Shares Drop After Posting Loss on Negative Revenue

August 30, 2013 Shares Drop After Posting Loss on Negative Revenue shares dropped 13% on Friday after the release of the company’s 2013 half year results.

Year-to-date gross revenue as of June 30, 2013 was €342.5 million, down from €410 million in 2012.  This was a 16% drop year-over-year.  Earnings before interest, taxes, depreciation and amortization (EBITDA) were €60.7 million, down 34% over the first half of 2012.  Full 2013 EBITDA is expected to be between 14% and 17% lower than 2012, according to the company’s press release.  The net loss after taxes for the first half of 2013 was €11.6 million.  This was an improvement over the loss of €21.3 million posted in the first half of 2012.

European regulations appear to have contributed to some of the decline in revenue.  This includes a 5% turnover tax on sports betting in Germany, where 24% of’s business is generated. stopped accepting signups in 18 countries during the second quarter, some of which were nations where the regulatory environment had changed. posted negative numbers against last year’s numbers in all four major categories.  The company posted losses in revenue during the first six months of 2013 versus 2012 in sports betting (-7.6%), casino and games (-20.7%), poker (-35.4%), and bingo (-12.7%).  Other revenue was up 67%.

The Consolidated Key Performance Indicators for poker showed the decline the company is facing in that segment.  Average daily players fell 38% from 86,800 to 54,100.  New player sign-ups in the first six months of the year fell from 212,300 in 2012 to 97,000 in 2013.  Yield per player was up 5% from €6.1 to €6.4.  Average daily poker revenue fell 35% from €529,700 in 2012 to €344,200 in 2013. 

The company is hopeful the future release of its new poker product will improve its numbers in that sector. also anticipates the release of a new bingo platform and several sports related products in late 2013.  The company feels these will also improve performance.

Norbert Teufelberger, CEO of, stated the first 8 weeks of the third quarter were also down versus 2012:

In the eight week period ended 25 August 2013, average net daily revenue was down 8% versus the second quarter of 2013 and down 21% versus the same period in 2012. stated that it has submitted all necessary licensing information to New Jersey regulators.  It is also installing systems at Borgata in anticipation of the scheduled November launch of online gambling in the new regulated market.

The full press release that includes statements from CEO Norbert Teufelberger may be found here.

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