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The second quarter of 2013 for Bwin.party was mired by lower margins in sports betting, the City reported on Wednesday.
Bwin is dealing with a turnover tax on sports betting in Germany, its largest market, and competition in the bingo sector in Britain and Italy, according to the City.
“While the revenue performance was down on last year, we remain on course to deliver the targeted €70m (£60m) of cost savings in 2013 with more to follow in 2014,” chief executive Norbert Teufelberger said in a statement.
“Sporting margins are an inherently unpredictable element of a bookmaking business,” said Numis analyst Ivor Jones. “Today’s downgrade is disappointing but we do not believe there is an underlying problem with Bwin.Party’s sports betting business.”
Shares in the firm closed down 6.4 per cent yesterday at 122.2p.
- Aaron Goldstein, Gambling911.com
