Revenues for bwin.party in the first three months of this year have fallen by 17 per cent year-on-year, and poker was partly responsible.
The Gibraltar headquartered company had €180.2 million of revenue in this year’s first quarter, down from €215.9 million for the same time last year. The world’s largest publicly traded online gaming firm put the revenue fall down to increased regulation and its recent moves to shift its focus on areas that have regulated or are regulating online gaming.
Its poker operations, however, fell drastically in the first quarter and accounted for a fair chunk of the company’s revenue decrease. Sign ups of new players to the company’s online poker services fell as did cross-sell from the bwin.com site. This resulted in a 37 per cent decrease in first quarter revenues for poker, leading to a total €33.1 million of the company’s revenue that came from that area of bwin.party’s business.
It is an issue that has obviously affected the company, as seen by bwin.party deciding to alter its poker service, which it plans to launch later this year. The company said that the revised service is designed to “improve the revenue trajectory of [the] business”; showing that it still views poker as a core company component.
Bwin.party CEO Norbert Teufelberger said that while the declines were set to continue until the second half of the year due to the shifts, he was also upbeat about the company’s long term future and stability. Total revenue for bwin.party in 2013 is expected to fall by ten per cent in its full-year figures as it continues to restructure. The shift in focus to fewer areas, however, is set to save the company a total of €70 million over the entire year.
Teufelberger also said that a number of product launches by the company, along with the launch of poker and casino in New Jersey and cost-cutting initiatives were proof that it was not all doom and gloom for bwin.party. He also said its focus on ‘core regulated markets’ would allow the company to operate with a lower cost base which would help set the stage for future sustainable growth.
Revenues for bwin.party’s casino operations fell by 20 per cent to €57 million while sports betting fell by five per cent to €67 million. Revenues for its bingo operations fell by nine per cent to €14.2 million.