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Partygaming trading in line ahead of relaunch

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Date: Friday 29 Aug 2008

LONDON (ShareCast) - Online gaming company Partygaming saw revenue growth in all areas, as it continues to come to terms with life after the passing of the US Unlawful Internet Gambling Enforcement Act on 13 October 2006.

Revenue on continuing activities in the first half of 2008 rose 17% to $254.8m, bang in line with market expectations, from $217.4m a year earlier.

Poker accounted for more than half of company revenue, rising 6% to $153.9m, due to higher yields.

Casino revenues surged 38% to $89.9m, driven by higher player numbers and yields. The small but fast growing bingo business is gaining traction, particularly in the UK, and saw revenues jump 82% to $2m. The sports betting book saw a strong increase in volume, pushing revenues up 36% to $9m.

Clean earnings before interest, tax, depreciation and amortisation from continuing activities rose to $64.9m from $36.9m. The figures exclude reorganisation income and costs and non-cash charges relating to share-based payments.

Trading since the end of the reporting period has been in line with management expectations except that the performance of the poker division has been slightly below expectations.

“Our poker business continues to grow but is being held back by the continued competition from those sites that accept players from the US,” said Jim Ryan, Partygaming’s chief executive officer.

In the 8 weeks to 25 August, average gross daily revenue has been $1.6m. Average gross daily revenue for poker has been $835,000 while for casino it has been $694,100. Bingo revenue has been running at $27,600 per day while the sports book’s average gross win per day has been $44,600.

The company has again refrained from declaring a dividend.

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