29 March 2012
bwin.party digital entertainment plc
Audited results for the year ended 31 December
2011
Clean EBITDA ahead of market expectations due to
faster than expected synergies
-
Pro forma# total revenue slightly ahead at
816.0m despite closure of French casino and World Cup
in 2010. Actual total revenue up 93% to 691.1m
primarily due to the Merger*
-
Pro forma Clean EBITDA from Continuing operations
up 3% to 199.3m primarily due to synergies coming
through more quickly than expected, offsetting
increased gaming duties from regulated markets.
Actual Clean EBITDA from Continuing operations up 79%
to 168.3m primarily due to the Merger
-
Synergies realised in 2011 of 23.3m (including
5.0m related to Discontinued operations), ahead of
target. Integration plans on-track to deliver 40m of
synergies in 2012 and 65m in 2013
-
Continuing pro forma Clean EPS of 18.5 cents
per share (2010: 19.0 cents); actual Clean EPS of
17.9 cents per share (2010: 17.8 cents)
-
Non-cash impairment of intangible assets of
408.7m (2010: nil) following the introduction of
proposed changes to the European regulatory and fiscal
landscape in 2011
-
Recommended final dividend of 1.56
pence per share (2010: nil) making a
total FY11 dividend of 3.12 pence per share (2010:
nil)
-
Current trading robust with average gross daily
revenue up 2% versus the previous quarter to 2.93m (Q4
11: 2.87m)
|
|
Pro forma#
|
Actual
|
|
Year ended 31 December
|
2011
million
|
2010
million
|
2011
million
|
2010
million
|
|
Revenue
|
|
|
|
|
|
Sports betting
|
259.7
|
258.6
|
193.9
|
20.7
|
|
Casino & Games
|
262.7
|
241.0
|
237.5
|
152.1
|
|
Poker
|
209.7
|
226.3
|
184.6
|
124.2
|
|
Bingo
|
63.7
|
71.3
|
58.5
|
51.4
|
|
Net revenue
|
795.8
|
797.2
|
674.5
|
348.4
|
|
Other revenue
|
20.2
|
16.8
|
16.6
|
8.9
|
|
Total revenue
|
816.0
|
814.0
|
691.1
|
357.3
|
|
Clean EBITDA~ from Continuing operations
|
199.3
|
193.2
|
168.3
|
94.2
|
|
Clean EBITDA~ from Discontinued
operations^
|
(17.5)
|
(25.8)
|
(13.1)
|
(0.2)
|
|
Total Clean EBITDA~
|
181.8
|
167.4
|
155.2
|
94.0
|
|
(Loss) profit after tax - Continuing
operations
|
(401.2)
|
85.7
|
(414.7)
|
40.2
|
|
(Loss) profit after tax
|
(422.3)
|
50.4
|
(431.0)
|
38.9
|
*On 31 March 2011 PartyGaming Plc merged
with bwin Interactive Entertainment AG ('the
Merger').
# The actual results include
PartyGaming's results throughout 2011 and the results of
bwin with effect from the Merger on 31 March 2011.
Pro forma results set out the financial performance of the
Group as if the Merger had always been in place.
~ Before the provision for costs associated with the
Group's Non-Prosecution Agreement, amortisation and
impairment of acquired intangibles, reorganisation
expenses, merger and acquisition expenses, exchange
differences and before non-cash charges relating to
share-based payments (see reconciliation of Clean EBITDA to
operating profit (loss) below).
^ Discontinued operations refers to
Ongame's B2B business as well as operations located
physically outside of the US but which relate to US
customers that were no longer accepted following the
enactment of the UIGEA.
~ EPS before the provision for costs associated
with the Group's Non-Prosecution Agreement, amortisation
and impairment of acquired intangibles,
reorganisation expenses, merger and acquisition
expenses, share-based payments and foreign exchange
differences (see reconciliation of Clean EPS to Basic EPS
in note 9 to the Financial Information).
Commenting on today's results announcement, Jim Ryan
and Norbert Teufelberger, Co-CEOs said:
"We made excellent progress in 2011. The swift
execution of a number of integration plans for our
technology, people, products and brands has been rewarded
with financial synergies coming through more quickly than
expected, offsetting increased gaming duties payable as
markets regulate. We remain on-track to deliver
approximately 40m of synergies this year and 65m in
2013.
"We expect to gain competitive advantage this year
from additional scale and improved flexibility that will
flow from the integration and migration of our main
products to a single technology platform. As integration
projects are completed, we are channelling more resources
into driving innovation across the business and through new
channels including our proprietary mobile gaming
platform. We are also extending our reach into new
areas of digital entertainment such as social gaming where
we see significant potential.
"The proposed regulatory changes in Europe,
particularly those in Germany which were announced shortly
after completion of the Merger last year and that had a
significant adverse impact on our share price one week
later, have resulted in an impairment of some of the
goodwill acquired as part of the Merger. Had the
Merger completed one week later no such impairment would
have been required. This is a non-cash charge and the
business has continued to deliver an impressive operational
and financial performance, generating strong
cashflow."
On current trading and outlook they added:
"We are well-placed to capitalise on the regulatory,
technological and competitive shifts that continue to
transform our industry at a rapid pace. The scale and
breadth of our revenue base, coupled with our significant
technology resources put us in a strong position to succeed
and to capture a bigger share of the expanding digital
entertainment market. This year we will add more
casino games, continue to improve our poker and bingo
offerings and gear up for the UEFA Euro 2012 football
tournament and the London 2012 Olympic Games, both of which
take place in the traditionally quieter summer trading
period.
"We have secured strong business partners in the
United States ahead of any regulation there and have also
applied for a license in Spain which is expected to
regulate in the second quarter of this year. In Germany, we
have applied for a gaming license in Schleswig-Holstein,
the only EU-compliant licensing regime
available.
"Our current trading has been robust with gross
average daily revenue up 2% versus the fourth quarter of
2011 to 2.93m (Q4 11: 2.87m) and we are recommending a
final dividend per share of 1.56p making 3.12p per share
for the full year."
Contacts:
bwin.party digital entertainment
plc
Investors
Peter
Reynolds
+44 (0) 20 7337 0177
Media
John
Shepherd
+44 (0) 20 7337 0100
Interviews with Jim Ryan, Norbert Teufelberger and
Martin Weigold
Interviews with Jim Ryan and Norbert
Teufelberger, Co-CEOs, and Martin Weigold, Chief Financial
Officer, in video/audio and text will be available from
7.00am BST on 29
Analyst meeting, webcast, dial-in and conference call
details: Thursday 29 March 2012
There will be an analyst meeting for invited
UK-based analysts at Numis Securities, The London Stock
Exchange Building, 10 Paternoster Square, London, EC4M 7LT
starting at 9.30am BST. There will be a simultaneous
webcast and dial-in broadcast of the meeting. To
register for the live webcast, please pre-register for
access by visiting the Group's website
(www.bwinparty.com
). Details for the dial-in facility are
given below. A copy of the webcast and slide
presentation given at the meeting will be available on the
Group's website later today.
Dial-in details to listen to the analyst presentation
at 9.30am, 29 March 2012
|
9.20 am
|
Please
call:
+44 (0) 203 003 2666
|
|
Title
|
bwin.party
Full Year
Results
|
|
9.30 am
|
Meeting starts
|
A recording of the meeting will be available for a
period of seven days from 29 March
2012. To access the recording please dial the
following replay telephone number:
|
Replay telephone number:
|
+44 (0) 208 196 1998
|
|
Replay passcode:
|
2117064#
|
Conference call: 2.30pm, 29 March
2012
For international analysts and investors there will
be an opportunity to put questions to Jim Ryan, Norbert
Teufelberger and Martin Weigold on a conference call using
the following number:
|
2.20pm
|
Please
call:
+44 (0) 203 003 2666
|
|
Title
|
bwin.party
Full Year
Results
|
|
2.30pm
|
Conference call starts
|
A recording of the conference call will be available
for seven days from 29 March 2012
on the following number:
|
Replay telephone number:
|
+44 (0) 208 196 1998
|
|
Replay passcode:
|
4237123#
|
All times are British Summer Time (BST).
About bwin.party
bwin.party digital entertainment plc (LSE:
BPTY) is the world's largest listed online gaming company.
The Company was formed from the merger of bwin Interactive
Entertainment AG and PartyGaming Plc on 31 March
2011. Incorporated, licensed and regulated in
Gibraltar, the Group also has licences in France, Italy and
Denmark. With offices in Europe, India, Israel and the US,
the Group generated total pro forma revenue of 816.0m and
pro forma Clean EBITDA of 199.3m in 2011. bwin.party
commands leading market positions in each of its four
key product verticals: online sports betting, poker, casino
and bingo with some of the world's biggest online gaming
brands including www.bwin.com,
www.PartyPoker.com
, www.PartyCasino.com
and www.FoxyBingo.com
.The Group's scale, technology and
strong portfolio of games collectively differentiates its
customer offer from those of its competitors. bwin.party is
a constituent member of the FTSE 250 Index and the
FTSE4Good Index Series, which identifies companies that
meet globally recognised corporate responsibility
standards. For more information about bwin.www.bwinparty.com
.
|
|
Pro forma
|
Actual
|
|
Year ended 31 December
|
2011
cents
|
2010
cents
|
2011
cents
|
2010
cents
|
|
Basic EPS (loss per ordinary share) -
Continuing operations
|
|
|
|
|
Standard
|
(47.1)
|
10.4
|
(56.0)
|
9.8
|
|
Clean~
|
18.5
|
19.0
|
17.9
|
17.8
|
|
Basic EPS (loss per ordinary share) -
Total operations
|
|
|
|
|
Standard
|
(49.6)
|
6.2
|
(58.2)
|
9.5
|
|
Clean~
|
16.0
|
14.8
|
15.8
|
17.7
|
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