UPDATE 1-Bwin.Party outlines turnaround plan, more cost cuts

Fri Aug 29, 2014 4:40am EDT
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* Company has been criticised by U.S. investor

* Plans additional 15 mln euros of cost cuts in 2015

* Could "play active role" in industry consolidation (Adds CEO comment, shares, industry context)

By Keith Weir

LONDON, Aug 29 (Reuters) - Online gambling company Bwin.Party set out plans on Friday to cut costs further and improve the performance of a business that has suffered a series of setbacks since its creation three years ago.

Under pressure from a new U.S. activist shareholder, Bwin said it would be prepared to play a part in industry consolidation, comments that could revive speculation over a possible break-up of the company.

Jason Ader, whose Spring Owl vehicle bought a 5 percent stake in Bwin.Party this year, has criticised the way the company has been run since its formation. Shares in the company are down by about a third this year and its market value has fallen to about 660 million pounds ($1.1 billion).

Chief Executive Norbert Teufelberger said that performance had been disappointing. He conceded that some of the company's problems were home grown, but added that it has also been hit by a tougher regulatory environment in a number of markets.

Bwin.Party said it would cut costs by a further 15 million euros ($19.8 million) in 2015, on top of 30 million euros that it will save this year.   Continued...