PartyGaming News: Half year report for the six months ended 30 June 2010
Profiles
PartyGaming PartyCasino.com PartyPoker.com World Poker Tour WPT Casino WPT PokerPartyBingo.com Gamebookers.com PartyGammon.com PartyBets.comTotal revenue up 30% to €181.2m (2009: €139.9m) driven by acquisitions and strong growth in casino and sports betting
Continuing Clean EBITDA* up 14% to €48.1m (2009: €42.3m)
Continuing Basic Clean EPS* of 6.0 € cents (2009: 6.7 € cents); Total Basic Clean EPS of 6.0 € cents (2009: 6.6 € cents)
Transformational Proposed Merger with bwin expected to complete in first quarter 2011
Solid progress in newly regulated markets (France and Italy); Denmark is on-track to open early in 2011
Net cashflow from Continuing operations up 65% to €55.3m (2009: €33.5m) with net cash at 30 June 2010 of €146.8m (2009: €166.7m)
* EBITDA/EPS before the provision for costs associated with the Group’s Non-Prosecution Agreement, reorganisation costs, and before non-cash charges relating to share-based payments (see reconciliation of Clean EBITDA to operating profit (loss) below).
# Operations located physically outside of the US but which relate to US customers that were no longer accepted following the enactment of the UIGEA.
Commenting on today’s results announcement, Jim Ryan, PartyGaming Chief Executive Officer, said:
“We delivered another robust financial performance in the first half and also made great progress in executing our strategy. While poker was impacted by the football World Cup and remained difficult from a competitive perspective, our other verticals continued to perform strongly. Total revenue was up 30% and Clean EBITDA from Continuing Operations was up 14% versus the prior year. As previously announced, Clean EBITDA margins in the first half were slightly lower than expected due to the delayed launch of cash game poker in Italy but we retain our previous full year guidance of approximately 28%, subject to the returns achieved on planned marketing spend in both France and Italy where we are continuing to expand the share of our respective poker networks.
‘‘Our proposed merger with bwin is a transformational opportunity for the Group and we expect that it will provide significant strategic, operational and financial benefits for the shareholders of both companies. Whilst there is much work to do ahead of completion in early 2011, we are excited about the prospects for what will then be the clear market leader in online gaming with strong positions in all key product verticals and territories.”
On current trading and outlook Jim Ryan added:
“Since 30 June 2010, the Group has continued to perform in-line with the Board’s expectations. Seizing a strong position in newly regulated markets is a key focus for us. Our strategy of combining a strong B2C franchise with significant local brands is already proving to be a powerful force as evidenced by our network’s position in French poker. As other markets follow Italy and France, we expect that a limited number of large networks and brands will emerge to become market leaders – we are determined that together PartyGaming/bwin will be one of them. This natural consolidation of the marketplace will accelerate through corporate mergers and acquisitions and as one of the largest players in the sector we remain committed to continue playing an active role. Whilst the macroeconomic and competitive environments remain challenging, we remain confident about the Group’s prospects for the rest of the year and beyond.”
Contacts:
PartyGaming Plc +44 (0) 207 337 0100
Peter Reynolds, Director of Corporate Affairs
John Shepherd, Director of Corporate Communications
Interview with Jim Ryan and Martin Weigold
An interview with Jim Ryan, Chief Executive Officer, and Martin Weigold, Group Finance Director, in video/audio and text will be available from 7.00am BST on 6 August 2010 on: http://www.partygaming.com and on http://www.cantos.com.
Analyst meeting, webcast, dial-in and conference call details: 6 August 2010
There will be an analyst meeting for invited UK-based analysts at Numis Securities, The London Stock Exchange Building, 10 Paternoster Square, London, EC4M 7LT starting at 9.30am BST. There will be a simultaneous webcast and dial-in broadcast of the meeting. To register for the live webcast, please pre-register for access by visiting the Group website (www.partygaming.com). Details for the dial-in facility are given below. A copy of the webcast and slide presentation given at the meeting will be available on the Group’s website later today.
Dial-in details to listen to the analyst presentation: 6 August 2010
9.20 am Please call +44 (0) 20 3003 2666
Title PartyGaming Interim Results
9.30 am Meeting starts
A recording of the meeting will be available for a period of seven days from 6 August 2010. To access the recording please dial the following replay telephone number:
Replay telephone number +44 (0) 208 196 1988
Replay passcode: 9050397#
About PartyGaming Plc
The Group is a constituent of the FTSE 250 share index with its shares listed on The London Stock Exchange under the ticker: PRTY. In the year ended 31 December 2009, PartyGaming’s Continuing operations generated revenue of €310.1m and Clean EBITDA of €93.8m.
PartyGaming is regulated and licensed by the Governments of Gibraltar, Italy and France and by the Alderney Gambling Control Commission. The Group is also certified as a responsible gaming operator by GamCare, the leading UK authority on the provision of advice, practical help, support and counselling in addressing the social impact of gambling. PartyGaming’s shares are also a constituent member of the FTSE4Good Index Series, which enables investors to identify companies that meet globally recognised corporate responsibility standards.
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