Online Gambling Firm Bwin.party Continues Cuts

Published Tuesday, July 15, 2014 - Online-Casinos.com
Online Gambling Firm Bwin.party Continues Cuts

Online gambling companies are always looking to improve the bottom line but sometimes have difficulty making hard decisions that could affect many employees and customers. One firm that has been making headline news for a long time is Bwin.party Digital Entertainment which has been under critical attack from one of its board members and share holders. Former Wall Street gaming analyst and activist investor Jason Ader's Spring Owl firm has taken a 5 percent stake in Bwin.party this year and has a place on the board. Ader has criticized the way the company has been managed since it was formed by a 2010 merger between PartyGaming plc and Bwin Interactive Entertainment.

Bwin.Party, under pressure from Jason Ader to boost its performance, said an additional 10 million euro $13.6 million dollars of cuts will help it to meet the projected target for the year. Bwin shares have fallen around 30 percent this year with the company fighting off speculation rumours that a sale or breakup of the company is looming. Bwin recently reported  that sports betting had benefited from World Cup wagering but described the developments in its poker and casino business as "soft".

The company said the cost cuts, in addition to a previously announced 20 million euro, would help to offset other investments. Chief Executive of bwin.party,  Norbert Teufelberger, commented, "We are taking steps to improve operating performance, simplify decision-making, reduce complexity and costs and, as a result, remain confident about the full-year outlook," Bwin.party continues to break new ground in the US online gambling regulated market and in January of 2014, the company announced major sponsorship deals with the New Jersey Devils and Philadelphia 76ers. The combined deals include major advertising to the fans of both teams and the creation of the Dream Seat Series, a series of online poker tournaments offering ticket packages to winners and other prizes to runner-ups before every home game.

 

 

 

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