Bwin.party Q3 Revenues Fall But Stay True To “Lean And Mean” Business Plan
Bwin.party has declared their intention to focus on fewer and more regulated markets as part of their core marketing strategy. As we reported in August this marketing tactic is aimed at gaining quality gaming markets in order to maximize profit. In order to adopt his bold strategy they are aware that in the short term their revenues will be hit hard as they tale on a smaller piece of the gambling pie.
In line with this thought Bwin.party announced that the blocking of online gaming sites by the Greek government would have an impact on their yearly profits.
In a statement released Bwin announced that their third quarter revenues fell by 21% to 145.7 million euros which is what they expected with their new “lean and mean” strategy. The Greek Government blocked over 400 gambling sites and like many other online operators this also would affect Bwin’s revenues.
The U.S. online gambling market is a major focus of Bwin and they are looking forward to the Nov. 26 launch in New Jersey in which they are heavily invested in. Chief executive Norbert Teufelberger stated again that their downsizing will increase overall revenues in the long run as many unprofitable markets are no longer a liability to the company and these would offset losses suffered like that of the Greek dispute. He was optimistic and even expected to exceed their 70 million euros full-year target.
Norbert summed up the third quarter results by saying,” As we expected, our underlying third quarter performance appears to have represented the floor in what has been a transitional year for the group.”