Revenues Up By 57 Percent at Online Casino Operator
Earnings before interest, tax, depreciation and amortization (EBITDA) came in at $31.4 million. The number of active customers in the first quarter of 2007 rose by 10.7 percent compared to the first quarter of 2006, the company said. The Bwin Group has more than 11 million registered customers -- including 7 million "play money" customers -- in over 20 core target markets. Bwin operates under international and regional licenses in countries like Gibraltar, Kahnawake (Canada), Belize and Germany, Italy, Mexico, Austria and the U.K. The company offers sports betting, poker, casino games, soft and skill games, even audio and video streams from top sporting events such as the German Bundesliga, or national soccer championships. The parent company Bwin Interactive Entertainment AG has been listed on the Vienna Stock Exchange since March 2000.
"For the first time ever in the first quarter of 2007 now ended, Bwin was able to achieve the goal it had pursued since 2004 of becoming the Number One world-wide,
in terms of both the number of active customers and gross and net gaming revenues," said Sveceny. "At the same time the reorientation of the company's strategy
announced two quarters ago has been successfully implemented, and significantly better results reported."
The company also reduced marketing expenses, increasing overall profitability. Bwin's marketing costs include shirt sponsorship for soccer teams Werder Bremen and AC Milan.
Bwin shares have been on something of a wild ride since they hit an all-time high of 105.50 euros last May. At their low point, they changed hands at 13 euros in November before rising again to yesterday's closing price of 33 euros.
Bwin made no comment on its talks to take over British rival Sportingbet.
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Favorable Environment
The legal environment for Internet gambling is looking ever more favorable in Europe for Bwin. There has been regulatory action, and court rulings, which are helping companies there. The European Commission last year initiated infringement proceedings under Article 226 of the Treaty on European Union against seven EU member states following the complaints lodged by private gaming providers. Last fall, it sent letters of formal notice to Germany, France and Austria. During the course of these infringement proceedings, the Commission had to weigh whether the national gaming regulations involved are compatible with EU law. After receipt of replies to its written request for information from the member states Denmark, Finland and Hungary, the European Commission resolved to take the next step in these proceedings by sending reasoned opinions.The European Commission's infringement proceedings against those three member states provides "confirmation of Bwin’s own legal opinion," the company said.
"We welcome the judgement by the European Commission, which underpins the ECJ’s Placanica verdict of March 6, 2007," said Norbert Teufelberger, Bwin's Co-CEO. "The decision to continue infringement proceedings against three members states simultaneously is a clear warning addressed to France, Germany and Austria to remove their current restrictions on cross-border gaming immediately."
According to another expert, as long as national legislators are unable to agree on uniform European regulations for the gaming market, national regulations will continue to be evaluated in the light of the freedoms of establishment and services anchored in the Treaty on European Union and the prohibition of discrimination. Any restrictions will be seen in the light of the requirements laid out in the Gambelli and Placanica judgements. "Against this background, countries like France are called upon to draw up gaming legislation in accordance with EU law. Bwin would gladly give its constructive support to such a process, as it has in the past," said Bwin's Co-CEO Manfred Bodner.
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