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PartyGaming 3Q Sales Down From Last Year

Date published: 15 October 2009

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Today, leading Gibraltar-based online gambling firm, PartyGaming Plc, published its third quarter results which were down by 4 percent on last year to $112.7m. However, the drop was reportedly in line with company expectations and PartyGaming executives are confident in the remainder of the year.

Listed on the London Stock Exchange (LSE), PartyGaming reported a 2 percent increase in its online casino operations to $49.2m, but an 8 percent decrease in its PartyPoker results to $45.1m. The company attributed PartyPoker's losses to a highly competitive marketplace, despite it being the firm's flagship brand.

But online bingo has been good to PartyGaming, as it reported an increase in bingo revenues to $13.2m from $2m last year. The noteworthy increase is attributed to PartyGaming's acquisition of Cashcade Ltd (for £95.9m), the large online gambling firm that started leading online bingo site, Foxy Bingo.

PartyGaming confirmed that its full year earnings (Before Interest, Taxes, Depreciation and Amortization) are in line with the 30.5 percent it achieved last year. Said PartyGaming CEO, Jim Ryan, 'Our performance in the seasonally weak Q3 was in line with our expectations, with revenue up 11 percent versus the previous quarter.'

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The online gambling giant seems to have turned over a new leaf, now that it no longer has a 'noose around its neck' in the form of the U.S. Justice Department. In April this year, PartyGaming agreed to pay $105m in restitution to U.S. authorities, who in turn agreed not to prosecute the firm or any of its executives.

PartyGaming was one of the many companies being investigated by the U.S. Justice Department for accepting wagers from players in the United States prior to the federal government's online gambling ban in October 2006, which came about via the passing of the Unlawful Internet Gambling Enforcement Act (UIGEA).

As of 7:11am GMT this morning (October 15, 2009), PartyGaming's shares were down 1.9 percent or 5p at 277p. However, over the past 12 months its share price has risen by 88 percent.