Bwin Reports Nett Profits Of + Euro 50 Mill
Published: Friday, April 18, 2008 Online-Casinos.com
BWIN REPORTS NET PROFITS OF OVER EURO 50 MILL
Vienna listed betting group achieves an important turnaround
Bwin, the Vienna-listed group that is a major force in the European online gambling sector has released 2007 results that show a turnaround for the business year, with net profits of Euro 50.4 million, a major improvement on the losses of Euro 539.6 million euros in the previous (2006) year.
Adjusted operating profits were Euro 72.8 million in 2007, after losses of Euro 585.8 million in 2006, and gross gaming revenues surged 21.4 percent to Euro 350.3 million.
The company statement said Bwin had experienced the strongest organic growth across the European industry over the 12-month period to the end of December 2007 and had enjoyed record gross and net gaming revenues during the fourth quarter of 2007, as well as achieving revenues higher than those achieved before the company’s voluntary exit from the US and Turkish markets due to legislative developments in those countries.
Fourth-quarter profits were up to Euro 51.2 million, after a loss of Euro 489.8 million in the same period in 2006.
The turnaround was mainly due to a reversal in impairment charges in connection with the company's acquisition of Ongame Group, an online gaming company, Bwin said.
Earnings before interest, taxes, amortization and depreciation (EBITDA) was Euro 13.2 million, compared with a negative EBITDA of Euro 2.6 million in the fourth quarter of 2006.
Bwin has shifted its focus on its core markets and products following , and in the future it will seek to increase its sports sponsoring activities, where legally possible. The record gross gaming revenues it had enjoyed were the result of the strong performance of its core sports betting and poker products, the company revealed, saying this justified its strategy of investing in proprietary poker and sports betting platforms to safeguard future earning potential, and of cautious regional diversification.
Gross gaming revenues for the year were up 21.4 percent to Euro 350.5 million (2006: Euro 288.6 million). Sports betting gross revenues were up 19 percent to Euro 191.9 million, and annual margins were 8.7 percent.
Poker in Europe appears to remain a strong performer, with Bwin's revenues for the year up an impressive 38.6 percent to Euro 82.3 million. Net gaming revenues for the year were up 25.9 percent to Euro 309.7 million (2006: Euro 246 million) despite a fall in the number of active customers to 1 659 819 (2006: 2 162 250).
Trading thus far in 2008 has been strong enough for Bwin to anticipate another record quarter, with gross gaming revenues up 4.7 percent on the previous quarter to date.
