Leading online gaming operator revealed that it expects to post total revenues for the second quarter of 2010 that are 28 percent higher than for the same period in 2009.
Wednesday 14th July 2010
Leading listed online gaming operator PartyGaming has released an update on its financial performance showing total revenues for the second quarter of 2010 should rise 28 percent year-on-year while declining two percent quarter-on-quarter.
PartyGaming stated that the ‘relatively unexpected results’ from the 2010 FIFA World Cup had a favourable impact on its sportsbetting margins for the period but had adversely impacted to a greater than expected extent on its other product verticals.
The firm revealed that the year-on-year rise in its revenues had been ‘primarily due to the acquisitions of CashCade and the World Poker Tour and continued strong growth in casino’ while its online poker operations had been especially hard hit over the quarter with the number of daily average players falling by eight to nine percent versus the first quarter. Coupled with lower yields due to the reduced frequency of play on the back of both seasonality and the World Cup, PartyGaming announced that it expects poker revenues to have decreased between eleven and 13 percent quarter-on-quarter.
“We are pleased with the relatively robust performance of our business compared to many other consumer-facing businesses in what remains a challenging economic environment,” said Jim Ryan, Chief Executive Officer for the Gibraltar-based firm.
“Overall, the group has performed in-line with expectations even though the adverse impact of the World Cup on our non-sportsbetting verticals was slightly greater than expected.
“We have made great progress in securing partners for our poker network in France with PMU, AB Groupe and Aviation Club De France already in place. We expect to add another significant partner to our French network in the near future. The early signs from this important new market are encouraging.
“The World Poker Tour is performing in-line with our expectations and we believe that this asset, combined with the strength of the PartyPoker brand and the resolution of our US legacy issues, ensures that we are well-positioned should online gaming become regulated in the US. In this respect, discussions are progressing well with a number of potential US-based gaming partners.
“While progress on consolidating the online gaming industry has been slower than expected, we remain committed to playing an active role and are continuing to pursue opportunities with a number of parties.
“Despite the challenges presented by the prevailing macroeconomic and competitive environments, we are on track with the execution of our stated strategy. As governments around the world look to adopt regulatory frameworks, given the strength of our brands, our scale, excellent business-to-consumer and business-to-business products, we remain confident about the group’s prospects.”
