bwin.party Q4 in-line with expectations

Online gambling group bwin.party digital entertainment has reported that trading since the end of September has been in-line with its expectations and that it is on track to deliver around 65m euros of synergies in 2013.

More normalised gross win margins were seen in sports betting in the final three months of the year, after a very strong run of results in October, although this is still well above last year, which bwin said reflected a shift towards longer odds and the partial recovery of the 5% turnover tax from German customers.

The poker division and the casino division have both remained steady since September, and in-line with expectations.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

bwin.com customers were successfully transferred to its single technology platform in mid-December, with the remaining French and Italian migrations on track to complete in the first half of 2013.

For the year as a whole, continuing clean earnings before interest, tax, depreciation and amortisation are expected to be between 19.5% to 20.5%.

The group also said that there have been problems associated with Schleswig-Holstein trading, where it recently learned it had been awarded a six-year licence to operate online casinos and poker games.

The company explained: "Schleswig-Holstein received detailed opinions from the European Commission and Malta with further comments from the UK government, challenging its proposed revocation of the existing law, one that had established a regulated licensing regime for online sports betting, poker, casino and bingo games.

"There is now a question over how the existing regime in Schleswig-Holstein can co-exist with the alternative system proposed by the other 15 Lnder that seeks to allow sports betting only and with significant additional restrictions for the online offer, restrictions that do not apply to land-based operators.

"Whilst we welcome the move to regulate the online gaming market in Germany, this must be in a consistent and coherent manner in-line with EU law."

Finally, in the US the company is awaiting a decision by the Governor of in New Jersey over whether he will sign or veto a new bill to regulate online poker and casino gaming. He previously vetoed the bill over constitutional concerns.

The share price edged 0.18% higher to 111.70p by 09:10.

NR