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30 Dec 2014 18:09
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30 December 2014
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bwin.party digital entertainment plc
('bwin.party' or the 'Company' and, together with its subsidiaries, the 'Group')
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Pre-close trading update
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Key points
Γ Bet volumes and active player numbers as expected but exceptionally weak gross winΒ margin in sports betting, particularly in December, has impacted overall revenueΒ performance in the fourth quarter
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Γ Total revenue for 2014 is now expected to be in the range β¬608m to β¬612m
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Γ On-track to deliver the β¬30m of cost savings targeted in 2014
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Γ Continuing Clean EBITDA[1] margin for 2014 is expected to be between 16% and 17%Β including Clean EBITDA losses of approximately β¬10m from New Jersey and β¬7m fromΒ social gaming
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Γ Discussions with third parties regarding industry consolidation are continuing andΒ further announcements will be made as and when appropriate
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Trading update
In the period since 30 September 2014, trading has been broadly in-line with expectations except for an exceptionally weak gross margin in sports betting with the leading teams in several European leagues enjoying a strong run to the cost of European-facing sports books.
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As a result, total revenue for 2014 is now expected to be in the range of β¬608m to β¬612m and the Clean EBITDA margin between 16% and 17%.
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Discussions with third parties
Further to the announcement made on 12 November 2014, the Group is continuing its discussions with several parties regarding a variety of potential business combinations with a view to creating additional value for bwin.party shareholders. As previously announced, there can be no certainty as to whether or not such discussions will result in an offer being made for the Company. Further announcements will be made as and when appropriate.
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Social gaming
We are in active discussions regarding the sale of Win, the Group's social gaming business and expect to make a further announcement shortly.
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Full Year Results
The full year results for the year ending 31 December 2014 will be announced on 10 March 2015.
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Contacts:
bwin.party digital entertainment plcΒ
InvestorsPeter Reynolds +44 (0) 20 7337 0177
MediaJay Dossetter +44 (0) 20 7337 0134
[1] EBITDA adjusted for exchange differences, reorganisation expenses, income or expenses that relate to exceptional items, and non-cash charges relating to share-based payments
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