Bwin.Party on track as third-quarter revenues edge up
LONDON (Reuters) - Online gambling company Bwin.Party posted a 2 percent rise in third-quarter revenue, helped by a strong performance in sports betting, and said it was confident about its full-year outlook.
Third quarter revenue was 148.7 million euros (£119.20 million), the firm said on Thursday, up from 145.7 million euros a year ago.
Sports betting net revenue rose 11 percent in the period on the back of higher gross win margins, mobile growth and the soccer World Cup, helping offset declines across its casino, poker and bingo divisions.
The group said trading in the first two weeks of its fourth quarter had been in line with its expectations and that it remained on course to achieve its target of 15 million euros of incremental savings next year.
Bwin has faced pressure from U.S. activist investor Jason Ader's Spring Owl vehicle to shake-up its board, improve its growth strategy and reduce infrastructure costs.
Spring Owl took a 5 percent stake in the company this year and has since taken a place on the board. Ader has criticised Bwin's management for failing to extract rewards from combining the businesses since its merger.
Shares in the firm closed at 82.60 pence on Wednesday, down 31 percent on a year ago, valuing the business at about 673 million pounds.
(Reporting by Neil Maidment, editing by James Davey)
