Online Gambling Operator Bwin.party Preparing to Sell

Published Thursday, March 12, 2015 - Online-Casinos.com
Online Gambling Operator Bwin.party Preparing to Sell

The internet betting industry has seen a number of companies come and go either by acquisition or failure with some firms coming out on top and others struggling to maintain a decent profit margin. One online gambling operator bwin.party Digital Entertainment stands out as an example of the difficult changes encountered by online gambling firms in a forever evolving environment.

Since the formation of bwin.party in March of 2011 with the merger of PartyGaming and Bwin Interactive Entertainment there has been significant highs and lows for the operator. Prior to the passage of the Unlawful Internet Gambling Enforcement Act of 2006 by the U.S. Congress, PartyPoker was the world's largest online poker brand. Its market share has fallen since then, but it remains the third largest online poker room in the world.

Norbert Teufelberger, Chief Executive Officer of bwin.party digital entertainment commented recently  that despite having suffered a year-on-year drop in revenue during 2014, the operator was still able to make “solid” progress. While sports betting is the main source of revenue after generating €231.7 million in 2014, up 1% on the previous year other sectors including casino and games, poker and bingo businesses all suffered losses. The CEO remains positive about performance in the year and is confident there is lots of potential for growth in 2015.

Teufelberger explained, “We have made solid progress this year in growing our share of revenues from nationally regulated and/or taxed markets, increasing our mobile footprint and reducing our cost base,” adding, “However, the full year impact of ISP blocking in Greece coupled with the structural decline of regulated poker markets in Continental Europe affected our overall financial performance for the year.

The company has however been looking for potential buyers for all or part of the operation which was confirmed recently by bwin.party chairman Philip Yea. The unfolding of the process is sure to cause speculation on the current value of the company shares.

 

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