bwin.party digital entertainment plc
Half year report for the six months ended 30 June 2013
Sustainable revenue base now forms a solid foundation for future growth
Nationally regulated and taxable markets represent approximately half of H1 2013 revenue
● On-track to deliver at least €70m of cost savings in the current year versus 2012 and up to €20m of additional savings in 2014
● All requisite documentation filed with New Jersey regulator; systems being installed in Borgata Casino ahead of planned launch in November
● New Director of Poker and Director of Product and Technology appointed; launch of all-new version of partypoker imminent
● Total revenue of €342.5m (2012: €410.0m) down 16% in line with previous guidance, reflecting the tactical shift from 'volume to value' and migration losses
● Clean EBITDA from Continuing operations of €60.7m down 34% reflecting the impact of a turnover tax on sports betting in Germany introduced on 1 July 2012, ISP blocking in Belgium and the closure of slots in Spain
● Clean EPS from Continuing operations of 4.3 € cents per share down 53% (2012: 9.2 € cents per share)
● Half year dividend increased by 5% to 1.80 pence per share (2012: 1.72 pence); proposed buy-back of up to €10m of shares during the next 12 months
● Full year revenue expected to be between 14% and 17% below 2012 with Clean EBITDA margins likely to be 2% lower than 2012 (excluding revenues and costs associated with a US launch)
● Launch of new products, improving productivity and lower costs means the Group is well-positioned to return to growth in 2014
