Groupe Partouche first half net profit plunged 64.9 % on tougher casino laws

In a statement, the group warned that ’persistent gloom’ wil also hit second-half operating earnings and announced it is studying the possibility of taking minority stakes in foreign groups. Net profit was 8.5 million euros, plummeting from 24.3 million a year earlier and operating profit slid 39.5 percent to 33.1 million.

Societe Generale analysts had been expecting a sharp drop in profitability and said the market’s anticipation has already caused a steep correction in Partouche shares, down 15 pct from January 1.

But earnings were even lower than SG’s forecast of a 47 percent drop in net profit to 13 million euros and a 27 percent slide in operating profit to 40 million. Gross gaming sales fell 5.9 percent in the period to 406.4 million and consolidated sales dropped 3.4 percent at 248.6 million.

Partouche said the slide in revenues is ’largely’ due to entry checks in force at casinos since November 2006. It noted that operating earnings in the six months to April 30 2006 had benefited from a 9.1 million euros disposal gain.

Partouche said in order to recover earnings it plans a slot-machine renewal programme introducing machines designed around new regulations, which will also be able to accept bank notes. It will also create poker rooms to attract new clients.