6th May 2010 07:00
6 May 2010
PartyGaming Plc
("PartyGaming" or the "Company" and, together with its subsidiaries, the "Group")
First Quarter Key Performance Indicators and Interim Management Statement
First quarter highlights
Ø Group revenue up 27% to $127.1m (2009: $100.1m); average daily revenue down 2% versus the previous quarter due to an exceptional casino performance in Q4 and FX
Ø Poker revenue of $47.8m (2009: $53.6m); average daily poker revenue in line with the previous quarter on the back of higher player numbers offset by adverse FX movements
Ø Casino revenue up 25% to $51.2m (2009: $40.9m); average daily casino revenue down 9% versus the previous quarter due to an exceptional casino performance in Q4 and FX
Ø Bingo revenue of $17.7m (2009: $1.0m); average daily bingo revenue up 4% versus the previous quarter driven by higher player numbers, partially offset by adverse FX
Ø Sports Betting revenue of $7.1m (2009: $4.5m); average daily sports betting revenue up 1% versus the previous quarter due to further improvement in gross win margin
Ø Aviation Club de France set to join our French poker network alongside PMU and AB Groupe in 2010
Commenting on today's announcement, Jim Ryan, Chief Executive Officer, said:
"Total revenue was up by 27% year-on-year with strong increases in all product verticals except poker which fell due to competition from US-facing sites. On a quarter-on-quarter basis and as expected, we have seen a slight softening in average daily revenue overall following the exceptional casino performance in the previous quarter. While Clean EBITDA margins for the year to-date were ahead of our expectations in the first quarter of 2010, we are maintaining our previous full year guidance for 2010 Clean EBITDA margins of approximately 28%. In line with our expectations, since the end of March gross average daily revenues have softened and were down between 6% and 7% versus the average for the previous quarter, reflecting the normal seasonal pattern seen in previous years.
"In a separate announcement made today we are delighted to announce details of a further B2B deal in France with the addition of Aviation Club de France that will join our French poker network which we plan to launch as soon as the new regulations allow."
Consolidated Key Performance Indicators (excluding network services and WPT)
|
Three months to 31 March |
2010 |
% change versus Q4 2009 |
% change versus Prior year |
2009 |
|
Active player days (m) |
8.2 |
5% |
34% |
6.1 |
|
Daily average players (000) |
91.4 |
7% |
35% |
67.7 |
|
Yield per active player day ($) |
15.1 |
(10%) |
(8%) |
16.4 |
|
Yield per unique active player in the quarter ($) |
146.0 |
(19%) |
(19%) |
179.9 |
|
Real money sign-ups (000) |
245.5 |
15% |
23% |
199.2 |
|
Unique active players during the period (000) |
847.6 |
17% |
52% |
556.2 |
|
Average net daily revenue (excluding skins) ($000) |
1,375.2 |
(4%) |
24% |
1,111.8 |
The Group delivered a strong year-on-year performance, further assisted by the acquisitions of Cashcade and World Poker Tour that took place during the second half of 2009. After an exceptional performance in the fourth quarter of 2009, casino revenue returned to more normalised levels and this decline versus the previous quarter coupled with adverse currency movements held back overall performance. Versus the previous quarter, consolidated average net daily revenue, excluding network services and WPT, declined by 4% to $1,375,200 but was up 24% year-on-year. Strong growth in network services and WPT meant that overall, average net daily revenue was down 2% to $1,412,100 on the prior quarter but was up 27% on the same period last year.
As ever, continuing to grow the player base remains a key objective and a long-term revenue driver. The Group added over 245,000 new sign-ups during the quarter (2009: 199,200) a 23% increase over the prior year and 15% above that achieved in the previous quarter. This helped to boost the number of daily average players that increased by 7% versus the previous quarter with solid increases in each product vertical. This growth in player numbers was offset by a decline in average player yields that reflected the reduced revenue in casino, where yields returned to more normalised levels, foreign currency movements as well as a return to 25% bonus rates in poker. As a result, consolidated yield per active player day fell 10% versus the previous quarter to $15.1 (2009: $16.4).
In poker, we continued to grow our market share in the rapidly expanding Italian poker market and our network now has a 3% share2 which, together with our continued marketing efforts across other markets, resulted in a strong year-on-year as well as quarter-on-quarter increase in new player sign-ups and unique active players. Further growth is expected in Italy when ring games in poker as well as online casino games will be licensed for the first time, expected later this year. Player yields in poker declined year-on-year due to increased competition, particularly from US sites, prompting an increase in bonus rates that returned to 25% of gross revenue, in-line with previous guidance. As a result, average daily poker revenue declined by 11% versus the prior year to $531,500 (2009: $595,300) but was flat quarter-on-quarter as higher player numbers were offset by lower player yields.
As expected, the exceptionally strong performance by casino in the fourth quarter was not repeated in the first quarter of 2010. While both new player sign-ups and daily average players increased by 15% and 5% respectively versus the previous quarter, this was more than off-set by a reduction in yield from the previous quarter that had benefited from the recycling of part of a jackpot win by one of our VIP customers. That said, casino delivered another strong year-on-year performance with a 25% increase in average daily revenue to $568,900 (2009: $454,800).
Bingo also had another solid quarter with a 4% increase in average daily revenue to $196,400 over the previous quarter (2009: $11,200) driven by a 6% increase in daily average players, partially offset by a drop in yield per active player day due to foreign exchange movements. The substantial increase year-on-year was driven by the acquisition of Cashcade.
2 Source: AAMS (includes INTRALOT and Fueps)
In sports betting, average daily revenue increased by 55% year-on-year to $78,400 (2009: $50,500) on the back of operational improvements including more efficient utilisation of player bonuses and trading improvements. Whilst the amount wagered fell by 19% versus the prior year, the gross win margin increased to 7.3% (2009: 5.3%).
Revenue from Network Services doubled versus the previous quarter to $0.6m whilst revenue from the World Poker Tour, which was acquired on 9 November 2009, more than trebled to $2.7m.
Material Events, Transactions and Financial Position
As at 31 March 2010, the Group had bank borrowings and other loans of $52.3m and had total cash (and cash equivalents) of $228.3m and processor receiveables of $24.0m, against client liabilities (including progressive prize pools) of $125.8m.
When the new online gaming legislation is enacted in France, the Group intends to cease accepting players located in France for casino and bingo games. In the first quarter of 2010, revenue generated from French casino and bingo games amounted to $3.1m.
There have been no material events, transactions or changes in the financial position of the Group since the 2009 annual results were announced on 4 March 2010 other than outlined in this statement.
As usual, full details of all of the Group's quarterly KPI data by segment is available for download at the Group's website at http://www.partygaming.com/investor/documentation.html.
Contacts:
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PartyGaming Plc |
+44 (0) 20 7337 0100 |
|
Peter Reynolds, Group Director of Corporate Affairs |
|
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John Shepherd, Director of Corporate Communications |
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Conference call
Thursday 6 May 2010
For analysts and investors there will be an opportunity to put questions to Jim Ryan, Chief Executive Officer and Martin Weigold, Group Finance Director, by way of a conference call at 09.30 (British Summer Time). The details of the call are as follows:
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Dial-In No: |
+44 (0) 20 3003 2666 |
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Replay (available for 1 week): |
+44 (0) 20 8196 1998 |
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Replay passcode: |
5902408# |
Appendix
Poker (including Emerging Games) - Key Performance Indicators
|
Three months to 31 March |
2010 |
% change versus Q4 2009 |
% change versus prior year |
2009 |
|
Active player days (m) |
5.0 |
4% |
9% |
4.6 |
|
Daily average players (000) |
55.8 |
8% |
9% |
51.1 |
|
Yield per active player day ($) |
9.5 |
(8%) |
(19%) |
11.7 |
|
Yield per unique active player in the quarter ($) |
99.1 |
(12%) |
(27%) |
135.6 |
|
Real money sign-ups (000) |
145.3 |
16% |
9% |
132.7 |
|
Unique active players during the period (000) |
482.9 |
10% |
22% |
395.0 |
|
Average net daily revenue (excl. skins) ($000) |
531.5 |
(0%) |
(11%) |
595.3 |
Casino - Key Performance Indicators
|
Three months to 31 March |
2010 |
% change versus Q4 2009 |
% change versus prior year |
2009 |
|
Active player days (000) |
1,055.2 |
3% |
2% |
1,033.9 |
|
Daily average players (000) |
11.7 |
5% |
2% |
11.5 |
|
Yield per active player day ($) |
48.5 |
(14%) |
22% |
39.6 |
|
Yield per unique active player in the quarter ($) |
284.0 |
(16%) |
43% |
198.4 |
|
Real money sign-ups (000) |
26.6 |
15% |
(13%) |
30.6 |
|
Unique active players during the period (000) |
180.3 |
6% |
(13%) |
206.4 |
|
Average net daily revenue (excl. skins) ($000) |
568.9 |
(9%) |
25% |
454.8 |
Bingo - Key Performance Indicators
|
Three months to 31 March |
2010 |
% change versus Q4 2009 |
% change versus prior year |
2009 |
|
Active player days (000) |
1,800.2 |
4% |
2,043% |
84.0 |
|
Daily average players (000) |
20.0 |
6% |
2,122% |
0.9 |
|
Yield per active player day ($) |
9.8 |
(2%) |
(18%) |
12.0 |
|
Yield per unique active player in the quarter ($) |
65.5 |
(31%) |
19% |
54.9 |
|
Real money sign-ups (000) |
53.6 |
44% |
2,044% |
2.5 |
|
Unique active players during the period (000) |
269.7 |
48% |
1,366% |
18.4 |
|
Average net daily revenue (excl. skins) ($000) |
196.4 |
4% |
1,654% |
11.2 |
Sports Betting - Key Performance Indicators
|
Three months to 31 March |
2010 |
% change versus Q4 2009 |
% change versus prior year |
2009 |
|
Active player days (000) |
956.3 |
4% |
(3%) |
989.1 |
|
Daily average players (000) |
10.6 |
6% |
(4%) |
11.0 |
|
Yield per active player day ($) |
7.4 |
(5%) |
61% |
4.6 |
|
Yield per unique active player in the quarter ($) |
88.2 |
6% |
107% |
42.6 |
|
Real money sign-ups (000) |
20.0 |
(28%) |
(40%) |
33.5 |
|
Unique active players during the period (000) |
80.0 |
(7%) |
(25%) |
106.7 |
|
Average net daily revenue ($000) |
78.4 |
1% |
55% |
50.5 |
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