Bwin Shares Drop as PartyPoker Online Traffic Stagnates
Jan 11, 2014
PartyPoker relaunch doesn’t seem to have helped Bwin sales.
Online and mobile sports betting operator Bwin saw company shares drop by 3.4% on Tuesday, after broker Morgan Stanley announced that their PartyPoker website has shown no significant traffic growth. At the end of the business day, share price on the London Stock Exchange was at 120.7 p.
According to the latest industry data, the Bwin has been going through a rough period and has continued to lose market share over the past four months. Morgan Stanley commented: “The company does not have a steady base of high-quality income from any product or region.”
“We see a risk that lower marketing spend drives lower active customers, generating less revenue, with fewer funds available to invest in product development and marketing, and that this, in turn, leads to lower customer numbers,” the expert added.
Relaunch strategy fails
The online poker service was relaunched in September, when all signs were pointing towards a decrease in company sales.
Shortly after the software update, PartyPoker traffic started to improve. The gaming firm then reported a 3% increase in player traffic, as well as a promising rise in the amount spent by gamblers. However, according to industry analysts, Bwin’s products have not made much progress recently and this has caused share prices to drop.
In addition to the online poker service, the company offers virtual casino games, bingo and an online and mobile sportsbook.