Bwin Revenue Hit By Greek Blockage
Earlier this week Bwin.party said that its full year revenues will be hit by to block on gambling websites in Greece, however, cost reductions are expected to help reduce the damage.Bwin said that its revenue fell by 21% in the third quarter to €145.7 million euros which it says reflects on its strategy of trying to focus on fewer markets, but ones which should provide higher returns.
Greek authorities have blocked internet access to more than 400 gambling sites including Bwin’s which the company says will have a net impact on revenue and EBITDA this year.
Bwin’s Chief Executive Norbert Teufelberger said “As we expected, our underlying third quarter performance appears to have represented the floor in what has been a transitional year for the group.”
However, Teufelberger added that full-year cost savings for this year are likely to exceed the target of €70 million which will help to offset the impact of the Greek ban. Furthermore, he said that the company is on track to launch online poker and casino games in New Jersey later this month.
Following the announcement Bwin shares fell 2% to 121.8p.