Bwin.party, which offers sports betting, casino games, poker
and bingo to online customers, has opted to focus on a core of
around 10 European markets, rather than chasing business in more
than 30 countries.

The strategy, set out in March, is similar to one being
followed by betting exchange operator Betfair and
sacrifices short-term revenues to try to produce a more stable
business model.

However, bwin.party shares fell more than 5 percent in early
trade in London on Tuesday, with some analysts concerned at the
pace of decline in revenues which fell 17 percent to 180.2
million euros ($232 million) in the three months ended March.

Revenues were also hit by lower than expected activity in
poker and casino games after moving users to a new platform at
the end of last year.

CEO Norbert Teufelberger said revenues were unlikely to
start improving until the second half of the year, but was
confident the group would hit targets outlined in March.

“We guided the market that we expected revenues will decline
this year by up to 10 percent versus 2012,” he told reporters.

“Despite the first quarter revenue performance, we remain
comfortable with our guidance,” he added.

U.S. STATES OPEN UP

Bwin.party and other gambling groups are also looking to
expand in the United States where Nevada and New Jersey have led
the way in lifting some of the curbs on operators.

Teufelberger said bwin.party was preparing to apply for a
licence in New Jersey and the company said it was well placed to
take a market leading position as and when other states
liberalise their markets.

Bwin.party is also pressing for greater regulatory clarity
in Germany, its largest market, where a number of states are
trying to restrict the number of licences available and allow
operators to offer only sports betting.

Analyst Ivor Jones of Numis Securities said it was still
“early days” for the strategy set out only two months ago, but
saw benefits starting to flow later this year.

“What will remain is a business focused on improving
services to, and retention of, existing customers and expansion
into new markets, of which the U.S. is by far the most
important,” he said.

“We expect to see some preliminary evidence of success in
the third quarter of 2013.”

The Jockey Club, the owners of Cheltenham, have hit their investment target for the bond and will take applications until May 28 to mop up additional demand.

“To raise more than 15 million pounds and counting in just over three weeks from our first foray into consumer finance makes us incredibly proud,” Paul Fisher, group managing director of Jockey Club racecourses, said on Friday.

Cheltenham hosts a four-day festival every March that is one of the highlights of the jump racing calendar and always draws thousands of Irish fans who come over for it. It attracted total crowds of 235,000 this year, including Prince William and his pregnant wife Kate Middleton, despite the freezing weather.

By contrast, English race courses at Hereford and Folkestone were forced to close last year, showing the struggle that lower profile venues face to make money.

Around 1,500 people have bought the Cheltenham bonds, with an average investment of 11,000 pounds, the Jockey Club said.

The Jockey Club is planning to spend 45 million pounds on improvements for Cheltenham, adding a new grandstand and more luxurious royal box by 2016. The rest of the funding will come from bank financing, commercial deals, debenture sales and cash flow.

The five-year bond pays gross interest of 4.75 percent – compared with a return of between 2.50 and 3 percent for investments offered by high street banks in Britain.

Investors also get the chance to sign up for racing reward points, valued at an additional 3 percent annually, which they can cash in online to pay for tickets, hospitality packages or food and drink at the Jockey Club’s 15 British race courses.

The retail bond scheme, combining interest and redeemable points, is similar to one which retailer John Lewis used to raise more than 50 million pounds in 2011.

One downside for the racing bond investors is that they are not covered by a compensation scheme protecting those who put their money into more conventional bank products.

Around six million Britons went to races last year, making it the second most popular spectator sport after football.

(Editing by Sophie Walker)

The former England captain, 38, said on Thursday he was retiring from professional soccer after a brief encore in Europe with Qatari-owned Paris St Germain, the French champions.

A study by the Sunday Times newspaper last month estimated Beckham’s fortune at 165 million pounds ($253 million), not counting the sums earned by wife Victoria, a pop star turned fashion designer.

With his playing career winding down, Beckham has been striking new deals which have seen him take on more of an ambassadorial role, promoting soccer in China and encouraging people to play sports in a partnership with British pay TV company BSkyB.

His wealth has been built on a rare ability to strike a soccer ball and an unusual combination of celebrity and humility that has made him an adman’s dream.

“For ordinary people, Beckham is an aspirational brand,” said Simon Chadwick, professor of sports marketing at Coventry University in central England. “He comes across as a normal guy who has a stable family but has managed to combine it with glamour and a high profile career.”

Beckham made his name at Manchester United under manager Alex Ferguson who too retired from soccer last week. The floppy-haired young midfielder’s profile grew as the English Premier League acquired a huge global television audience.

His playing career took him to top European clubs Real Madrid and AC Milan. A five-year spell with LA Galaxy ensured that his fame spread across the Atlantic and helped build a fan base in North America.

LIFE AFTER SOCCER

Managed by the XIX Entertainment group that has British motor racing driver Lewis Hamilton and Olympic tennis champion Andy Murray on its books, Beckham has been carefully planning for life after soccer.

“It’s fair to say that Beckham has not been selling himself as a footballer for some time,” said Joel Seymour-Hyde, of sports marketing agency Octagon.

Beckham has capitalized on his film-star looks and athlete’s body to market underwear for Swedish fashion chain H&M and luxury watches for Swiss manufacturer Breitling.

There are signs too that the younger Beckhams are following in their parents’ footsteps on the catwalk and soccer pitch.

One of their sons, Romeo, got a job as a model for fashion chain Burberry last year aged only 10. Teenager Brooklyn Beckham has been pictured training with youth teams at Chelsea and PSG.

Some media reports have suggested Beckham senior might one day buy a stake in an MLS soccer team in the United States.

Seymour-Hyde said Beckham’s sporting career showed he had the strength of character and ambition to broaden his business horizons beyond working as a frontman for others.

“The ambassadorial stuff is relatively straightforward for him. He might eventually look for something more hands-on, a product or an event,” he said.

(Writing by Keith Weir; Editing by Andrew Heavens)

The former England captain, 38, said on Thursday he was retiring from professional soccer after a brief encore in Europe with Qatari-owned Paris St Germain, the French champions.

A study by the Sunday Times newspaper last month estimated Beckham’s fortune at 165 million pounds ($253 million), not counting the sums earned by wife Victoria, a pop star turned fashion designer.

With his playing career winding down, Beckham has been striking new deals which have seen him take on more of an ambassadorial role, promoting soccer in China and encouraging people to play sports in a partnership with British pay TV company BSkyB.

His wealth has been built on a rare ability to strike a soccer ball and an unusual combination of celebrity and humility that has made him an adman’s dream.

“For ordinary people, Beckham is an aspirational brand,” said Simon Chadwick, professor of sports marketing at Coventry University in central England. “He comes across as a normal guy who has a stable family but has managed to combine it with glamour and a high profile career.”

Beckham made his name at Manchester United under manager Alex Ferguson who too retired from soccer last week. The floppy-haired young midfielder’s profile grew as the English Premier League acquired a huge global television audience.

His playing career took him to top European clubs Real Madrid and AC Milan. A five-year spell with LA Galaxy ensured that his fame spread across the Atlantic and helped build a fan base in North America.

LIFE AFTER SOCCER

Managed by the XIX Entertainment group that has British motor racing driver Lewis Hamilton and Olympic tennis champion Andy Murray on its books, Beckham has been carefully planning for life after soccer.

“It’s fair to say that Beckham has not been selling himself as a footballer for some time,” said Joel Seymour-Hyde, of sports marketing agency Octagon.

Beckham has capitalised on his film-star looks and athlete’s body to market underwear for Swedish fashion chain H&M and luxury watches for Swiss manufacturer Breitling.

There are signs too that the younger Beckhams are following in their parents’ footsteps on the catwalk and soccer pitch.

One of their sons, Romeo, got a job as a model for fashion chain Burberry last year aged only 10. Teenager Brooklyn Beckham has been pictured training with youth teams at Chelsea and PSG.

Some media reports have suggested Beckham senior might one day buy a stake in an MLS soccer team in the United States.

Seymour-Hyde said Beckham’s sporting career showed he had the strength of character and ambition to broaden his business horizons beyond working as a frontman for others.

“The ambassadorial stuff is relatively straightforward for him. He might eventually look for something more hands-on, a product or an event,” he said.

Betfair shares fell 3.5 percent to 864 pence on Tuesday after the company said it had rejected an improved 950 pence a share bid proposal from CVC, the largest shareholder in Formula One motor racing.

The Betfair board had been reportedly seeking more than 10 pounds per share. The company, whose shares debuted in 2010 at 13 pounds, said attempts to negotiate a higher bid, after it rejected the proposal made on Sunday, foundered over strategy, without elaborating.

The failure of talks which began last month will increase pressure on recently installed Betfair CEO Breon Corcoran to deliver on a plan to cut costs and pull back from markets such as Greece and Germany where regulatory risk is too high or tax rates punitive.

“In our view, CVC were stretching the realms of realistically making a significant return on investment at the top level,” said analyst James Hollins of Investec, referring to the private equity firm’s improved takeover proposal.

“This leaves Betfair as a listed entity undertaking a turnaround (cost cutting, product development) in the public glare,” he added.

FLOAT EUPHORIA FADED

Betfair stock was trading at 700 pence before CVC said on April 15 it was considering a bid.

Since Betfair listed in 2010, the stock has tumbled. Analysts said the company had failed to clearly identify whether it was a technology or gambling business.

Betfair’s technology allows gamblers to bet online against one another at their own prices. It is also offering more conventional sports betting with odds set centrally to compete with rivals in an expanding yet highly competitive sector.

CVC’s strategy is normally to seek an agreed deal and leave existing management in place to deliver on strategy.

The firm, which bought British bookmaker William Hill (WMH.L: Quote, Profile, Research, Stock Buzz) in 1999 before selling it three years later, is often reluctant to pursue hostile bids to take companies private.

CVC and its consortium partners, investors Richard Koch and Antony Ball, had raised their bid proposal twice from the 880 pence per share mooted on April 22, first to 920 pence last Friday and then to 950 pence on Sunday, Betfair said.

As part of its defense, Betfair raised profit and revenue forecasts in a trading statement rushed out last week after its financial year ended in April.

Corcoran, hired from Irish bookmaker Paddy Power, has impressed analysts in his first few months in the job. Some said the CVC approach had highlighted the potential value of the company.

“In our view, that underlying value will be realized over time by the current strategy,” said Ivor Jones of Numis.

($1 = 0.6517 British pounds)

(Editing by Mark Potter)