Bwin.Party Sees 2012 Financials Drop from Prior YearTuesday, March 19th, 2013 by Ryan
The online gambling world as a whole has been strange over the past few years. There has been a whole lot of up and down in terms of the profit that we’ve seen sites bringing in, but most importantly we’ve seen some crazy changes happening since Black Friday hit the United States poker players. While many sites had to ban United States players from taking action to their site, other sites fully shut down and lost enough traffic to completely have to give up their sites as a whole. One of the largest online gambling companies out there is bwin.party, who does a little bit of everything ranging from online poker to online casino play to sports betting and much more. This company is one of the largest out there, and they have had some great years in the past.
The news here is that the company released their 2012 fiscal year financial results this past week, and unfortunately for the company, we saw a decline of pretty much everything. The numbers were disappointing, and it’s not something that the company itself would like to see, or also that the online gambling world wants to see (unless you are a competitor company). In total they saw their overall revenue come in at €801.6 million, which obviously is an incredible amount of money, but when you look at the fact that it is 2 percent lower than the previous year, that is definitely a good amount of money. Another stat that was pointed out was the fact that their Earnings before interest, taxes, depreciation, and amortization (EBITDA) went from €199.3 million down to €164.9 million, which is a total of a 17 percent drop.
One of the highlights at bwin.party has to be their online poker network, which is headed by the popular Party Poker, was actually the WORST of all of the aspects of their company in terms of the different divisions that are out there. They saw the poker revenue that is brought in drop 17 percent as well, as it went from €263.8 million down to €219 million. In total the net revenue after bonuses and the other adjustments that had to be done, the net revenue ended up being €173.8 million. After the cost of sales was brought into the mix we saw the gross poker profit have an 18 percent decline from 2011, which went from €188 million to €154.6 million.
Last year bwin.party saw the poker aspect of their company make up a total of 26.1 percent of their revenue, but this year it ended up being only 22 percent. The sports betting and online casino revenue were close to even and both made up a nice percentage of the profit, as casino revenue was 33.8 percent, and sports betting was 32.8 percent, both of which were actually UP from last year interestingly. Bingo went from 7.9 percent to 8 percent, and the other revenue saw a slight jump from 1.8 percent to 3.4 percent to round out the total revenues from the company.
If things couldn’t get worse for the poker aspect of the company, 2013 hasn’t been a great start either. Through 10 weeks in this new year the revenue has dropped 13 percent from the fourth quarter of 2012, as the gross daily revenue is €482,000 to this point. So what exactly has happened you ask? Bwin.party has gone out stating that it could be a few different things that made this happen, including the integration of the different multiple platforms, and also the entry into new markets as well.
As far as a potential answer to the issues goes, there was the talks of the company moving back into the United States soon, as they are prepared to do so within the upcoming year apparently. They are planning on working on the partnerships with different United States companies to continue to build their brands once the state regulate online gambling. The poker site will obviously be a massive part of this, because when/if online poker is legalized in the United States again then we’ll see a ton of players possibly move towards bwin.party.
They have been going back and forth with two other well-known sites/networks in Full Tilt Poker and the iPoker Network to try to stay at the top of the online poker world. Since Full Tilt came back, they have stayed at the top of the rankings, but according to a few reports we have actually seen Full Tilt drop from the second spot (which many people weren’t expecting) to the fourth spot. The news came out that Party has actually taken over that number two spot, and iPoker is behind them in third place.