Considered the world’s largest publicly trading online gambling company, bwin.party has announced less promising results from the first quarter than expected. Despite profits remaining steady, the first quarter of 2012 has said to have been rocked by a weakening in both the poker and bingo markets.
The company has said that they saw an overall increase in revenue of 1% which was said to be due mostly to strong growth and development in the casino and sports betting fields, whilst they had been hardest hit by a challenging poker environment. They revealed that their average number of daily players across their poker platforms had dropped by 15% resulting in a 3% decrease in revenue. Despite this seeming negative, the company were quick to retort that the drop in player numbers had resulted in an increase in player quality, with a marked increase in yield per player per day.
They have also been knocked by a 15% drop in bingo revenue. This was put down to the closing of its market in Denmark and also due to a large loss of market share in Italy, as 2011 saw the country being swamped with new sites and companies vying for a piece of the lucrative pie.
In the UK, bwin.party is probably best known to our readers as the owner of Cashcade Ltd, the popular and well managed marketing company behind the Foxy Bingo brand amongst others. Created in 2000, Cashcade initially existed to run a skills game website but soon developed into a larger portfolio, beginning with bingo sites including Foxy and then the wider online gambling world. In 2009, they became part of PartyGaming who were subsequently merged with bwin.party and the current situation is thus.
Despite all the negative talk regarding the drop in revenue across some markets, the company remain positive. In a statement released by the company’s chief executives they claimed to still be firmly on track to reach the €65m of merger synergies they planned. With several new products in the pipeline including a download casino product and the launch of the European Football Championships, the company are resolute that the slightly weakened position they have found themselves in will soon rectify itself.
Managing such a large range of gambling arms across so many different markets can seem like a juggling act to an outsider; and it certainly seems that to achieve expected profits, areas which may not have been projected to boost profits are doing so, whereas those considered sure fire hits such as poker are not performing as expected. We’ll have to wait until the next quarter to see.