PartyGaming Revenue Soars By 15% To €357.3m In 2010March 3, 2011 8:35 am
PartyGaming has just released its financial results for the whole of 2010, which shows a 15% rise in the company’s revenue to €357.3m from €310.1m in 2009.
Net income for the company had also risen to €38.9 million ($54 million), compared with a €18.5 million euros loss a year earlier.
For the year ended 31st December, PartyGaming’s impressive revenue results were driven forward by an increase across its casino, bingo and sports betting operations, which helped offset continuing weakness in the groups poker offering.
In total, PartyCasino revenue rose to €151.4m in 2010 from €136.3m a year earlier, while PartyBingo had risen to €51.4m from €22.8m in 2009 and Sports Betting reached €20.8m from €13.2m.
However, PartyPoker continued to languish in the doldrums and its revenue had fallen to €124.8m from €136.8m a year earlier. The company has blamed its continuing lacklustre poker results on competition from operators who still accept US players in defiance of the UIGEA. In contrast, Partygaming took the decision to pull out of the US market in 2006 after agreeing a non- prosecution agreement with the U.S. Department of Justice (DOJ).
Looking forward, however, PartyGaming said in light of its settlement with the DOJ it is better placed than other companies to exploit an opening in the US market if online gambling is eventually legalised in the US. Commenting on the matter, CEO Jim Ryan said:
“In the US we believe there is growing political and commercial will to regulate online gaming and that we are well-positioned to exploit our strong franchise in that market should regulations allow.”
Other optimistic news as far as investors are concerned is that PartyGaming’s proposed merger with bwin is on target to be completed soon with shares in the new bwin.party digital entertainment plc operation expected to be available by March 31st.
The first two months of 2011 have also started well for PartyGaming and the company’s shares have risen 3% today to 180.40 currently valuing the company at around £715.9 million ($1.17 billion).