PartyGaming says it is confident on prospects

PartyGaming, the world’s biggest online poker firm whose websites include PartyPoker and PartyCasino, posted earnings before interest tax, depreciation and amortisation (EBITDA) from continuing operations of us$ 36.9 million in the six months to June 30, up 29 percent from the same period last year.

The full impact of its withdrawal from the United States last year became evident. It made a pretax loss of 32 million from revenue of us$ 212.5 million, it said on Wednesday.

"We had voluntarily approached the (US) Department of Justice and we are working toward satisfactory resolution ... We continue to move along toward hopefully what will be considered by all a satisfactory resolution," Chief Executive Mitch Garber told a conference call.

In June the company said it had been in talks with US authorities, as it seeks to find out whether it could face prosecution for taking bets in the world’s largest gaming market before last year’s effective ban on Internet gambling. It said trading in the second half had been in line with its expectations, with gross revenues averaging us$ 1.4 million per day in the eight weeks to August 26.

PartyGaming shares, which have shrunk by around a sixth in its market value since a 2005 initial public offering, rose 3.3 percent. Finance Director Martin Weigold said the company remained comfortable with market forecasts for its earnings.

PartyGaming has said it is targeting acquisitions and joint ventures in China and Russia and hinted that deals were now imminent. "The board remains confident about the group’s prospects for the full year ... Over the coming weeks and months we expect to announce a number of further important business alliances with leading companies around the world," it said in a statement.