In its end of year results released to the London Stock Exchange on Wednesday, Party Gaming‘s Net Revenue was up 3% to $472.9 million during the 2008 calendar year in comparison to 2007. PartyPoker, which is the company’s well-known online poker room, saw its Net Revenue sink by 7% to $274 million over the same period.
Party Gaming is traded on the London Stock Exchange under the symbol “PRTY.” In its earnings release on Wednesday, the company noted that “soft performance in poker [was] offset by solid growth in all other verticals.” Online casino revenues for Party Gaming soared 22.2% to $176.0 million in 2008, rising from $144.2 million in 2007. Online sports betting revenues also rose in 2008. For that market segment, Party Gaming reported an 11.9% increase in revenue from $16.1 million during the 2007 calendar year to $18.0 million in 2008.
Party Gaming’s Chief Executive Officer Jim Ryan noted in the company’s earnings release to the London Stock Exchange, “Our brands and market position are strong and we have a healthy balance sheet with which to execute our business strategy. I believe that we are in an excellent position… to achieve our long-term objective of becoming the world’s most valuable online gaming company.” The company has plenty of reasons to be optimistic about the 2009 calendar year. During the first five weeks of the New Year, new poker sign-ups numbered 1,494 per week, on average. In the four weeks that ended on March 4th, that number grew to 1,550.
The company attributed its 7% drop in online poker revenues to “increased promotion costs around the launch of the next generation of PartyPoker, a delay in the launch of a new loyalty program, and continued competitive pressures, particularly from sites still accepting U.S. players.” PartyPoker vacated the U.S. market after the passage of the 2006 Unlawful Internet Gambling Enforcement Act (UIGEA) in deference to shareholder interests. PartyPoker ran its second Monthly Million on March 1st and launched brand new software last September.
In December, one of its co-founders, Anurag Dikshit, admitted to violating the Wire Act of 1961 in a New York court room. His decision, which prompted poker legend Doyle Brunson to say he was “appropriately named,” sent shockwaves throughout the industry. Dikshit agreed to pay the U.S. Government $300 million and may face up to two years in jail. Sentencing is scheduled for December of 2010. The company also announced on Wednesday that the company is in ongoing negotiations with the U.S. Government. An agreement may help put Party Gaming in good graces with the United States for its transgressions prior to 2006. No timeline for a possible settlement has been given.
Its online casino business has grown due in part to the launch of Saturday Night Fever, Top Gun, Mission: Impossible, The Godfather, Terminator, and Gone With The Wind titles in 2008. The well-known brands helped grow Party Gaming’s wagers by a combined $143 million last year. The company also entered into a relationship with CIRSA, which will “seek to exploit online gaming opportunities in Spanish speaking countries.” CIRSA is primarily known for its presence in Spain. However, it is also booming throughout Latin America.
Company-wide new player sign-ups from Europe, the Middle East, and Africa were 536,000 in 2008, down 6% from 572,000 in 2007. New players from the Americas were 66,000 in 2008, a drop of 15% from 2007. Asia Pacific sign-ups were 27,000 in 2008, off by 20% year over year. In 2008, the company boasted a total of 26.4 million active players, which was down from 28.4 million in 2007, a drop of 7%.
PartyPoker posted mixed results. The number of average daily players fell 12% to 57,000 in 2008 in comparison to 65,000 in 2007. The number of real money sign-ups dove 22% to 444,000 in 2008 from 573,000 in 2007. However, the number of unique active players rose by 3% in 2008 to 947,000. The company tagged the “exceptional marketing push in the first quarter of 2007 to preserve liquidity immediately following the UIGEA” as the reason for the sharp fall in real money players last year.
Party Gaming has undergone a bevy of changes to its Board of Directors in recent months. Ryan became the company’s new CEO in June. The Managing Director of Party Gaming’s Board of Directors, John O’Malia, resigned at the end of February. Non-Executive Chairman Michael Jackson was replaced by Rod Perry in August. Finally, Rami Lerner supplanted John Davy last week.
Its stock soared at the close of business on Wednesday after the earnings results were released. PRTY rose ₤17.75 to close at ₤249.00. It is inching back towards its 52 week high of ₤312.000. In November, it had closed below ₤100.
Party Poker is getting just what they deserve, after pulling out of the USA with no advance notice to USA players. I had a ton of trouble trying to get my money back from them from my account. It took several months and when I did get it, It was not in USA currency. It was in a United KIngdom Check, which I am unable to cash in the USA. I endorsed the check to an associate in London. He attempted to cash it in London but was told, in reality, it was of no cash value, as the charges involved with cashing the check EXCEEDED THE VALUE of the check. PartPoker immediately disconnected their phone lines and have made it impossible for a citizen of the USA to contact them by phone or letter. They will not respond to e-mails sent to them from US citizens either. ” Touche ” Party Poker. You reap what you sow. You are the type of Poker Site that gives the entire poker community a bad name and turns current and future allies to our cause against us. Cheap Shot, Party Poker. I can only hope your quarterly losses multiply expontentially. You are most deserving.