euro adhoc: bwin Interactive Entertainment AG / quarterly or semiannual financial statement / bwin Interactive Entertainment AG financial year 2006

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annual report

19.04.2007

Successful start of communicated strategic change

Impact on earnings in Q1 2007 assuming similar legal framework

Gross gaming revenues of EUR 381.8 million; up 165.2%

Nearly 2.1 million active and 1.3 million new active Real Money
customers

EBITDA (before restructuring charges) minus EUR 3.2 million after
investment phase (2005: EUR 15.1 million)

Result after tax of minus EUR 539.6 million (2005: EUR 6.4 million)
due to impairment (EUR 516.6 million)

As already communicated, bwin changed its strategic approach with
effect from the beginning of Q4 2006 in reaction to the legislative
developments in the USA, and in view of the resistance mounted by the
monopolies in several European countries. Concentrating on its core
business (sports betting and poker) and on established markets in
Europe (the EU and EFTA region) has reinforced bwin’s standing as the
leading continental European online gaming operator. An efficiency
enhancement programme embracing all areas of the Company has been
initiated. The resulting savings should be reflected in the results
with effect from Q1 2007, assuming a similar legal framework.

In 2006, bwin reported gross gaming revenues (betting stakes less
customer winnings) of EUR 381.8 million (2005: EUR 144.0 million)
from its sports betting, poker, casino and games operations.
Excluding the US business, bwin generated gross gaming revenues in
the amount of EUR 308.5 million. This figure reflects a continued
increase in new customers, driven by a growing interest in online
gaming products in continental Europe, and by a successful marketing
strategy, particularly the Soccer World Cup campaign. It is also the
result of the Company’s expansion into the poker market, with the
inclusion of results from the initial consolidation of bwin Games AB
from 1 January 2006 influencing both revenues and costs.

In the financial year under review, bwin is once again pleased to
report strong growth in its customer base. Including bwin Games and
US customers, some 2.1 million customers were active in 2006, an
increase of 189.7% compared to the same period of the previous year.
Of these, 1.3 million (or 1.2 million, excluding the US) were active
for the first time.

Given that 2006 was a year of investment, and given the US
legislative changes in Q4 2006, earnings before interest, taxes,
depreciation and amortization were minus EUR 7.0 million, including
restructuring of overheads and related costs amounting to
approximately EUR 3.8 million. This compares to EUR 15.1 million in
FY 2005.

Following the cessation of the US business, bwin took an impairment
charge of EUR 515.1 million due to the non-cash depreciation of the
customer base and goodwill as a result of the bwin Games acquisition.
Due to regulatory changes in Turkey, resulting in the temporary
withdrawal of bwin’s range of online gaming products in Q1 2007, bwin
completely impaired the Turkish customer base by EUR 1.6 million in
Q4 2006. As a consequence, the operating result for 2006 declined to
minus EUR 587.5 million compared to EUR 7.7 million in 2005. A loss
after tax and minority interests of EUR 539.6 million was reported
for financial year 2006, following a profit of EUR 6.4 million the
previous year.

The complete report on the fourth quarter and financial year 2006 can
be found online on the bwin investor relations website at
www.bwin.ag, where it can also be downloaded in PDF format.

end of announcement euro adhoc 19.04.2007 08:00:00
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ots Originaltext: bwin Interactive Entertainment AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:
Investors:
Konrad Sveceny, Investor Relations
bwin Interactive Entertainment AG
Boersegasse 11, 1010 Vienna, Austria
Tel.: +43 (0) 50 858-20017
E-mail:investorrelations@bwin.ag
http://www.bwin.ag

Press:
Karin Klein, Corporate Communications
bwin Interactive Entertainment AG
Boersegasse 11, 1010 Vienna, Austria
Tel.: +43 (0) 50 858-20008
E-mail:press@bwin.org
http://www.bwin.ag

Branche: Casinos & Gambling
ISIN: AT0000767553
WKN: 936172
Index: ATX, Prime.market
Börsen: Wiener Börse AG / official dealing


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