Bwin.Party Earnings Come in Higher Than ExpectedPublished on September 1st, 2011 12:53 am EST
Shares of Bwin.Party closed the day up 7.41% after the online gaming company reported their first half earnings.
Shares rose after Bwin.Party reported first half EBITDA of 81.9 million Euros, which was higher than analyst expectations of 75.7 million Euros.
Company officials pointed to troubles at Full Tilt Poker (formerly the second largest poker room in the world) as one of the reasons why the company was able to outperform analyst expectations in the first half. According to bwin.party co-CEO Norbert Teufelberger, an estimated 15% of Full Tilt Poker's client base have decided to make the move to Party Poker following Full Tilt Poker's closure in late June.
Also helping to propel bwin.party shares higher was an article in the Wall Street Journal that claimed that Bwin.party is "in the final stages of negotiations with a couple of US companies as it looks to secure a foothold in the country ahead of the hoped-for legalization of the US online gaming market." I have included a link to the article below.
Teufelberger estimates that there is a 30% chance that online poker legislation is passed in the United States this year.
A couple of the analysts who cover Bwin.party also point out that the company remains an acquisition target due to their depressed price. Bwin.party (BPTY on the London Stock Exchange) is currently trading at 118.15, down from its 52 week high of 299.00.
Source: WSJ.com - Bwin.party Readies US Partners for Legalized Online Gambling
Filed Under: Online Poker Rooms