French egaming losses improve by 50%
Reduction in overheads and marketing costs boost operating income despite overall market remaining negative
The regulated French egaming market saw some operators begin to make a profit in 2012 despite overall operating income remaining negative, according to the latest figures released by the regulator ARJEL.
Full year operating results for 2012 released by regulatory authority ARJEL showed the market across all verticals reduced its losses to 85m, a near 50% improvement compared to 183m the previous year.
The improvement in operating income was largely attributable to a reduction in overheads and marketing costs, which fell by 36m and 59m respectively, with poker and sports betting highlighted as significant contributors to the reductions.
Poker accounted for nearly half of the improvement in operating income with profit increasing by 53m from -89m in 2011 to -36m in 2012. Sports betting also showed progress over 2012 representing 37% of the operating income rise.
The ARJEL results follow the development of a less competitive poker market during 2012 after the withdrawal of a number of poker operators including 888 which ceased its dot.fr poker offering in December. Nine poker licences were also repealed throughout the year and only two new licences were issued.
In January the French regulator announced a rise of 3.9% year-on-year in gross gaming revenue with GGR for poker, sports and horse betting at 698m, up from 672m in 2011.