 | (2%) | 3% | 10.7 |
Yield per unique active player in the quarter (€) | 124.9 | (3%) | 20% | 104.2 |
Real money sign-ups (000) | 255.1 | 15% | 4% | 245.5 |
Unique active players during the period (000) | 708.4 | 3% | (16%) | 847.6 |
Average net daily revenue (excluding skins) (€000) | 982.9 | 2% | 0% | 981.1 |
Sports Betting - Key Performance Indicators
Three months to 31 March | 2011 | % change | % change | 2010 |
versus | versus | |||
Q4 2010 | Q1 2010 | |||
Active player days (m) | 1.0 | 0% | 0% | 1.0 |
Daily average players (000) | 10.9 | 1% | 3% | 10.6 |
Yield per active player day (€) | 5.6 | 8% | 6% | 5.3 |
Yield per unique active player in the quarter (€) | 62.7 | 1% | (0%) | 62.9 |
Real money sign-ups (000) | 19.2 | 7% | (4%) | 20.0 |
Unique active players during the period (000) | 87.1 | 5% | 9% | 80.0 |
Average net daily revenue (excluding skins) (€000) | 60.6 | 9% | 8% | 56.0 |
Casino & Other Games
Three months to 31 March | 2011 | % change | % change | 2010 |
versus | versus | |||
Q4 2010 | Q1 2010 | |||
Active player days (m) | 1.0 | 0% | (9%) | 1.1 |
Daily average players (000) | 11.4 | 1% | (7%) | 12.3 |
Yield per active player day (€) | 38.7 | (1%) | 17% | 33.1 |
Yield per unique active player in the quarter (€) | 215.0 | (6%) | 8% | 198.4 |
Real money sign-ups (000) | 27.6 | 18% | 3% | 26.8 |
Unique active players during the period (000) | 184.1 | 4% | (0%) | 184.9 |
Average net daily revenue (excluding skins) (€000) | 439.9 | 0% | 8% | 407.4 |
Poker
Three months to 31 March | 2011 | % change | % change | 2010 |
versus | versus | |||
Q4 2010 | Q1 2010 | |||
Active player days (m) | 4.7 | 2% | (6%) | 5.0 |
Daily average players (000) | 52.6 | 5% | (5%) | 55.4 |
Yield per active player day (€) | 6.4 | (3%) | (6%) | 6.8 |
Yield per unique active player in the quarter (€) | 66.8 | (3%) | (6%) | 71.4 |
Real money sign-ups (000) | 162.6 | 18% | 12% | 145.1 |
Unique active players during the period (000) | 456.0 | 3% | (4%) | 476.3 |
Average net daily revenue (excluding skins) (€000) | 338.2 | 2% | (10%) | 377.7 |
Bingo - Key Performance Indicators
Three months to 31 March | 2011 | % change | % change | 2010 |
versus | versus | |||
Q4 2010 | Q1 2010 | |||
Active player days (m) | 1.9 | 0% | 6% | 1.8 |
Daily average players (000) | 20.9 | 2% | 4% | 20.0 |
Yield per active player day (€) | 6.9 | 5% | (1%) | 7.0 |
Yield per unique active player in the quarter (€) | 99.2 | 5% | 112% | 46.7 |
Real money sign-ups (000) | 45.7 | 10% | (15%) | 53.6 |
Unique active players during the period (000) | 130.8 | (1%) | (52%) | 269.7 |
Average net daily revenue (excluding skins) (€000) | 144.1 | 6% | 3% | 140.0 |
1 Includes net revenue from network services, payment services, domain sales, World Poker Tour and InterTrader.com
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