PartyGaming Poker Revenue Expectations Fall AgainSecond Quarter Poker Revenue at Party Gaming Expected To Decline Further in Second Quarter |
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PartyGaming, the publicly-quoted parent company of PartyPoker, today issued its second quarter trading update indicating that poker revenue is expected to drop between 11 and 13 percent (in Euro) in the second quarter of 2010 compared to the first quarter.
The company said that, “Poker has been particularly tough… due to reduced frequency of play on the back of both seasonality and the World Cup.”
The number of daily average players is expected to fall between eight and nine percent.
The company also said the delay in introducing cash games in Italy, not expected now until the fourth quarter 2010, meant clean EBITDA (earnings before interest, tax, depreciation, and amortisation) margins in the first half of 2010 were adversely impacted due to lower than expected return on marketing spend.
However the company was bullish on its newly licenced PartyPoker.fr site in France saying, “…we are very encouraged by our network’s performance to-date.”
“We have made great progress in securing partners for our poker network in France with PMU, AB Groupe and Aviation Club de France already in place,” the company said. “We expect to add another significant partner to our French network in the near future. The early signs from this important new market are encouraging.
With regards to the World Poker Tour which the company purchased last year for $12.3 million, it said, “The World Poker Tour is performing in-line with our expectations and we believe that this asset, combined with the strength of the PartyPoker brand and the resolution of our US legacy issues ensures that we are well-positioned should online gaming become regulated in the US. In this respect, discussions are progressing well with a number of potential US-based gaming partners.”
PartyPoker’s full year 2009 revenue was down 47 percent on 2008.
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