Bwin reports Q1 results

15 May 2007

VIENNA, Austria -- (PRESS RELEASE) --

- Significant Improvement of Results for bwin - Now World's Biggest Publicly Listed Online Gaming Provider

- Gross Gaming Revenues of EUR 89.4 Million (Q1 2006: EUR 71.3 Million Excl. US Operations)

- Gross Revenue From Sports Betting EUR 50.1 Million (Q1 2006: EUR 39.2 Million); Sports Betting Margin of 9.5 per cent

- 729,000 Active and 182,000 New Active Real-Money Customers

- EBITDA of EUR 23.2 Million (Q1 2006: EUR 14.8 Million)

- Result After Tax EUR 9.9 Million (Q1 2006: EUR 1.5 Million)

For the first time ever in Q1 2007 now ended, bwin was able to achieve the goal it had pursued since 2004 of becoming the Number One world-wide, in terms of both the number of active customers and gross and net gaming revenues. At the same time the reorientation of the Company's strategy announced two quarters ago has been successfully implemented, and significantly better results reported.

In Q1 2007 bwin generated gross gaming revenues (sum of gross gaming revenues from betting operations, poker, casino and games) of EUR 89.4 million. Gross gaming revenues from sports betting rose by 27.8 per cent compared to Q1 2006 to EUR 50.1 million, with a sports betting margin of 9.5 per cent.

Although the number of active customers in Q1 2007 rose by 10.7 per cent compared to Q1 2006, from 658,000 (excl. US operations) to 729,000, this indicator fell by 6.1 per cent compared to Q4 2006 (776,000 excl. US operations). A total of 182,000 customers were active for the first time in Q1 2007 (Q1 2006: 259,000 or Q4 2006: 213,000, excl. US operations in each case). The decline in new active customers and less effective churn management by comparison were attributable mainly to a drastic reduction in the marketing budget. Various inertia effects, particularly in the case of sport sponsoring, produced an unfavourable marketing mix in Q1 2007. This may persist for the next three quarters, and can only be completely optimized during the course of the coming year. In the short term, the Company could therefore face weaknesses in the activation of customers and less dynamic growth of new customers. Apart from this, at the beginning of March 2007 the Company also temporarily suspended its offering of online gaming products in Turkey.

As a result of the strategic reorientation already announced, operating expenses of EUR 67.1 million in Q1 2007 were down by comparison to both Q1 2006 (EUR 75.3 million) and Q4 2006 (EUR 87.1 million), making a significant contribution to the improved results.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose to EUR 23.2 million, an increase of 56.9 per cent compared to Q1 2006 (EUR 14.8 million). Operating income rose from EUR 1.5 million in Q1 2006 to EUR 12.3 million in Q1 2007. A profit after tax and third-party interests of EUR 9.9 million was reported for Q1 2007, as compared to a profit of EUR 1.5 million for the comparable period the previous year.

Bwin reports Q1 results is republished from iGamingAffiliatePrograms.com.

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	Bwin reports Q1 results 15 May 2007 <a href='https://ad.casinocity.com/adclick.php?n=a21efcd1'><img src='https://ad.casinocity.com/adview.php?what=-site:vendors/width:250/RON&n=a21efcd1' border='0' alt='' /></a> VIENNA, Austria -- (PRESS RELEASE) -- - Significant Improvement of Results for bwin - Now World's Biggest Publicly Listed Online Gaming Provider - Gross Gaming Revenues of EUR 89.4 Million (Q1 2006: EUR 71.3 Million Excl. US Operations) - Gross Revenue From Sports Betting EUR 50.1 Million (Q1 2006: EUR 39.2 Million); Sports Betting Margin of 9.5 per cent - 729,000 Active and 182,000 New Active Real-Money Customers - EBITDA of EUR 23.2 Million (Q1 2006: EUR 14.8 Million) - Result After Tax EUR 9.9 Million (Q1 2006: EUR 1.5 Million) For the first time ever in Q1 2007 now ended, bwin was able to achieve the goal it had pursued since 2004 of becoming the Number One world-wide, in terms of both the number of active customers and gross and net gaming revenues. At the same time the reorientation of the Company's strategy announced two quarters ago has been successfully implemented, and significantly better results reported. In Q1 2007 bwin generated gross gaming revenues (sum of gross gaming revenues from betting operations, poker, casino and games) of EUR 89.4 million. Gross gaming revenues from sports betting rose by 27.8 per cent compared to Q1 2006 to EUR 50.1 million, with a sports betting margin of 9.5 per cent. Although the number of active customers in Q1 2007 rose by 10.7 per cent compared to Q1 2006, from 658,000 (excl. US operations) to 729,000, this indicator fell by 6.1 per cent compared to Q4 2006 (776,000 excl. US operations). A total of 182,000 customers were active for the first time in Q1 2007 (Q1 2006: 259,000 or Q4 2006: 213,000, excl. US operations in each case). The decline in new active customers and less effective churn management by comparison were attributable mainly to a drastic reduction in the marketing budget. Various inertia effects, particularly in the case of sport sponsoring, produced an unfavourable marketing mix in Q1 2007. This may persist for the next three quarters, and can only be completely optimized during the course of the coming year. In the short term, the Company could therefore face weaknesses in the activation of customers and less dynamic growth of new customers. Apart from this, at the beginning of March 2007 the Company also temporarily suspended its offering of online gaming products in Turkey. As a result of the strategic reorientation already announced, operating expenses of EUR 67.1 million in Q1 2007 were down by comparison to both Q1 2006 (EUR 75.3 million) and Q4 2006 (EUR 87.1 million), making a significant contribution to the improved results. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose to EUR 23.2 million, an increase of 56.9 per cent compared to Q1 2006 (EUR 14.8 million). Operating income rose from EUR 1.5 million in Q1 2006 to EUR 12.3 million in Q1 2007. A profit after tax and third-party interests of EUR 9.9 million was reported for Q1 2007, as compared to a profit of EUR 1.5 million for the comparable period the previous year. Bwin reports Q1 results is republished from iGamingAffiliatePrograms.com.