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Bwin.party reports 'challenging' year
13-03-2014 07:07
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- Revenue declines across all divisions
- Cost cuts to improve growth
- Full-year dividend raised
Bwin.party said 2013 was a 'challenging year' as the gaming company reported a drop in annual revenues.
Total revenue for the year through December came to €652.4m, down from €801.6m in 2012, reflecting regulatory issues including the blocking of internet service providers (ISP) in Greece and gaming taxes in Germany.
Turnover fell across all divisions including a 27% drop in sports betting, a 14% decrease in casino and games and 28% decline in poker.
In August 2013, Greece's government decided to block ISPs which the company said "almost eliminated" Greek revenue during the fourth quarter.
The firm said it seems unlikely that there will be any positive resolution in the short-term.
"2013 was a challenging year for our business, but it also marked a turning point as we increased our focus on nationally 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," said Chief Executive Norbert Teufelberger.
Gaming taxes rose in Belgium and Germany, mitigated by a drop in taxes in Italy and France.
Total operating profit was €51.9m, compared to an operating loss of €55.7m the previous year, reflecting the absence of retroactive taxes and lower amortisation costs.
Costs reduced by €97m against the previous year, well ahead of the target savings of €70m.
"Having streamlined the shape and size of our business we now have the foundations to return our business to sustainable growth," Teufelberger added.
The company recommended a final dividend of 1.80p per share, an increase of 5% on the prior year's 1.72p. It brought the total full-year dividend to 3.60p, up from 3.44p in 2012.
RD
- Cost cuts to improve growth
- Full-year dividend raised
Bwin.party said 2013 was a 'challenging year' as the gaming company reported a drop in annual revenues.
Total revenue for the year through December came to €652.4m, down from €801.6m in 2012, reflecting regulatory issues including the blocking of internet service providers (ISP) in Greece and gaming taxes in Germany.
Turnover fell across all divisions including a 27% drop in sports betting, a 14% decrease in casino and games and 28% decline in poker.
In August 2013, Greece's government decided to block ISPs which the company said "almost eliminated" Greek revenue during the fourth quarter.
The firm said it seems unlikely that there will be any positive resolution in the short-term.
"2013 was a challenging year for our business, but it also marked a turning point as we increased our focus on nationally 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," said Chief Executive Norbert Teufelberger.
Gaming taxes rose in Belgium and Germany, mitigated by a drop in taxes in Italy and France.
Total operating profit was €51.9m, compared to an operating loss of €55.7m the previous year, reflecting the absence of retroactive taxes and lower amortisation costs.
Costs reduced by €97m against the previous year, well ahead of the target savings of €70m.
"Having streamlined the shape and size of our business we now have the foundations to return our business to sustainable growth," Teufelberger added.
The company recommended a final dividend of 1.80p per share, an increase of 5% on the prior year's 1.72p. It brought the total full-year dividend to 3.60p, up from 3.44p in 2012.
RD
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