April 30, 2008

Party on track and confident for 2008

PartyGaming’s first quarter and key performance indicators published this morning revealed group revenue rose 21% to US$128.9mm, compared with US$106.2m on the same period last year, poker revenue was up 13% to US$80.7m, compared with US$71.6m last year, casino revenue was up 45% to US$43.5m, compared with US$30m last year. Sports betting revenue grew 4% to US$4.7m on US$4.5m in 2007.

Yield per active player day was up 19% to US$17.3, compared with US$14.5m in 2007, thanks to the group’s casino performing strongly, but real money sign ups dropped 30% to 171,800, compared with 244,600 in 2007. This was because of Party’s aggressive marketing strategy to boost player liquidity after the Unlawful Internet Gambling Enforcement Act, the company said. Party also paid the final consideration of €21m to Trident Gaming with regard to the acquisition of Gamebookers on 1 February 2008.

Mitch Garber, chief executive of PartyGaming, said: “As we enter the seasonally quiet period of the year, the business is performing well and there are a number of exciting developments in prospect. Over the next few months we will open our licensed Italian business, introduce a number of new branded online slot machines, and launch a completely new product vertical. The regulatory environment in Europe appears to be improving and the search for my successor is progressing and advancing positively. We remain confident about the group’s prospects for the full year.”