Bwin.party Hoping for Rebound After Tough 2013

Sun, Mar 23, 2014

Bwin.party suffered major losses in revenue—especially stemming from the company’s involvement in the Greek market—last year. But with FIFA World Cup expected to give online betting a boost and a successful launch of Party Poker in the U.S., the company is expecting to see growth in 2014.

Even as bwin.party was announcing a significant revenue loss in 2013, company officials were striking an upbeat note for 2014.

With the FIFA World Cup expected to lift all international betting sites and the company’s successful start in the U.S. online gambling market—the company is partnered with the Borgata Hotel Casino & Spa in New Jersey and has taken the early lead in that market—bwin.party is forecasting growth for 2014.

“2013 was a challenging year for our business, but it also marked a turning point as we increased our focus on regulated and to-be-regulated markets, began to roll-out new and refreshed versions of our mobile and desktop products, and commenced the transformation of our technology infrastructure through the adoption of the agile development methodology,” said Norbert Teufelberger, the firm’s CEO in a press release.  “Having streamlined the shape and size of our business we now have the foundations to return our business to sustainable growth.”

Bwin’s gross earnings fell to €108 million or $150.17 million in 2013, down from €165 million in 2012. Total revenue was down to €652.4 million from €801.6 million in 2012.

The company said the decrease came from falling revenue and higher gaming taxes in Germany, as well as start-up costs for their New Jersey operations. The company also suffered from having its ISP blocked in Greece.

Despite the bad numbers, bwin.party officials pointed to a number of positives for 2014.

Gross gaming revenue through mobile devices grew by 77 percent to €76.9 million, up from €43.4 million in 2012. The company also reduced costs by €97 million in 2013 versus 2012 and posted an operating profit of €51.9 million, though that was down €16.5 million from 2012, the company said.

Along with continues growth in the U.S. market, the company says its new emphasis on regulated markets will lead to a quality over quantity approach to online gaming.

And with the FIFA World Cup expected to break records for bookmaker sites in 2014, bwin.party websites are expected (like many others) to have a significant spike in revenues.

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