May 20, 2008

Bwin marketing spend to rise for Euro08 but overall spend to be checked

First quarter figures for Vienna-based operator Bwin published last week showed the firm’s gross gaming revenues up 21.3% to €104.6m, compared with €86.2m over the same period last year. Sports betting gross revenues were up a record 27.4% to €60.6m, compared with €47.6m in 2007, while margins came in at 8.7%.

Net gaming revenues were up 17.5% to €92m, compared with €78.2m in 2007 and excluded Bwin’s Turkish operations, which ceased trading in March last year. EBITDA was €25.8m, compared with €24.6m in 2007 and pre-tax profits for the period were €13m, compared with €11m last year.

Betting turnover for the firm rose 12.3% on fourth quarter 2007 to €698m and 38.4% on the same period last year. Gross revenues from Bwin’s casino sector were virtually static at €16.4m, compared with €16.1m in 2007, while its games division brought in €4.8m, compared with €3.1m last year.

Marketing expenses were up 15% on the same period in 2007 to €28.4m, but were down 14.2% on the previous quarter figure of €33m. The forthcoming European football championships in Austria and Switzerland might lead to an increase in the level of marketing spend, the company said, but the remainder of the year would see the same spending levels as the first quarter.