Bwin.party revenues up ahead of GVC takeover
Net revenues rise 5% during final three months of 2015 with GVC buyout set to complete on 1 February
Bwin.party attributed a strong performance in sportsbook and casino and continued growth on mobile to a 5% year-on-year increase in net revenues during Q4.
The rise marks the operator’s first year-on-year quarterly improvement for more than two years and without the introduction of VAT in some European markets, the firm said net revenues would have increased 8% during the period.
In a brief trading update issued this morning, the operator also noted its ?1.2bn takeover by GVC Holdings had been approved by shareholders and was due to complete on 1 February.
Bwin.party said it continued to make significant progress with cost savings, and underlying fundamentals remained strong with continued growth to be driven by product enhancements, the 2016 European Championships, and the full-year benefit of cost savings.
Peel Hunt analyst Nick Batram said net revenue growth was “slightly better” than expected but broadly in line with consensus.
“Growth was driven by both sports and casino, with mobile becoming an increasing factor after a relatively slow start,” Batram said.
The progress made in Q4 prompted Batram to revise up bwin.party’s full-year EBITDA expectation.
“This would suggest clean EBITDA of around ?106m for the year to 31 December 2015 versus our current ?99m and consensus ?101m,” he added.
Bwin.party also confirmed it was set to receive a ?10m windfall from the ?21.2bn sale of Visa Europe to Visa Inc.
As one of Visa Europe’s principal members, bwin.party payments arm Kalixa is entitled to some of the upfront payment as well as a share of the earn-out if it remains a principal member for the duration of the four year earn-out period.
Bwin.party’s share price was up 0.85% to 130.10p at the time of writing.