PartyGaming, the publicly listed online gaming company, today released their financial results for the fist 6 months of 2010. Total revenue is up 30% to €181m on the same period as last year, a figure that has surprised many industry analysts.
Total EBITDA is also up to €48.1m, a rise of 15%, but the consolidated numbers, whilst impressive given the background of the current global financial crisis hide a worrying trend for the organisation.
Poker revenue is down €6.8m to €64.4m a figure which represents an alarming downward trend for PartyGaming’s once dominant poker product. However, it is the growth of their casino product that has really driven the growth in the consolidated revenue and EBITDA figures. Casino revenue is up €14.3m to €76.4m, which marks a milestone for the group. This is the first time in PartyGaming’s history that casino revenue has out stripped poker revenue. Bingo revenue is also up to €26m, a rise which can wholly be attributed to the 2009 bolt on acquisition of Cashcade. The Sports Book product has also posted positive results, with revenue doubling to €10m, much of which can be attributed to the recent football World Cup.
According to Jim Ryan, PartyGamings CEO, the declining poker revenue was down to the “continued dominance of US-facing sites”.
In a meeting with industry analysts, Ryan was keen to explain that much of the growth in the casino vertical was been down to the business aggressively acquiring new casino players. Historically the organisation has cross sold the casino product to their current poker playing base, a strategic move that has not proved successful in the long term.
Other news released by PartyGaming in their statement to the financial markets include a timescale for a proposed merger with BWin, which has a target completion date of Q1 2011.
The full set of financial results for PartyGaming can be found on their investor web site.
Source: OnlinePokiesClub.com - the number one source for online pokies news and views.
Tags: Financial Results, partygaming
This entry was written by Nena on Saturday, August 7th, 2010 at 2:12 am and is filed under News.
