Bwin.party At Vital Crossroads With Release Of 2013 Results
Back in August bwin.party started preparing investors for disappointing full-year revenues for 2013. At the time they estimated a 17% drop due to major structural changes within bwin’s target markets. Well their estimates were not far off as they just released their annual report in which total revenues for 2013 fell 19% from €801.6 million in 2012 to €652.4 million in 2013. As we reported extensively bwin.party made a strategic decision to focus on specific global markets and abandon others. In 2013 they stopped player registration and acquisition in over 18 countries.
The strategy of “lean and mean” that bwin.party have adopted has put CEO Norbert Teufelberger under pressure to deliver the goods. Depending on which side of the losses you sit, the present figures and future forecasts can be interpreted anyway you choose. Teufelberger chose of course to look at the positive aspects of the 2013 figures. He said,” Well, looking at the numbers, it obviously seems to be that way, but it was also a year where we very proactively addressed a lot of the legacy issues of the merge. We proactively got out of 18 markets, so we stopped acquisition of newer customers in those markets, and that’s obviously reflected in our numbers this year.”
The growing online gambling market in the U.S. is seen as an integral part of bwin.party’s future growth plans, Teufelberger was quick to point out that in the ever important mobile sector, bwin.party are on par with their competitor’s growth rates. New Jersey is key to bwin.party aspirations for increased revenues. They are already involved with partypoker and Borgatapoker in New Jersey which is growing slowly but steadily.
Bwin.party’s most profitable market is that of Germany which accounts for 25% of their entire revenue. Another interesting detail was that of the main sources of revenue generators. Here there was a key change from 2012 where casino play was the main revenue generator with 33.8% and sports betting was 32.8%. In 2013 this was swopped around with sports betting accounting for 36.1% and casino play making up 33%. As we reported earlier bwin.party are expecting increased revenues from the World Cup in Brazil.
On the World Cup expectations Teufelberger said,” And let’s not forget we have a World Cup ahead of us…This is now the fourth time we are enjoying a World Cup in my history with online gaming, and we believe it’s going to be the biggest event ever.” While currently operating only in New Jersey, bwin.party have applied for a licence in Nevada and hope to be part of the growing U.S. online gambling market.