Industry News

bwin.party Poker Revenue Stable

bwin.party digital entertainment plc has announced third quarter poker revenue of €52.3 million, up three percent on the second quarter of 2011 and down only marginally against the £52.5 million recorded in the third quarter of 2010.

This is a welcome rebound from August when the company announced first half poker revenue in 2011 fell 11 percent to £104.9 million from £116.5 million in the first half of 2010.

Active player days fell 10 percent in the third quarter to 8.5 million compared to 9.4 million the previous year. The company said this reflected, “…the challenging competitive conditions in global dotcom poker, the seasonal decline in player activity was partly mitigated by a strong performance in Italy and the interim closure of Full Tilt on 29 June.”

Yield per active player increased 11 percent compared to the third quarter of 2010 to €6.2.

The company also said in its interim report, “Our position in both Italy and France remains strong with an estimated combined market share of over 15% in both markets.

“Taken together, the net impact of these movements was that average daily poker revenue increased by 2% versus the previous quarter to €568,500 which was marginally below that achieved in the same period in 2010 (2010: €570,700).”

Commenting on its strategic approach to the potential opening of U.S. markets, the company said, “On 1 November 2011 the Group announced its strategy with regards to the US real money online poker market should suitable legislation be enacted at either a federal or state level.

“Central to that strategy is the execution of an extensive collaboration with two of the leading land-based gaming operators in the US: MGM Resorts International (‘MGM’) and Boyd Gaming Corporation (‘Boyd’). The Group is also planning to commence a preliminary suitability review process with the Nevada Gaming Control Board.” ♠

Pocket Kings Makes 180 Redundant

Up to 180 staff at Full Tilt’s Dublin-based subsidiary, Pocket Kings, were made redundant during late October.

Employees said they had been offered statutory redundancy. They also said the company’s reason given for the lay-offs was that it was restructuring as a result of the loss of U.S. and European revenues.

In September, news broke that the company would be making up to 250 employees redundant following a four-week consultation period. That month also saw regulator, the Alderney Gambling Control Commission, revoke Full Tilt’s licence, banning it from continuing to trade.

This is a long way off from the news in February that the company was adding more jobs in Dublin and that the growth was “estimated to continue at this strong rate for all of 2011 and beyond”. Pocket Kings provides software, information technology, management and customer support services for Full Tilt from its Dublin base. ♠

Playtech Poker Revenue Down Two Percent

Israeli-based online poker operator, Playtech announced poker revenue down two percent in the third quarter of 2011 to €5.6 million from €5.7 million a year earlier.

Playtech’s poker platform, iPoker, hosts online poker sites such as Titan, William Hill, and Paddy Power.

The €5.6 million third quarter revenue was up 13 percent on the previous quarter.

Chief executive Mor Weizer said, “Playtech’s diverse revenue streams have delivered a strong performance over the traditionally quieter third quarter thanks to the launch of Italian cash poker and casino products, improvements in poker revenues following the change in the market structure after the suspension of one of the largest poker operators, and the continued strength of bingo and Videobet, where the UK roll-out has now completed.”

In the nine months to end September 2011 Playtech’s poker revenue was down 24 percent to €16.3 million from €21.5 million in the first nine months of 2010. ♠

Unibet Poker Revenue Down 50 Percent

Unibet Poker continues to see its poker revenue (reported as gross winning revenue) decline as it slumped 21 percent in the third quarter of 2011 to £3.11 million compared to £3.95 million a year earlier.

The position for the year to date (January to December) looked even more grim with revenue down over 50 percent to £10.1 million from £20.2 million in the same period in 2010 – the company pulled out of France last year.

Poker now makes up just eight percent of Unibet’s gross win revenue compared to 17 percent in the first quarter of 2010.

However the company still appears upbeat about poker saying, “During the third quarter a strong global promotion schedule geared at increasing engagement and number of betting days drove activity with the efficient, effective Gold Rush promotion proving a success which will be repeated during the fourth quarter, and adapted for the annual seasonal Halloween activity.

“Also, the ‘Pocket Card Manager’ was launched whereby players have the facility to preselect which pocket cards they want to play or fold.

“The Unibet Open continues its success as one of Europe’s leading poker tours with the new season continuing in Dublin, attracting many Unibet customers from all over Europe and continued strong media coverage. The Unibet Open Online continues, with two further online events scheduled for the fourth quarter.” ♠

888 Poker Revenue Rebounds

888 Holdings, owner and operator of 888 Poker, saw business to consumer (B2C) poker revenue up 120 percent to US$18 million in the third quarter of 2011 from just $8 million in the same period of 2010.

The company said the jump was driven by its new Poker 6 platform.

The number of active B2C customers playing poker in the third quarter of 2011 was 307,000, a jump of 166 percent compared to Q3 2010.

The only blip on an otherwise rosy quarterly financial report was quarterly revenue per active B2C poker customer which dipped to $59 — 17 percent lower than a year earlier.

In the nine months of 2011 to end September, B2C poker revenue has expanded 51 percent to $42 million compared to $28 million in the same period of 2010.

The first six months of the year saw a 22 percent uplift in poker revenue. ♠

Betsson Poker Profit Falls 12 Percent

Gross poker profit at Betsson Plc, the Swedish online gaming operator, fell 12 percent to SEK21.5 million (€2.38 million) in the third quarter of 2011 from SEK24.4 million a year earlier.

Poker now makes up just 5.5 percent of Betsson’s total revenue, down from 16 percent in the first quarter of 2009.

While poker fell, year-on-year, it rose 26 percent on the previous quarter when it was SEK17.1 million.

Overall Betsson, which also operates online sportsbook and casino businesses, saw gross profit up 29 percent to SEK389.1 million (€43 million) in the third quarter from SEK275.6 million a year earlier. ♠

William Hill Poker Revenue Up 14 Percent

William Hill Online, the joint venture with Playtech which operates the company’s poker business, did not give a figure for third quarter poker revenue but the first half of 2011 saw poker revenues up 11 percent to £11.8 million from £10.6 million a year earlier.

William Hill CEO Ralph Topping said of the third quarter performance, “Pleasingly, Online net revenue growth accelerated in the quarter… The Q3 margin is broadly in line with our long-term average for this quarter… Accordingly, Group profits are lower year-on-year, primarily as a result of this and the planned significant increase in Online investment.” ♠

Microgaming Player Values Up 15 Percent

The new Microgaming Network Management Board (NMB) met for the first time in London in early November and the success of the project is “already tangible” according to the network with player values up 15 percent so far in 2011.

The NMB comprises representatives from Microgaming and the main operators on the network. They share votes on key decisions, with proportional shares determined by a formula agreed by the voting members of the NMB. ♠