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Interim results for the six months to 30 June 2009
28 Aug 2009
28 August 2009
PartyGaming Plc
Half year report for the six months to 30 June 2009
| Financial summary (unaudited) | ||
| Six months to 30 June | 2009 | 2008 |
| $million | $million | |
| Net revenue | ||
| Poker | 102.6 | 153.9 |
| Casino^ | 89.3 | 89.5 |
| Sports Betting | 7.7 | 8.9 |
| Bingo^ | 1.7 | 2.5 |
| Total net revenue | 201.3 | 254.8 |
| Clean EBITDA* | ||
| Poker | 25.7 | 36.0 |
| Casino^ | 36.0 | 26.7 |
| Sports Betting | 1.5 | 1.2 |
| Bingo^ | 0.2 | (0.1) |
| Unallocated Corporate | (2.7) | 1.1 |
| Total Clean EBITDA* - Continuing operations | 60.7 | 64.9 |
| Total Clean EBITDA* - Discontinued operations# | (0.7) | (4.0) |
| Total Clean EBITDA* | 60.0 | 60.9 |
| Profit from operating activities - Continuing operations | 36.8 | 27.8 |
| Profit before tax - Continuing operations | 38.0 | 30.3 |
| Profit after tax - Continuing operations | 35.2 | 26.7 |
| (Loss) Profit after tax | (66.9) | 60.9 |
|
| |
| Clean EPS* (cents) - Continuing operations | 9.7 | 10.6 |
| Basic EPS (cents) - Continuing operations | 8.7 | 6.6 |
| Clean EPS* (cents) | 9.6 | 9.6 |
| Basic EPS (cents) | (16.5) | 5.6 |
^ During the first half of 2008 $0.5m of Casino revenue was generated from the Bingo platform. This is now reported as Bingo revenue. Associated costs of $0.2m have also been reallocated.
* EBITDA/EPS before the provision for costs associated with the Group’s Non-Prosecution Agreement and before non-cash charges relating to share-based payments (see reconciliation of Clean EBITDA to operating profit below).
# Operations located physically outside of the US but which relate to US customers that were no longer accepted following the enactment of the UIGEA.
- Continuing revenue in-line with market expectations at $201.3m (2008: $254.8m) reflecting currency movements, competitive pressures in poker and consumer slowdown
- Continuing Clean EBITDA* slightly ahead of market expectations at $60.7m (2008: $64.9m); total Clean EBITDA down 1% to $60.0m (2008: $60.9m)
- Non-Prosecution Agreement reached with the US Authorities resulting in loss after tax of $66.9m (2008: profit of $22.7m) due to full provision for $101.0m settlement (2008: nil)
- Clean EPS* down 8% to 9.7 cents (2008: 10.6 cents); total Clean EPS unchanged at 9.6 cents; total basic loss per share of 16.5 cents (2008: EPS 5.6 cents)
- Significant progress in B2B with four new deals signed
- Acquisition of Cashcade after the period end
- Trading since 30 June 2009 has been strong in line with management’s expectations
Commenting on today’s results announcement, Jim Ryan, PartyGaming Chief Executive Officer, said:
“As expected this has been a challenging first half given year-on-year currency movements, competitive pressures and the impact of the macroeconomic downturn. While revenues have fallen year-on-year, we have seen a corresponding benefit of currency movements on our cost base, and this along with the benefits of our cost reduction programme put in place last year, has meant that we have been able to mitigate most of the impact on Clean EBITDA.
“With second quarter average daily revenue up 17% on the previous quarter, casino has been our star performer and continues to go from strength-to-strength, consolidating our position as the world’s leading online casino. During the period, over 60 new games were added in addition to the launch of our dedicated casino affiliate and marketing programmes, all of which were contributors to the strong performance of casino. While poker continues to face competitive challenges from the US-facing sites, the launch of our Italian poker network and a much improved loyalty programme and retention process has seen poker numbers stabilising in the second quarter with unique active players 5% ahead of the first quarter, despite the second quarter being a seasonally quiet period.
“Our B2B strategy has delivered four deals so far this year that will start to contribute during the final quarter of 2009. With more deals in the pipeline we remain confident that we can continue to grow this important new source of revenue.
“With many of our competitors still to resolve their legacy issues with the US authorities, we have sought to take advantage of the window of opportunity that now exists to consolidate the market at sensible prices. Our acquisition of Cashcade that was completed in July 2009 gives us a market leading position in the $1.5 billion global online bingo market, one that we aim to exploit to the full.”
On current trading Jim Ryan added:
“In the three weeks ended 18 August 2009, which represents the peak holiday season in most of the Group’s core markets, trading has been strong, in line with management’s expectations: including Cashcade, average gross daily revenue was up 32% versus the average for the previous quarter to $1,923,700 (Q2 09: $1,453,600). In poker, new player sign-ups averaged 1,300 per day and there were on average 51,000 active players per day, generating average gross daily revenue of $642,900. In casino, average gross daily revenue was $713,200, in bingo it was $510,800 while in sports betting, average gross win per day was $56,800.
“The Group continues to make good progress in 2009 despite a challenging business environment. Our three-year strategy is on track. Given our robust trading performance and outlook, we remain confident about the Group’s prospects and look forward to the rest of the year with confidence.”
Contacts:
| PartyGaming Plc | +44 (0) 207 337 0100 |
| Peter Reynolds, Corporate Affairs | |
| John Shepherd, Corporate Communications |
Analyst meeting, webcast, dial-in and conference call details: 28 August 2009
There will be an analyst meeting for invited UK-based analysts at Numis Securities, The London Stock Exchange Building, 10 Paternoster Square, London, EC4M 7LT starting at 9.30am BST. There will be a simultaneous webcast and dial-in broadcast of the meeting. To register for the live webcast, please pre-register for access by visiting the Group website (www.partygaming.com). Details for the dial-in facility are given below. A copy of the webcast and slide presentation given at the meeting will be available on the Group’s website later today.
An interview with Jim Ryan, Chief Executive Officer and Martin Weigold, Group Finance Director, in video/audio and text will also be available from 7.00am BST on 28 August 2009 on: http://www.partygaming.com and on http://www.cantos.com/.
| 9.20 am | Please call +44 (0)20 8609 0582 (UK) |
| Title | PartyGaming Interim Results |
| 9.30 am | Meeting starts |
A recording of the meeting will be available for a period of seven days from 28 August 2009. To access the recording please dial the following replay telephone number:
| Replay telephone number | +44 (0)20 8609 0289 |
| Replay passcode: | 270027# |
All times are British Summer Time.
About PartyGaming Plc
PartyGaming Plc is the world’s leading listed online gaming company. The Group is a constituent of the FTSE 250 share index with its shares listed on The London Stock Exchange under the ticker: PRTY. In the year to 31 December 2008, PartyGaming’s Continuing operations generated revenues of $472.9m and Clean EBITDA of $144.2m. PartyGaming’s principal brands are PartyPoker.com, one of the world’s largest online poker rooms, EmpirePoker.com, PartyCasino.com, PartyBingo.com, PartyGammon.com, PartyBets.com, PartyMarkets.com, FoxyBingo.com, ThinkBingo.com, BingoScotland.com, CheekyBingo.com, GetMinted.com and Gamebookers.com. None of the Group’s sites accepts real money customers located in the US. The Group is a responsible gaming operator as recognised by GamCare a leading responsible gaming charity in the UK.
PartyGaming is regulated and licensed by the Government of Gibraltar and by the Alderney Gambling Control Commission and is certified by GamCare as a responsible gaming operator and is also a constituent member of the FTSE4Good Index of companies. For more information, please visit www.partygaming.com.