18th Dec 2009 07:00
18 December 2009
PartyGaming Plc
("PartyGaming" and, together with its subsidiaries, the "Group")
Pre-Close Trading Update
Solid current trading and return to sequential revenue growth for all product verticals
Revenue in-line with the Board's expectations while Clean EBITDA for the year to 31 December 2009 is expected to be slightly ahead of the Board's expectations
Prospective licensing and regulation in Italy and France offers exciting medium to long term revenue potential
New £35m bank facility
PartyGaming Plc, the world's leading listed online gaming company, announces that trading since the end of September 2009 has been solid. While revenue is expected to be in line with the Board's expectations, Clean EBITDA for the year to 31 December 2009 is expected to be slightly ahead of the Board's expectations.
Whilst the timing and details of new regulations to be introduced in Italy and France in 2010 have yet to be clarified, we believe these markets represent significant potential revenue opportunities for the Group in the medium to long term. Leveraging our scale and brand strength, we plan to take full advantage of these opportunities through the launch of B2B services with strong local brands and also through our existing brands. Combining the strength of the PartyPoker brand with the trade and assets of the World Poker Tour that we acquired in November 2009, we believe we are also well-positioned should the US government elect to regulate online poker in the US.
Commenting on today's announcement, Jim Ryan, Chief Executive Officer, said:
"As indicated at the time of our third quarter key performance indicators, our business has continued to perform well across the board during the fourth quarter with a return to net revenue growth across all four of our key product verticals.
"Returning poker to growth has been a key focus for us. We are pleased to see that the initiatives introduced throughout the year are now feeding through into both operational and financial performance with increased player numbers and average net daily revenues versus the previous quarter, despite continued competition from illegal US-facing sites and the difficult macroeconomic climate.
Our casino business has also continued to perform well on the back of new games launched on PartyCasino as well as higher jackpots, with the most recent Mega Gold jackpot paying out close to $5.0m to the lucky winner earlier this month.
"Bingo continues to show substantial growth on the back of the Cashcade acquisition in July 2009. In sports betting, our gross win margin has benefited from a good run of sporting results and the introduction of improved risk management tools.
"Despite the challenges presented by the prevailing macroeconomic environment, we have not been distracted from the execution of our strategic plan. With the prospect of a number of new and large regulated markets in front of us, an expanding portfolio of B2B customers and a return to growth in our core business, we remain confident about the Group's prospects."
New bank facility
The Group, via its UK subsidiary, has entered into a £35m three year term loan. The loan will be used for general corporate purposes including mergers and acquisitions. The all-in cost of the loan is anticipated to be approximately 6% per annum based on current interest rates.
The Group's fourth quarter KPIs will be announced on 3 February 2010.
Contacts:
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PartyGaming Plc |
+44 (0)20 7337 0100 |
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Peter Reynolds, Director of Investor Relations |
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John Shepherd, Director of Corporate Communications |
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