Bwin.party widens first-half loss on weak poker and casino revenue
Gaming giant Bwin.party widened its first-half loss, reflecting a fall in casino and poker revenues.
Loss before tax in the six months to 30 June 2014 came to €94m, up from €11.6 the previous year.
Revenue declined to €317.1m from €342.5m as a solid performance from sports betting was offset by year-on-year declines in casino and poker.
Chief executive Norbert Teufelberger said the company is on track with planned €30m in cost reduction measures, with €13.8m achieved in the first half, but confessed that a "more fundamental" approach is needed to turnaround the business.
"This requires a major change: we are simplifying our structure to accelerate the execution of our plans to drive revenue growth, increase our focus on customers in nationally regulated and/or taxed markets, and further reduce infrastructure costs," Teufelberger said.
"This new approach will also allow us to consider alternative financing and corporate structures in order to create additional value. We are confident that the steps we are taking will underpin our financial performance and remain confident about the full year outlook."
The group recommended a half-year dividend of 1.89p per share, up 5%.
RD