Bwin.party losing its poker face

Online gaming titan bwin.party says revenues in the first half of 2012 grew at its casino and gaming offerings but poker has been hit by strong competitors and difficulties in southern Europe.

The group was formed last year by the merger between German outfit bwin Interactive Entertainment and British firm PartyGaming and still has co-Chief Executives Norbert Teufelberger and Jim Ryan.

On a pro forma basis (comparing the results of both companies before the merger), total revenue increased by 3% to €410.0m (2011: €398.0m). This was achieved despite an 11% increase in gaming taxes so that the pro forma "clean" earnings before interest, tax, depreciation and amortisation increased 13% to €92.3m (2011: €81.9m). This is better than the forecast of €89m made by analysts at Peel Hunt.

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Bwin.party has also had to take a nasty one-off charge of €31.5m after the Spanish authorities contacted all of the major online gaming operators making clear any online operator that had ever accepted customers from Spain had an obligation to pay Spanish taxes.

The group offers four online "experiences": sports betting produced revenues of €128.1m in the first half, versus €125.7m in 2011; casino and games delivered €139.7m, against €124.3m in the prior year; bingo was down from €33m to €31.5m; while the weakest performance was from poker, which fell from €104.9m to €96.4m.

In a joint statement, Ryan and Teufelberger said they were "determined to return [poker] to growth through execution of a detailed plan that includes pooling our poker liquidity as well as repositioning our flagship PartyPoker brand."

The interim dividend has been increased by 10% to 1.72p per share although the company warned that net gaming revenue since June has fallen 8% as the end of the Euro 2012 Championships and a late start to the Bundesliga hit takings.