Bwin.party claims ‘sequential’ growth despite Q1 revenue drop
Online gaming operator bwin.party has said that the business is continuing to deliver “sequential” growth despite having suffered a year-on-year fall in revenue during the three months to March 31, 2014.
The company said revenue for the first quarter of 2014 totalled €165.7 million ($228.7 million), an 8% drop on the €180.2 million recorded in the corresponding period last year.
Despite the year-on-year loss, total revenue was up 1% on the fourth quarter of 2013 despite there being two less days in the most recent period.
The company attributed the revenue drop to its tactical shift from ‘volume to value’ and the ISP blocking Greece, in addition to ongoing competitive pressures in the European online poker market and migration losses.
Bwin.party also reported that although average daily revenues for all verticals declined on a year-on-year basis, all verticals did see an increase when compared to the fourth quarter of 2013, thus continuing what the firm described as “sequential” growth seen since the third quarter of last year.
Sports betting remains bwin.party’s biggest source of income after it generated €64.7 million in revenue during the first quarter of 2014.
Casino and games contributed €52.6 million to the total revenue figure, while poker and bingo generated €24.4 million and €13.7 million respectively.
Norbert Teufelberger, chief executive of bwin.party, said: "The business has continued to deliver sequential growth since Q3 2013 that we predicted would be the low point in terms of revenue performance.
"Whilst we are now moving into the seasonally quiet trading period, with the roll-out of new products, more mobile extensions and the FIFA World Cup to come, the Board remains confident about the Group's full year prospects."
Meanwhile, bwin.party has also announced that Philip Yea is to succeed Simon Duffy as chairman of the board.
Yea, who has been appointed as an independent non-executive director of the firm, will succeed Duffy as chairman when he steps down at the conclusion of the company’s annual general meeting on May 22.
Yea is currently a non-executive director of Vodafone and Aberdeen Asian Smaller Companies Investment Trust, as well as chairman of the board of trustees of the British Heart Foundation.
Prior to this, he also held various positions at the likes of Investcorp, Diageo, Guinness and Manchester United.
“Philip brings a wealth of experience that I am sure will prove invaluable as we continue our transition to nationally regulated markets,” Teufelberger said.
Related article: Bwin.party ends ‘challenging’ year with revenue drop