Partygaming Share Discussion Threads

[bleepy] 17/12/2010 07:41

RNS Number : 1482Y
PartyGaming Plc
17 December 2010

PartyGaming Plc

("PartyGaming" and, together with its subsidiaries, the "Group")

Pre-Close Trading Update

Ø Revenue overall has been in-line with expectations with a strong performance in casino mitigated by a softer seasonal performance in poker and bingo

Ø Clean EBITDA margins for 2010 expected to be in-line with previous guidance

Ø Prospective regulation in new markets offers exciting medium to long-term revenue
potential that may require additional investment

Ø Merger with bwin remains on track


Trading since the end of September 2010 has been solid overall with a particularly strong performance in casino that has enjoyed double-digit growth in average daily gross revenue versus the third quarter, driven by growth in both turnover and hold. Poker has also seen growth in average daily gross revenue over the third quarter, although the usual seasonal pickup has been less pronounced than in previous years due to the strengthening of the euro against the US dollar. In bingo, average gross daily revenue has grown versus the current trading data reported at the time of our Q3 KPIs, but remains lower than the third quarter. This is due to the strengthening of the euro against sterling and seasonality, as UK-based bingo players typically reduce their spend in the run-up to Christmas. While sports betting has continued to deliver a solid performance in the period, the benefit of the World Cup during the third quarter as well as a favourable series of results for punters has meant that average daily gross revenue in sports is down versus the third quarter.

In respect of margins, we expect that full year Clean EBITDA margins for 2010 will remain in-line with our previous guidance of between 27% and 28%.

An increasing number of territories are now actively exploring the merits of a regulatory framework for online gaming. In Europe, the Group is continuing to monitor closely Germany, Greece, Holland, Denmark and Spain as well as other countries. Whilst the shape and scope of any such regulations is not yet known, should some of these markets move to regulate, additional gaming taxes and investment may be required to ensure that the Group's long-term revenue potential is maximised.

There continues to be much movement in the US towards regulating online gaming both at the Federal and State level. Should the requisite legislation be enacted, the Group is well advanced in discussions with licensed companies in the US that could create substantial value for the Group's shareholders.


Proposed Merger with bwin

It is expected that the shareholder documents associated with the proposed merger will be issued shortly with an extraordinary general meeting of shareholders expected to be convened for late January 2011. The proposed merger remains on course to complete during March 2011.

Commenting on today's announcement, Jim Ryan, Chief Executive Officer, said:

"Revenues in the fourth quarter have enjoyed their usual seasonal upturn. Casino has performed particularly strongly with double-digit revenue growth over the third quarter, although currency movements meant that the uplift in poker has been less pronounced than usual. Clean EBITDA margins are expected to be in line with our previous guidance for 2010.

"The proposed merger with bwin remains on-track to complete at the end of the first quarter and should place the combined group in a strong position to take advantage of the changing regulatory landscape in Europe given its leadership positions across all key product verticals."

Contacts:

PartyGaming Plc
[phone]

Peter Reynolds, Director of Investor Relations

John Shepherd, Director of Corporate Communications

This information is provided by RNS
The company news service from the London Stock Exchange

END

[wardy3] 17/12/2010 07:29

Business looks ok steady as she goes , certainly nothing bad in the report.

[salpara111] 16/12/2010 13:39

high degree of nervousness today ahead of trading update.
I guess that Betfair did not set the stage well.
As far as I can see the whole internet gaming industry is slowly being strangled by national interests/monopolies or cash strapped states setting tax/regulations at punitive levels.
The problem with this is that these companies have traditionally been rated as growth stocks and that growth story seems to be ebbing away.
I actually hold William Hill as it trades on a p/e substantially lower than PRTY 888 etc and pays a decent divi.
I am watching this because if tomorrows results are good there will be a decent bounce.

[wardy3] 16/12/2010 09:25

Any ideas why this is being driven down?

[srpactive] 15/12/2010 16:15

early 2011 I believe.

[tines] 14/12/2010 13:41

when are bwin and prty going to tie the knot? anyone know? thanks

[hubshank] 13/12/2010 13:38

Thank you bleepy, your posts are informative as always. His hoping for a happy Xmas

[bleepy] 11/12/2010 10:02

Hubshank

The US complies with WTO if they or a State allow their operators to be licenced and only accept US/State customers(they would not comply by accepting foreign customers).
They would also comply if they allowed both foreign operators(licenced) and foreign customers.

[wardy3] 10/12/2010 15:59

Bought in today see that news as having a positive effect on the share price here.

[bleepy] 10/12/2010 15:48

Hubshank,Reid has hatched a bill at the last minute(or so we are led to believe) to appease his Vegas backers.What has happened to Barney Frank's bill that was expected to be given a chance of passing during the lame duck seesion,given that it already has had a fair hearing and ammendments added to suit most.
Is Reid's bill being used as a distraction to get Frank's bill throught the back door unnoticed.We've got just 7 days to find out i guess.

[bleepy] 10/12/2010 15:17

Hi Hubshank,read the following,link below extract....

"Other countries within the European Union have attempted to regulate only online gaming sites licensed in their country, and the European Court of Justice has been called on to rule on the legality of keeping foreign companies out. Each country has had separate details that they have argued.

Portugal, successfully defended their right to an online gambling ban last year, when they claimed that domestic crime was up and that online gambling would create a bigger problem."




The following came from the EGBA this morning,upto this point i think they have all been agreeing to disagree...


101210-Regulatory progress in sight for online gambling

Brussels, 10 December 2010

EU ministers have acknowledged for the first time that a purely national approach is insufficient to deal with online gambling, paving the way for increased cooperation at the European level.

The Council Conclusions on the Framework for Gambling and Betting in the Member States of the European Union published today, represent a landmark in the policy discussion surrounding online gambling. This is the first unanimous position that Member States have reached since they began debating online gambling in the Council in 2008. It will provide additional impetus to the recently announced Commission´s Green Paper consultation

[hubshank] 10/12/2010 12:47

Hi Bleepy, am I being particularly thick? reading that article it says the WTO would have a problem with New Jersey legalizing on line gaming, however the WTO from memory ruled against the UIGEA, so presumably they would support a step in the right direction. what am I missing?

[yesrupnel] 10/12/2010 08:08

richaims FILTERED

[mechanical trader] 10/12/2010 08:01

Hoping to see stock share price bounce off
support here today.

[mechanical trader] 10/12/2010 01:18

Broker upgrade.


PartyGaming FTSE 250 Consumer, Cyclical

Buy 320 241.6 32.5% Collins Stewart

320p share price target 32.5% increase.

[mechanical trader] 09/12/2010 12:53

should bounce from the support line here at
241p.

[old joe1] 09/12/2010 09:51

Moving up strongly intraday.

[richaims] 09/12/2010 02:24

guidfarr/brownie69

I've started a new thread! :