A "disappointing" 2013 for gaming group Bwin.party Digital Entertainment (BPTY) is nothing to panic about, says chief executive Norbert Teufelberger. The underlying performance indicated a steady comeback after an overhaul of the management team and business practices this time last year.
Despite a near-20 per cent decline at the top line, total operating profit jumped to €51.9m (£43.6m), compared with an operating loss of a similar magnitude in 2012. Revenues were hit by website restrictions in Greece, declining poker markets in France and Italy and computer-migration problems as customers were moved onto a new technology platform during the year.
In order to mitigate these effects - largely the legacy of a messy merger with Party Gaming - Bwin has concentrated on shifting "from volume to value" markets, drawing a line under its customer books in 18 countries and focusing instead on a regulated and revenue-rich nine. If it achieves 2015 targets, 75 per cent of revenues will come from low-risk markets by the end of the year, with 50 per cent of sales generated by mobile platforms.
Brokerage Numis expects pre-tax profits of €97m for 2014, giving EPS of 10.2ȼ, up from €83m and 8.8ȼ in 2013 respectively.
BWIN.PARTY DIGITAL ENTERTAINMENT (BPTY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 128p | MARKET VALUE: | £1.05bn | |
| TOUCH: | 127-128p | 12-MONTH HIGH: | 155p | LOW: 104p |
| DIVIDEND YIELD: | 2.8% | PE RATIO: | 28 | |
| NET ASSET VALUE: | 84ȼ* | NET CASH: | €140m | |
| Year to 31 Dec | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (ȼ) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 348 | 43.8 | 9.8 | nil |
| 2011 | 691 | -423 | -56.0 | 3.12 |
| 2012 | 802 | -23.5 | -2.9 | 3.44 |
| 2013 | 652 | 44.9 | 5.4 | 3.6 |
| % change | -19 | +291 | +286 | +5 |
Ex-div: 23 Apr Payment: 28 May *Includes intangible assets of €626m, or 77ȼ per share £1 = €1.19 | ||||
