bwin.party digital entertainment plc yesterday released its interim Management Statement
and Q1 2013 Key Performance Indicators. Total revenue was down 17% to €180.2m (2012: €215.9m), which the company blamed on the introduction of a 5% turnover tax on sports betting in Germany "and lower than expected player activity on poker and casino following the dotcom migration."
At the country specific level, the company said that amounts wagered on sports betting in Germany fell by 52% year-on-year. This was the primary driver of a 31% fall in the amount wagered to €749.2m (2012: €1,083.4m). Overall, net revenue fell by 5% to €67.0m (2012: €70.6m) and average daily net revenue fell by 4% to €744,400 (2012: €775,800).
At the product level, amounts wagered on Casino & other games declined by 17% to €1,805.3m (2012: €2,164.7m) primarily atributable, the company said, to its decision to cease acquisition marketing in certain dotcom territories, which had had "a significant impact on new player sign-ups that fell by 61. Overall, net revenue fell by 20% to €57.0m (2012: €71.0m) and average daily net revenue fell by 19% to €633,300 (2012: €780,200).
Within the Poker segment average daily players fell by 37% year-on-year and 15% quarter-on-quarter to 61,100 (2012: 96,700). As a result net revenue fell by 37% year-on-year and by 18% versus the previous quarter to €33.1m (2012: €52.2m) and average daily net revenue fell by 36% to €367,800 (2012: €573,600).
Bingo reported a 9% fall in revenue year-on-year. Overall, net revenue fell by 9% to €14.2m (2012: €15.6m) and average daily net revenue fell by 8% to €157,800 (2012: €171,400)
As regards current trading, bwin.party said that overall, average daily net revenue in the 6 weeks to 12 May (excluding other revenue) totalled €1,611,800 (Q1 13: €1,903,300), a 15% decrease over the previous quarter and a 22% decrease over the same period in 2012. Average daily net revenue for sports betting was €598,700 (Q1 13: €744,400), for casino & other games it was €574,700 (Q1 13: €633,300), for poker it was €298,400 (Q1 13: €367,800) and for bingo it was €140,000 (Q1 13: €157,800).
As ever with bwin.party the promised land lies just around the corner. The company said that it is finalising preparations so that it can be eligible to launch several branded services in New Jersey as soon as the market opens - currently expected to be at the end of November 2013.