bwin Interactive Entertainment AG announced record gross and net gaming revenues in the fourth quarter 2007, with above levels achieved before exiting the US and Turkish markets.
Gross gaming revenues were up 24.9% to EUR 102.3 mln (Q4 2006: EUR 81.9 mln) and sports betting gross gaming revenue was up 30.2% to EUR 59.5 mln (Q4 2006: EUR 45.7 mln). Sports betting reported a margin of 9.6%, poker revenue was up 26.7% to EUR 21.8 mln (Q4 2006: EUR 17.2 mln) and net gaming revenues were up 28.3% to EUR 89.4 mln (Q4 2006: EUR 69.7 mln).
For the financial year 2007 bwin reported the industry’s strongest organic growth with gross gaming revenues of EUR 350.5 mln, up 21.4% (FY 2006: EUR 288.6 mln) and record sports betting gross gaming revenues, up 19.0% to EUR 191.9 mln (FY 2006: EUR 161.2 mln). The sports betting margin stood at 8.7% with poker revenue up 38.6% to EUR 82.3 mln (FY 2006: EUR 59.4 mln) and net gaming revenues up 25.9% to EUR 309.7 mln (FY 2006: EUR 246.0 mln).
Due to the strong performance of its core business (sports betting and poker), the Group boosted gross gaming revenues in the financial year 2007 and in the last quarter it increased gross and net gaming revenues above the levels achieved before exiting the US market in late 2006 and the Turkish market in early 2007.
Compared to its most important competitors, which report in USD or GBP, in 2007 bwin reported the strongest organic growth of net gaming revenues in a euro-based comparison.
Net gaming revenues (gross gaming revenues less all deductions such as betting duties, casino taxes and bonuses granted to customers) increased due mainly to an increase in net gaming revenues from poker and sports betting.
The number of active customers in 2007 (single total for all products) declined to 1.6 mln, a reduction of 6.9% over the total of 1.8 mln for 2006, the year of the Soccer World Championships. In 2007, 798,000 of these customers became active for the first time (FY 2006: 1,200,000 new active customers). However, a rising trend has been observed for both active and new active customers since Q3 2007.
Due to current business performance bwin expects another record quarter. During the first 75 days of the quarter average daily gross gaming revenues increased by 4.7% compared to Q4 2007. For the full year 2008, bwin anticipates a sports betting margin in a bandwidth of 8 to 10%.
