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Partygaming profits up 47 percent

Fri, 8 Sep 2006 , InfoPowa News Send page to friend Bookmark page Smaller font Larger font Printer friendly

Online gaming group PartyGaming reported a 47 percent increase in its first-half profit this week and revealed that recent acquisition, Gamebookers was exceeding expectations.

Reuters reported that Party Gaming Chief Executive Mitch Garber said the main focus was expanding internationally to reduce the group's dependence on the risky U.S. market, where some politicians are trying to ban online gaming. "The most fundamental part of our strategy is to develop our non-U.S. business," he told reporters.

"Efforts to drive our existing business include ... the development of strategic partnerships that provide access to new geographic markets," he added. "I hope to be able to say more on this over the coming months."

Revenues from outside America had increased 151 percent as the group continued to reduce its dependence on the US gambling market.

The owner of the PartyPoker and PartyCasino Web sites said first-half underlying earnings before interest, tax, depreciation and amortization (EBITDA) rose to $380 million (GBP 202 million) from $257.7 million a year earlier.

Garber also told reporters that Europe-focused sports betting business Gamebookers, which PartyGaming bought for Euro 102 million ($131 million) last month, was doing better than expected. "It's everything I'd thought it would be and more," he said, adding that cross-selling of Internet gaming between Gamebookers and other Party-branded sites had not even started yet.

"On a standalone basis, without cross-promoting, it's over-performing," he said.

When asked whether he was bidding for Victor Chandler, which bankers say could fetch 300 million to 400 million pounds ($565 million-$750 million), he said: "No. Definitely not."

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