Profits down for gambling giant and Chief Executive Mitch Garber to step down next year.
Monday 10th March 2008
Online gambling group PartyGaming has released its financial results for last year revealing a 68 percent drop in annual profits due to the company's enforced exit from the American market in 2006.
The Gibraltar-based company stated that net income dropped to $41.6 million from 2006’s $128.4 million as 2007 was the first full year in which it had not enjoyed revenues from the US. It said that current trading had seen lower-than-expected growth in revenues but that underlying earnings were in line with its expectations following its decision to concentrate on acquiring bigger market shares in Europe and Asia to compensate for the loss of American revenues after the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) in October of 2006. Revenues from these continuing operations rose 41 percent with non-US earnings before tax from its poker operations, which generate almost two-thirds of its revenues, going up 60 percent to $62.4 million while earnings from its PartyCasino.com online casino almost tripled to $43.6 million with those from its PartyBets.com sportsbetting operation rising to $3.4 million compared with 2006’s loss of $1.6 million.
When discontinued operations are factored in, net revenues rose to $476 million from $325 million in 2006 with PartyGaming making a profit of $13.9 million compared with a loss of $83.4 million a year earlier.
The company also announced that Chief Executive Officer Mitch Garber would be leaving mid-2009 and returning to Canada after deciding not to renew his contract.
“There is never a good time to announce that you intend to leave a company but I personally take great pride in the fact that the company is delivering on its business strategy and is in great shape to exploit its full potential in the future,” said Garber.
“By notifying the board now of my longer term plans, together we can ensure that the hand-over to my successor can be achieved smoothly and without disruption.'
Online gambling group PartyGaming has released its financial results for last year revealing a 68 percent drop in annual profits due to the company's enforced exit from the American market in 2006.