BWIN Q3 net loss narrows on reduced marketing spend UPDATE

BWIN Q3 net loss narrows on reduced marketing spend UPDATE

	Published : Thu, 15 Nov 2007 08:55 By : Agencies Print this Story

(updating to add outlook on sports betting margins)

FRANKFURT (Thomson Financial) - BWIN Interactive Entertainment AG said its third-quarter net loss narrowed to 5.12 mln eur from a year-earlier loss of 22.6 mln after the company spent 44 pct less on marketing.

Gross gaming revenue for the third quarter declined to 86.2 mln eur from 97.2 mln a year earlier, the online gaming provider said. Gross gaming revenue comprises revenue from betting operations, poker, casino and games.

BWIN said the year-earlier figures were adjusted to exclude the contributions made by the company's US operations, which were terminated after legislative changes in the country.

The number of active customers in the third quarter dropped 27 pct from the year-earlier period to 827,000, while the figure of 192,000 customers active for the first time during the quarter was down 44 pct from the third quarter of last year, which was boosted by the World Cup football tournament.

'However, a rising trend has been observed for both active and new active customers since the third quarter,' the company said in a statement.

In the first nine months of the year, BWIN's net loss narrowed to 0.8 mln eur from 49.8 mln in the year-earlier period, with gross gaming revenue, excluding Turkey, rising to 248.9 mln eur, 20 pct more than in 2006.

BWIN earlier this year said following the introduction of a law prohibiting online gaming in Turkey, it withdrew it online gaming products from the country.

The company at the time said it plans to seek a license at a later date.

Looking ahead, BWIN said it sees a 'positive trend' for sports betting margins, which in the third quarter improved to 8.5 pct from 7.2 pct in the second quarter. For the full year, the company expects a margin of 8-10 pct.

maria.sheahan@thomson.com

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