Bwin.party announce more cost cutting after profits slump

Announcing their half yearly results bwin.party said that the company are set for more cost cutting following the decline in business ever since the creation of the joint company three years ago.

In what was a possible indication of the online giant breaking up parts of the business as shareholder Jason Ader puts pressure on bwin to consolidate the business. Bwin said said it would be prepared to play a part in industry consolidation.

Chief Executive Norbert Teufelberger said that performance had been disappointing. He conceded that some of the company’s problems were home grown, but added that it has also been hit by a tougher regulatory environment in a number of markets.
Teufelberger said the company would cut costs by a further 15 million euros in 2015, on top of 30 million euros that it will save this year.

“We are simplifying our structure to accelerate the execution of our plans to drive revenue growth, increase our focus on customers in nationally regulated and/or taxed markets, and further reduce infrastructure costs,” Teufelberger said.

The company said that H1 results showed a drop in profits to 46.4 million euros for the six months, the same period last year showed a profit of 60.7 million euros, with profits slumping with online poker and changes in removing the company after regulatory changes in some territories.