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THIRD QUARTER RESULTS RELEASED BY PARTY GAMING
Online poker revenues continue decline
Online gaming group, Party Gaming plc, Friday posted a 9 percent rise in third quarter revenue and said it is confident about the full year outlook.
Still, the total revenue increase was tempered by a fall in poker sales which are under pressure from U.S. poker websites like Full Tilt Poker and PokerStars which are expanding aggressively in European markets where PartyGaming operates.
In the three months to September 30, total revenue rose to Euro 85.3 million from Euro 78.3 million a year earlier.
Third quarter highlights included:
* Group revenue up 9 percent to Euro 85.3 million (2009: Euro 78.3 million) with growth in all products except poker
* Casino revenue up 2 percent to Euro 34.9 million to Euro 34.9 million (2009: Euro 34.2 million), driven by content and jackpot improvements on PartyCasino
* Poker revenue down 5 percent to Euro 29.6 million (2009: Euro 31.3 million) with continued pressure from US-facing sites partially mitigated by growth in newly regulated markets
* Bingo revenue up 36 percent to Euro 13.1 million (2009: Euro 9.6 million) driven by the acquisition of Cashcade
* Sports Betting revenue up 86 percent to Euro 5.4 million (2009: Euro 2.9 million) on the back of both increased turnover and gross win margins
* Current trading improving on the back of seasonality, in-line with expectations
* Bwin merger proceeding as planned; Simon Duffy confirmed as Chairman-elect of the merged company
Commenting on today’s announcement, Jim Ryan, chief executive officer, said:
“Total revenue was up by 9 percent year-on-year with growth in all products except poker, despite the impact of having closed our French casino business at the end of June 2010. Excluding French casino, total revenue would have been up by 12 percent year-on-year, driven by casino growth in other markets, acquisitions and a strong performance in sports betting.
“We have been encouraged by the strong start from our nascent French poker network that went live on 1 July 2010. A strong performance by PartyPoker in France has been further boosted by the launch of PMU’s poker business in France as well as services for AB Groupe and Aviation Club de France.
“I am also pleased to report that the proposed merger with bwin remains on track to complete at the end of Quarter 1 2011, subject to regulatory and shareholder approvals and I am delighted that Simon Duffy has agreed to become Chairman of the Enlarged Group on completion, as detailed in a separate press release issued today.”
On current trading he added:
“In respect of current trading since the end of September, we have begun to see the normal seasonal upturn, in-line with the Board’s expectations, and we remain confident about the full year outlook.”
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