Dissapointing figures for gambling giant
23-05-2009
The full-year 2008 results of Party Gaming Poker have just been released and the financial numbers do not look good for Party Gaming PLC at all. Party Gaming plc may have primarily been the sought-after online poker destination, but its poker sector is not performing well at all. The end of 2007 saw the poker sector earning $295 million. In 2008, this figure dropped by a whopping $21 million, just down to $274 million!
Other online gambling ventures are better off
Apart from the poker sector, the other sectors seem to be better off. For starters, the online casino came up with better net revenues this year. With $176 million in its pocket, the revenues are now up by $31.8 million from last year. The latest sports betting online venture is also up by $1.9 million, climbing up to $18 million in total. Bingo, on the other hand, is also up by $2.4 million, with net revenues reaching $4.9 million.
2008 total net revenues
Overall, despite the decline of total net revenues, the figure is still impressive, even reaching $472.9 million. With this figure, the decline adds up to just $3.1 million. This is after the amount of $18.2 million has been adjusted, following a “non-recurring net revenue adjustment”.
Other highlights of the Party Casino / Poker 2008 results are:
*29% increase of continuing Clean EBITDA, reaching $144.2 million. In 2007, this figure was just $111.7 million. *53% increase of the total Clean EBITDA, reaching $133.3 million. In 2007, this was just $87.0 million. *CIRSA and DM plc made available to the B2B or business-to-business customers of the Party Gaming portfolio *23% increase of cash flow from operations, reaching $132.5 million. In 2007, this was just $107.6 million. *$70.3 million, as comprised by progressive prize pools and group cash after client liabilities.
Party Gaming CEO Jim Ryan’s sentiments on the results:
Mr. Ryan is extremely pleased with the 29% increase up to 144.2 million with the continuing Clean EBITDA. He reiterates that Party Gaming’s business model is now made stronger and more flexible than ever, that it is able to generate steady cash flow on its own. According to Mr. Ryan, Party Gaming’s balance sheet displays strong results pertaining to their brands and their respective market positions, thereby leading to a healthy execution of their business strategies. Mr. Ryan believes that Party Gaming is now in a strong position to achieve all of their long-term goals and objectives – especially the one of becoming the primary online gaming company all over the world.
Current trading results increase as well
During the 5 weeks that ended February 4, 2009, the average gross daily revenue reached $1,422,900. Poker alone saw an increase in new casino player sign-ups, reaching 1,494 each day. An average of 51,000 active casino players generated gross revenue of $756,700 each day. As for the online casino, daily gross revenue reached $597,200 while sports betting gross wins reached a daily average of $75,700. Bingo, on the other hand, reached gross revenue of $13,200 each day. During the four weeks that ended March 4, 2009, average gross revenue per day reached $1,536,200. Poker alone saw sign-ups averaging at 1,550 each day and 51,100 active players could be seen each day as well. Gross daily revenue for poker reached $738,500; for casino, $662,500; for sports betting, $123,000, and for bingo, $12,200.
