Vienna-based Bwin Interactive Entertainment AG has released its financial results for the third quarter of the year showing a 10.9 percent increase in net gaming revenues to $105.7 million from $95.3 million for the same period last year.
Bwin stated that the third quarter is traditionally the weakest for sportsbetting due to the reduced number of sporting events, particularly after the European Championship. Despite this, it revealed that gross gaming revenues had increased 11.2 percent for the period to $121.1 million from $108.8 million while gross sportsbetting revenues increased 7.7 percent to $64.4 million, a margin of 7.4 percent from last year’s 8.5 percent. It also reported 892,000 active customers, a rise of 7.9 percent, alongside 186,000 new active real-money customers, a 3.1 percent decline.
The gaming giant stated that it would report adjusted earnings before tax of $12.1 million, which was down from the $19.1 million it made from 2007’s third quarter, while its results after tax would be $8.8 million, up on last year’s $6.4 million.
As the current financial crisis begins to bite, Bwin revealed that it would undertake a ‘consolidation phase’ in parallel with a cost-cutting programme in order to achieve significantly improved results for next year. The firm revealed that this would involve a reduction in brand-building expenses alongside a reorganisation of its structure, particularly in the areas of IT and operations.
“Over and above this, Bwin focuses even more strongly on its existing markets while, at the same time, pursuing a less aggressive expansion of its product pipeline,” read a statement from the Austrian firm.
“Projects with a return on investment of more than a year will, therefore, be postponed in favour of maximising cashflow. Intensified quality management coupled with the reinforcement of innovative processes will enable Bwin to steadily develop new products. This will eliminate parallel developments and optimise the product life cycle.”