April 2nd, 2012
The world’s largest listed online gambling operator, bwin.party Digital Entertainment, has released its financial results for 2011 showing an over 93 percent year-on-year increase in net revenues to €674.5 million.
Total revenues for the twelve-month period grew similarly to €691.1 million when compared with 2010 despite the closure of its French casino and the 2010 FIFA World Cup ‘primarily due’ to its merger.
2011 pro forma earnings before interest, tax, depreciation and amortisation rose by three percent year-on-year to €199.3 million due to synergies ‘coming through more quickly than expected’ and ‘offsetting increased gaming duties from regulated markets’ while actual clean earnings from continuing operations improved by 79 percent when compared to 2010 to €168.3 million.
The firm declared that it had realised synergies of €23.3 million in 2011 including five million Euros related to discontinued operations and was ‘ahead of target’ with plans to deliver €40 million in savings this year and €65 million by 2013.
All of this saw bwin.party report an actual loss after tax from continuing operations of €414.7 million and a total deficit post tariff of €431 million although it described current trading as ‘robust’ with average gross daily revenues up two percent quarter-on-quarter to €2.93 million.
“We made excellent progress in 2011,” read a statement from Jim Ryan and Norbert Teufelberger, Co-Chief Executive Officers for Bwin.Party.
“The swift execution of a number of integration plans for our technology, people, products and brands has been rewarded with financial synergies coming through more quickly than expected, offsetting increased gaming duties payable as markets regulate. We remain on-track to deliver approximately €40 million of synergies this year and €65 million in 2013.
“We expect to gain competitive advantage this year from additional scale and improved flexibility that will flow from the integration and migration of our main products to a single technology platform. As integration projects are completed, we are channelling more resources into driving innovation across the business and through new channels including our proprietary mobile gaming platform. We are also extending our reach into new areas of digital entertainment such as social gaming where we see significant potential.
“The proposed regulatory changes in Europe, particularly those in Germany, which were announced shortly after completion of the merger last year and that had a significant adverse impact on our share price one week later, have resulted in an impairment of some of the goodwill acquired as part of the merger. Had the merger completed one week later, no such impairment would have been required. This is a non-cash charge and the business has continued to deliver an impressive operational and financial performance, generating strong cashflow.”