Bwin sports betting core driver behind 19% rise in gross revenues 12/02/2009

Stephen Carter

A strong performance across all product lines last year helped Bwin record gross gaming revenues of 420.9m, a 19% increase on the 353.1m achieved in 2007. Performance in the final quarter also stood up strongly to challenging economic conditions, with gross gaming revenues growing 15% to 117.7m, from 102.2m over the equivalent period in 2007.

The main driver for the performance over the year was a record rise in gross revenue from its core sports betting component, which grew 21.1% over the year to reach 235.4m, up from 194.3m the previous year, achieving a sports betting margin of 8%. Poker revenue also rose 14.2% over the year to reach 94.2m, up from 82.5m the year before, while casino revenue grew 4.3% to 94.2m, from 82.5m.

For the final quarter of 2008, Bwin also posted record sports betting revenues of 64.5m, an 8.5% increase on the 59.5m achieved over the comparable period the previous year. However, it was poker which proved the star performer during this period, growing 27.1% to EUR 27.7 million, up from 21.8m in the final quarter of 2007. Casino revenue also benefited from the traditionally busier winter period, growing 19.5% to 19.3 million, from 16.1m for the equivalent period in 2007. Record games revenue was also recorded, up 27.9% to 6.2 million, from 4.8m the previous year.

Player acquisition performed strongly across the year, with Bwin adding 1.1 million new active real money customers, 323,000 of these coming on board in the final quarter.

Based on a strong start to trading in 2009, the company is forecasting gross gaming revenues for 2009 of 430m to 445m, and confirmed an adjusted EBITDA target for 2009 of more than 100m.

Evolution Securities’ Ivor Jones said that with no debt and a healthy cash pile (set to grow 137% year-on-year in 2009) supported by factors such as limited regulatory risk, insulation from many of the factors now pressuring the market, and its intention to participate in sector consolidation, they were increasing Bwin’s share price target to 22 from 20.

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Posted: 12/02/2009