Bwin’s results for the third quarter and nine month periods of 2007 were badly received yesterday by analysts across Europe.
Although the company reduced losses to €5m for the three month period to the end of September, compared with losses of €22.6m over the same period in 2006, according to Bloomberg, analyst Christine Reitsamer from Sal. Oppenheim issued a neutral rating and said: “Bwin doesn't seem to be able to show profitable growth. Investors don't like that.'' Wolfgang Matejka, chief investment officer at Meinl Bank in Vienna, told the news agency: ``Bwin has not made the profit some people were waiting for.''
However, Bwin co-chief executive Norbert Teufelberger remained optimistic about the European market. He said: "Who would have thought six months ago that France would move politically? There is movement now. We hope that we will have more clarity in a few months. There won't be a European Union-wide solution, but in individual countries. The UK already has a solution. Our goal is to find one in one or several major countries. If that's going to happen, there will be a landslide."
The company generated gross gaming revenues of €86.2m for the quarter, up 20% on the €71.8m produced in 2006, sports betting revenues rose 15.3% to €47.3m, compared with €41m in 2006 and sports betting margins were 8.5%. Total group revenues for the quarter were €90m, a 34% rise on €67.3m for the same period in 2006. EBITDA for the quarter was €15.2m, compared with a loss of €5.2m in 2006.
Gross gaming revenues for the nine month period were €248m, a 20% increase compared with €206.7m for the same period in 2006. Total group revenues for the period were €252.7m, a 34.5% on €188m in 2006. EBITDA for the nine month period was €49.7m., compared with a loss of €8m last year.
Quarterly net gaming revenues came in at €75.5m, a 22% increase compared with €62m in 2006 and 13.8% rise compared with the previous quarter. Bwin said this was due mainly to an increase in net gaming revenues from poker to €18.5m, a 51% rise compared with 2006 and for sports betting to €40.5m, up 17.2% compared with the same period for 2006.
Bwin’s poker, casino and games divisions all strong performances during the quarter, rising respectively 46.2% (€20.7m), 4.9% (€14.4m) and 32.5% (€4m), while sports betting margins were up on the second quarter of 2007 (7.5%), but down on last year’s figures (9.2%).
Marketing expenses for the quarter were down 44% to €29m, compared with €52m in 2006, the company said it had concentrated on customer acquisition marketing and account reactivations during the period and bonuses totalling €8.5m, 10% of gross gaming revenues, were issued to customers.