Bwin.Party is one of the world's largest gaming companies and especially on the sports betting front they are huge. Today the company announced that due to pressure from an activist shareholder, they have decided to cut an additional €10 million of costs to boost their annual performance.
By doing so they are closer to reaching their targets for 2014, which would boost shareholder value as the company announced they wanted to do without having to break-up parts of the company or sell it. Bwin.Party announced today that their betting perfomance had been strong due to the world cup in Brazil, but that their casino and poker part of the business is weak and lacks performance.
"We are taking steps to improve operating performance, simplify decision-making, reduce complexity and costs and, as a result, remain confident about the full-year outlook," CEO of Bwin.Party, Norbert Teufelberger said to Reuters.
"The 2014 World Cup in Brazil has been a resounding success in terms of recruiting new customers and generating increased revenues for the Group on the back of increased but effective marketing investment," A trading statement from Bwin.Party stated.
Jason Ader from Spring Owel Vehicle has been an active critic of the way that Bwin.Party has been run by the management since their merger in 2010 and with a 5% stake in the company and a place on the board he is a powerful man in terms of demanding change in the company.
