Bwin.party hit by Europe regulation Shares in Bwin.party fell more than 13 per cent on Friday, after the online gaming group said increasing regulation across Europe had triggered a fall in revenues. Problems ranging from websites being blocked in Greece and Belgium to a new tax on sports betting in Germany hindered the company's half-year performance. Bwin.party warned investors that full-year revenues would be up to 17 per cent lower than last year. Norbert Teufelberger, chief executive, admitted he was "disappointed" with the performance. "It would be a bit cocky and arrogant of me to say that I am happy and not disappointed with a double-digit revenue decline," Mr Teufelberger said. Earnings before interest, tax, depreciation and amortisation at the group's continuing businesses fell 34 per cent year on year to €60.7m. Revenues for the first six months of 2013 fell 16 per cent year on year to €342.5m, with analysts forecasting that this would hit the group's profitability hard. James Hollins, an analyst at Investec, said: "In a highly geared business, the guided revenue shortfall is expected to drop through to the profit line." The poor performance continued into July and August, with bingo recording a 20 per cent year on year drop in average daily net revenue. The group's poker division recorded a 37 per cent drop in average daily net revenue for the eight weeks to 25 August. Mr Teufelberger said: "The first half was always going to be a challenge as we set about optimising the shape and size of our business, with a much greater focus on nationally regulated and to-be-regulated markets." Bwin.party has focused its business on regulated markets to avoid some of the regulatory shocks that have hit the online gambling industry in recent years. The most recent example came in Greece, when local internet service providers unexpectedly started blocking gambling websites earlier this year. The group said it was on track to meet cost savings of €70m this year and outlined €20m further savings in 2014. Losses before tax at a statutory level narrowed from €15.3m to €9.1m, due to lower amortisation costs and last year's results being affected by a one-off tax bill from the Spanish government. The group said its attempts to launch in New Jersey were on track, which offered some succour to investors. "We are making a lot of progress there," said Mr Teufelberger. Ultimately, it will depend on the regulator whether they will be ready to issue licences on time. Diluted loss per share improved from 2.5c to 1.3c. The group increased its dividend 5 per cent to 1.8p, and also announced a €10m share buy-back. Shares in the FTSE 250 company fell 13.6 per cent to 110p on Friday.