Partygaming reports lower revenues

The giant Gibraltar-based online gambling group PartyGaming plc has posted its full year 2009 numbers, recording lower revenues and some losses in a tough economic period.
Highlights of the report include:
* Total revenue down at $446.2 million (2008: $472.9 million) with a softer performance in poker mitigated by growth in all other verticals
* Poker revenue dived to $196.7 million (2008 FY: $274 million)
* Casino revenue reached $196.2 million, up from last year’ $175 million
* Bingo was well up at $32.8 million (FY 2008: $5.9 million)
* Sports betting revenues were up at $19 million (FY 2008: $18 million)
* Continuing Clean EBITDA of $135 million (2008: $144.2 million); slightly ahead of market expectations
The company results include provision for $15 million paid to the US authorities last year as part of a $105 million non-prosecution agreement in respect of activities in the United States prior to the passage of the UIGEA in 2006 .This conributed to an after-tax loss of $26.5 million (2008 FY profit was $66.9 million).
Among the company’s achievements last year was the acquisition of Cashcade and the World Poker Tour.
Net cashflow from continuing operations was lower at $120.5 million (2008: $125.2 million) with net cash at the year end of $164.7 million (2008: $201.4 million)
Chief executive officer Jim Ryan said in a supporting statement: “We delivered a solid performance during 2009 which demonstrated the resilience of a business model that continues to generate strong cashflow, even in the most challenging of circumstances.
“Leading brands and market position, supported by a strong balance sheet underpin our business strategy.  With some acquisitions and major B2B deals already under our belt, we plan to do more in 2010 and I believe we are on course to meet our objective of becoming the world’s most valuable online gaming company.”
Regarding current trading he added:
“The Group has continued to perform in-line with the Board’s expectations.  In the two month period ended 28 February 2010, average gross daily revenue was $2 074 000 (Q4 09: $2 090 800) reflecting a 1% reduction from the fourth quarter of 2009 that included an exceptionally strong performance in casino.
“All other verticals increased average gross daily revenue from the previous quarter.  In poker, new player sign-ups increased to an average of 1 700 per day (Q4 09: 1 400), and there were on average 55 900 active players per day (Q4 09: 51 700) generating average gross daily poker revenue of $709 000 (Q4 09: $690 000). In casino, average gross daily revenue was $775 600 (Q4 09: $854 800).  In bingo, average gross daily revenue was $493 800 (Q4 09: $452 600) and in sports betting, average gross daily revenue was $95 600 (Q4 09: $93 400).
“Whilst the macroeconomic environment remains uncertain, we remain focused on executing our stated strategy and are confident about the Group’s prospects.”

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