PartyGaming promises further M&A after muted H1 figures
PartyGaming pledged further acquisitions today as the Gibraltar-based operator revealed half-year results showing revenue and earnings before interest tax depreciation and amoritsation (EBITDA) both down on the same period last year.
PARTYGAMING PLEDGED further acquisitions today as the Gibraltar-based operator revealed half-year results showing revenue and earnings before interest tax depreciation and amoritsation (EBITDA) both down on the same period last year.
The figures showed PartyGaming’s first-half revenue down by more than a fifth (21%) on the same point in 2008, to $201.3m from $254.8m. The company attributed half of the falling off to the strength of the US dollar, which reduced the value of income in euros and pounds.
EBITDA’s dip was more moderate, falling 1.5% to US$60m from US$60.9m. Within that total, casino experienced a rise of 34% to $36m, from $26.7m at mid-year 2008, which helped to cushion a fall in poker, the company’s other key vertical, of 29% to $25.7m, from $36m at H108.
As reported on EGRmagazine.com, in April PartyGaming reached a US$105m settlement with the US authorities over its online gaming activities prior to the passing of America’s Unlawful Internet Gambling Enforcement Act (UIGEA) in October 2006, stating that the “commercial logic” of the deal meant Party could now pursue merger and acquisition activity. “It opens the capital markets to us to enable us to pursue acquisitions we otherwise wouldn’t have been able to,” chief Executive Jim Ryan said today.
Deals since have included PartyGaming’s push to dominate bingo via its £80m+ purchase of bingo business Cashcade in July as well this month’s £12.3m acquisition of World Poker Tour parent company WPT Enterprises, and PartyGaming has a war chest of US$40m to spend on further acquisitions in online bingo, sports betting, casino and poker, Ryan said today.