PARTY GAMING FULL YEAR RESULTS RELEASED

13 March 2009

Poker disappoints in latest financial numbers

 

Party Gaming plc may have started out as a primarily online poker destination, but the performance of this sector of its wider group activities was disappointing last year, judged by the 2008 full year financials released this week. Poker net revenues declined by $21 million to $274 million (2007: $295 million).

Elsewhere the outlook was rosier, with online casino net revenues up $31,8 million to $176 million; the more recent sportsbetting venture up $1.9 million to $18 million and Bingo up $2.4 million to $4.9 million.

Total net revenues reached $472.9 million, down $3.1 million on the corresponding period in 2007 after a "non-recurring net revenue adjustment" of $18.2 million.

Other highlights included:

* Continuing Clean EBITDA up 29 percent to $144.2 million (2007: $111.7 million); total Clean EBITDA up 53 percent to $133.3 million (2007: $87.0 million)

* The addition of DM plc and CIRSA to the Party Gaming portfolio of business-to-business (‘B2B’) customers

* Cashflow from operations before working capital movements up 23 percent to $132.5 million (2007: $107.6 million) with group cash after client liabilities and progressive prize pools of $70.3 milion.

Commenting on the results, Jim Ryan, PartyGaming Chief Executive Officer, said:

“We are pleased to announce another strong set of results with Clean EBITDA from Continuing operations up 29 percent to $144.2 million. Our business model is both flexible and robust with a capacity to generate strong cashflow. Our brands and market position are strong and we have a healthy balance sheet with which to execute our business strategy. I believe that we are in an excellent position, not just to withstand the macroeconomic challenges that may lie ahead, but also to execute our strategy, create value for all of our stakeholders and achieve our long-term objective of becoming the world’s most valuable online gaming company.”

Regarding current trading he added:

“In the 5 weeks ended 4 February 2009, average gross daily revenue was $1 442 900. In poker, new player sign-ups increased to an average of 1 494 per day, and there were on average 51 000 active players per day generating average gross daily poker revenue of $756 700. In casino, gross revenue was $597 200 per day. In sports betting gross win per day was $75 700 and in bingo, average gross daily revenue was $13 200.

In the 4 weeks ended 4 March 2009, average gross daily revenue was $1 536 200. In poker, new player sign-ups averaged 1 550 per day and there were on average 51 100 active players per day, generating average gross daily revenue of $738 500. In casino, average gross daily revenue was $662 500, in sports betting, average gross win per day was $123 000 while in bingo it was $12 200.

“The Group has continued to make good progress in the first few weeks of 2009 despite the pressures of a highly competitive market and substantial year-on-year currency movements.”

Ryan later told the UK newspaper The Daily Telegraph that the company was making 'good progress' in its talks with the New York U.S. Attorney's Office over a settlement that would draw a line under its previous acceptance of so-called 'illegal' bets from American citizens.

The Party Gaming chief dismissed fears that Party Gaming had been disadvantaged in the talks by the decision of one of its founders, Anurag Dikshit, to plead guilty to breaking U.S. laws over online betting. "His position is entirely personal," said Ryan, adding: "We believe there will not be any criminal plea against the company or any of its former directors."

Online Casino News Courtesy of Infopowa

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