PartyGaming releases 2008 results

Gibraltar-based PartyGaming is the firm behind popular online poker domain PartyPoker.com and revealed that ‘soft’ performance from this operation was offset by solid growth in all other verticals.

Net revenues from its poker operations were reported at us$ 274 million, which was a drop of over seven percent from 2007, but those from its casino service rose in excess of eight percent to reach us$ 176 million. In addition, revenues from PartyGaming’s sportsbetting operation were up almost us$ 2 million to us$ 18 million while those from bingo grew by us$ 2.4 million to hit us$ 4.9 million.

PartyGaming stated that its profits from operating activities grew massively to reach us$ 77.9 million from us$ 5.3 million in 2007 while its profits before tax from continuing operations were reported at us$ 82.4 million. Profits after tax from continuing operations rose to us$ 77.8 million from us$ 13.9 million with cashflow before working capital movements up 23 % to us$ 132.5 million.

“We are pleased to announce another strong set of results with clean EBITDA from continuing operations up 29 % to us$ 144.2 million,” said Jim Ryan, CEO for PartyGaming.

“Our business model is both flexible and robust with a capacity to generate strong cashflow. 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 not just to withstand the macroeconomic challenges that may lie ahead but also to execute our strategy, create value for all of our stakeholders and achieve our long-term objective of becoming the world’s most valuable online gaming company.”

Martin Weigold, Finance Director for PartyGaming, stated that he was ‘reasonably optimistic’ that the US market would reopen in the ‘not too distant future’ and cited legislation from Representative Barney Frank as ‘an important first step’ in the process.