Party Gaming records 6.5 pc slide in operating profit

Party Gaming records 6.5 pc slide in operating profit

August 28, 2009.

Online gambling group PartyGaming has released its first half results, showing a 6.5 percent fall in operating profit, which management has attributed to competitive pressures and the consumer slowdown.

However, the group offered the more encouraging news that trade in the last three weeks had been strong. In the three weeks to August 18, the average gross daily revenue was $1.9 million, whilst average active poker players totalled 51 000 per day.

The group posted an H1 2009 operating profit of $60.7 million on revenues down 21 percent at $201.3 million for the six months to the end of June.

Management recapped on its non-prosecution agreement with U.S. authorities, which confirmed Party Gaming would not be prosecuted for its activities prior to the passing of the Unlawful Internet Gambling Enforcement Act in October 2006.

As part of the agreement PartyGaming said it would pay U.S. authorities $105 million over a 42-month period, which resulted in a first-half pretax loss of $66.9 million compared with a profit of $22.7 million in the same period last year.

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