Bwin.Party (BPTY) chairman Philip Yea won't confirm whether the gambling group is up for sale, other than to say a number of discussions are "ongoing" and the board "has received some proposals". Rumour has it various bidders - including William Hill (WMH), which just failed to buy 888 Holdings (888), and GVC Holdings (GVC) - have been vying for a slice of Bwin since it posted a poor set of half-year results last November. At the time, management said it would make "a number of changes" to secure long-term growth.
Chief executive Norbert Teufelberger says the shift to a "label-led" business model - whereby each segment is given more autonomy and direct management - hasn't yet fed through to the financials. Instead, a squeezed poker market, the group's decision to leave Greece and a hefty €104m (£73.5m) impairment charge (against intangible assets within poker and social gaming) resulted in an operating loss of €98m last year.
Bwin is bracing for an equally challenging 2015. Revenues for the year so far are already down 12 per cent, and new taxes will put the cost base under additional pressure. Prior to these results, broker Goodbody expected adjusted EPS of 8ȼ this year, but has placed its forecasts under review.
| BWIN.PARTY DIGITAL ENTERTAINMENT (BPTY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 81p | MARKET VALUE: | £666m | |
| TOUCH: | 80-81p | 12-MONTH HIGH: | 134p | LOW: 74p |
| DIVIDEND YIELD: | 4.7% | PE RATIO: | na | |
| NET ASSET VALUE: | 70ȼ* | NET CASH: | €120m | |
| Year to 31 Dec | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (ȼ) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 348 | 44 | 9.8 | nil |
| 2011 | 691 | -423 | -56.0 | 3.12 |
| 2012 | 802 | -24 | -2.9 | 3.44 |
| 2013 | 652 | 45 | 5.4 | 3.60 |
| 2014 | 612 | -98 | -11.3 | 3.78 |
| % change | -6 | - | - | +5 |
Ex-div: 23 Apr Payment: 27 May *Includes intangible assets of €545m, or 66ȼ a share | ||||
