From iGaming Business
Online gaming provider bwin.party digital entertainment has released an interim management statement regarding its financial performance over the three months to the end of March showing that the firm experienced a 17 percent year-on-year drop in total revenues to €180.2 million ($231.8 million).
Gibraltar-based bwin.party stated that the fall in first-quarter revenues was due to ‘the introduction of a five percent turnover tax on sportsbetting in Germany’ along with a ‘significant reduction in acquisition marketing in several dotcom countries’ and ‘lower than expected’ poker and casino player activity ‘following the dotcom migration’.
The operator declared that ‘clean’ first-quarter earnings before interest, tax, depreciation and amortisation were ‘in line’ with its expectations due to cost savings generated on the back of its ‘volume-to-value’ approach while it expects to realise €70 million ($90.1 million) in total savings this year followed by further economies in 2014 and 2015.
“The drop in revenues in the first quarter reflects our tactical shift from ‘volume’ to ‘value’ that we announced at the time of the full-year results as well as lower than expected player activity in poker and casino following the dotcom migration in December,” said Norbert Teufelberger, Chief Executive Officer for bwin.party.
