Euro Poker News: Party Gaming Results Show UIGEA Impact

Party Gaming, owner of Party Poker, formerly the world's largest poker site, has reported a loss of $47.1 million for the first half of 2007 compared to a profit of $320. 5 million for the same period in 2006.

Revenues decreased from $661.9 million between January and June 2006 to $212.5 million between January and June 2007.

However, continuing revenue, which strips out the UIEGA effect by accounting for Europe, Middle East, and Africa was up 42 percent to $212.5 million (2006: $149.8 million) in these regions.

Commenting on the results, Mitch Garber, PartyGaming CEO was upbeat, saying, "The Group has delivered a solid performance in the first half of 2007 with excellent top line growth and new player signups. We continue to execute our strategy through growing our player base, localization of the customer offer, and broadening our product suite.

"In the four weeks ended 26 August 2007, average gross daily revenue was $1,418,000, a 1 percent decrease over July, but reflecting the peak holiday period in Europe. In poker, new player signups averaged 1,138 per day and there were on average 59,000 active players per day, generating average gross daily revenue of $854,000. In casino, average gross daily revenue was $501,000 per day, while in sports betting, gross win per day was $56,000 per day.

"Over the coming weeks and months, we expect to announce a number of further important business alliances with leading companies around the world that will help us to promote and grow our business. While the important fourth quarter lies ahead, the Board remains confident about the Group's prospects for the full year."

The Group's financial performance in 2006 was affected by the enactment of the Unlawful Internet Gambling Enforcement Act (the UIGEA) in the United States and the Group's decision to terminate immediately all real money games to customers in the U.S.

Poker remained the largest individual business segment within continuing operations. In the six months to 30 June 2007, Poker represented 66 percent of revenues (2006: 86 percent). PartyPoker.com remained the major force behind the Group's poker business and, despite the cannibalisation effect of the rapid growth in casino revenues, continuing poker revenue still grew by 8 percent to $140.5 million (2006: $129.5 million), driven by strong growth in new player signups, partially offset by the migration of a number of high-value players to sites that continue to accept players based in the U.S.

PartyGaming Plc is the world's leading listed online gaming company. PartyGaming offers a broad range of different games and owns some of the biggest and best-known brands in online gaming, including PartyPoker.com, one of the world's largest online poker rooms, EmpirePoker.com, PartyCasino.com, PartyBingo.com, PartyGammon.com, PartyBets.com, and Gamebookers.com.

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