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bwin.party digital (BPTY)

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Tuesday 05 January, 2016

bwin.party digital

Pre-close trading update

RNS Number : 7974K
bwin.party digital entertainment
05 January 2016
 

 

 

5 January 2016

 

 

bwin.party digital entertainment plc

('bwin.party' or the 'Company' and, together with its subsidiaries, the 'Group')

 

 

Pre-close trading update

 

Key points

 

Ø Q4 net revenue up 5% on last year driven by sports betting and casino, with strong growth in mobile driven by further product enhancements. Excluding the impact of EU VAT, the underlying increase in net revenue was 8%.

 

Ø Continued significant progress on cost savings

 

Ø One-off receipt of circa €10m expected to be received in Q2 2016 through Kalixa on sale of Visa Europe to Visa Inc.

 

Ø Recommended offer from GVC: completion expected on 1 February 2016, subject to the prior approval of the Court of Gibraltar

 

Ø Outlook: underlying fundamentals remain strong with further product enhancements, the Euro championship and the full year benefit of cost savings expected to drive growth in 2016

 

 

Trading update

Net revenue in Q4 grew by 5% versus the same period in 2014, driven by sports betting and casino that enjoyed strong performances, particularly through mobile channels.  Excluding the impact of EU VAT that was introduced in certain markets on 1 January 2015, the increase in net revenue would have been 8%. Additionally, significant progress continued to be made on achieving further cost savings.

 

 

Sale of Visa Europe to Visa Inc.

On 2 November 2015 it was announced that Visa Inc. had agreed to acquire Visa Europe in a transaction valued at €21.2 billion (including an earn-out of up to €4.7 billion).  As one of Visa Europe's Principal Members, Kalixa Payments Group stands to receive a share of the upfront consideration.  While the exact amount to be received will only be confirmed when the transaction completes (expected during the second quarter of 2016), the Group has been informed by Visa Inc. that this is expected to be approximately €10m.  Kalixa will also be eligible to receive a share of the earn-out if it remains a Principal Member (or equivalent) of Visa for the duration of the four-year earn-out period.

 

 

Recommended offer from GVC Holdings PLC

Each of the resolutions was approved by shareholders at the extraordinary general meeting of bwin.party shareholders held on 15th December 2015.  Completion is expected to take place on 1 February 2016, subject to the prior approval of the Court in Gibraltar. Admission of the new GVC shares to trading on the London Stock Exchange is expected to take place on or around 8.00 a.m. on 2 February 2016.

 

Outlook

Based upon recent trading performance, the forthcoming Euro Championship in 2016 and the full year benefit of cost savings already achieved in 2015, the Board believes that the Group's prospects are strong, and these will be enhanced yet further by the proposed combination with GVC Holdings PLC.

 

Contacts:

bwin.party digital entertainment plc 
 

Investors
Peter Reynolds             +44 (0) 20 7337 0177

 

Media
Jay Dossetter                +44 (0) 20 7337 0134


This information is provided by RNS
The company news service from the London Stock Exchange
 
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