Good growth at Party Gaming

The UK online gambling group Party Gaming plc has posted its 2010 full year results, showcasing:
* Total revenue up 15 percent to Euro 357.3 million (2009: Euro 310.1 million) with a softer performance in poker mitigated by strong growth in all other verticals
* Continuing clean EBITDA up 7 percent to Euro 100.4 million (2009: Euro 93.8 million), slightly ahead of market expectations
* Net cash flow from continuing operations of Euro 86.3 million (2009: Euro 86.3 million)
* Net cash at the year end of Euro 156.7 million (2009: Euro 114.5 million)
* Merger with Bwin on track to complete and new shares in bwin.party digital entertainment plc to begin trading on 31 March 2011.
* Current trading in-line with Board’s expectations; gross revenue per day of Euro 1,431,800 (Q4/2010: Euro 1,425,400)
* Good progress in newly regulated markets; more regulation in Italy and Denmark expected during 2011.
The results broken down by activity revenue show:
Poker down at Euro 124.8 million (2009 FY- Euro 136.8 million)
Casino up at Euro 151.4 million (2009 FY – 136.3 million)
Bingo up at Euro 51.4 million (2009 FY – Euro 22.8 million)
Sports betting up at Euro 20.8 million (2009 FY – Euro 13.2 million)
Profit before tax from continuing operations was Euro 43.8 million, down from 2009 FY when it was Euro 57.4 million. Profit after tax was similarly lower, declining from Euro 53.3 million in 2009 to Euro 40.2 million in 2010.
Commenting on the results, chief executive Jim Ryan said:
“During 2010 the group delivered on a number of its strategic objectives, the most significant of which was the announcement of our transformational merger with bwin, the world’s largest listed online sports betting business.
“We also completed the integration of both Cashcade and WPT whilst our French network has captured around 14 percent of the newly regulated French poker market.
“In the US we believe there is growing political and commercial will to regulate online gaming and that we are well-positioned to exploit our strong franchise in that market should regulations allow.
“As our merger with bwin is set to complete on 31 March 2011, we are finalising our plans to integrate both businesses as quickly as possible and remain confident about delivering the cost and revenue synergies we have already identified in line with the previously announced timetable, with the full Euro 55 million per annum being delivered by 2013.”
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 2011, average gross daily revenue was Euro 1,431,800 (Q4/2010: Euro 1,425,400).
“New poker player sign-ups increased to an average of 1,905 per day (Q4/2010: 1,853) and there were on average 52,400 active poker players per day (Q4/2010: 50,400).
“Average gross daily revenue for poker was Euro 452,600 (Q4/2010: Euro 440,200); for casino was Euro 557,100 (Q4/2010: Euro 577,200); for bingo was Euro 339,100 (Q4/2010: Euro 337,200) and for sports betting was Euro 83,000 (Q4/2010: Euro 70,800).”

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