Mixed Results in Bwin Poker Q1 RevenueTweet Share
According to a recent statement, Austrian gambling giant Bwin experienced mixed results in its online poker operations for the first quarter. While the 2009 acquisition of Italian poker room Gioco Digitale led to a year-to-year increase of 22 percent, revenue actually dropped by 17 percent when income from the Italian poker room is removed.
In the first quarter of last year, Bwin Poker’s online revenue was €31.1 million, compared with a strong €38.1 million (including Gioco Digitale) in Q1 this year. When the Italian site is removed from the equation, Bwin’s Q1 revenue tumbles to a troubling €25.8 million.
Bwin blames much of the drop on preparations for a venture into the French market and product launch delays, as well as “increased competition from companies still offering real-money poker to US customers”, a move which the company claims to give its rivals “significant unfair advantages in terms of size with respect to player liquidity and free cash flow generation.”
Although the Italian acquisition has helped to buoy Bwin Poker, the drop of revenue outside of Italy is troubling. No new competitors entered the US market, and poker revenue across the industry has climbed about 14 percent this year, suggesting that other card rooms are not experiencing the same downturn.
With its French expansion plans, Bwin will likely continue to post increasing revenue throughout this year. Players and industry analysts alike should continue to monitor the performance of this poker room throughout the year.