The Gibraltar-based online gambling group Party Gaming plc has posted posiive third quarter 2009 results, boosted by the acquisition of Cashcade, with the following highlights:
* Total revenue of $112.7 million (2008: $117.7 million) up 11 percent versus Q2/09 despite the traditionally slow nature of Q3, due mainly to bingo revenues from recently acquired Cashcade;
* Online Poker revenue of $45.1 million (2008: $65.0 million) down 8 percent on Q2/09 with higher player numbers offset by lower yields;
* Online Casino revenue of $49.2 million (2008: $45.6m) up 2 percent versus Q2/09 due to higher player yields;
* Sports betting revenue of $4.2 million (2008: $5.1 million) up 31 percent versus Q2/09 with an improved gross win margin despite poor sporting results
* Online Bingo revenue of $13.8 million (2008: $2.0 million) driven by the Cashcade acquisition.
* 208 000 new player sign-ups, a 51 percent increase over the same period the previous year (2008: 137 600), following the launch of new marketing campaigns for both PartyPoker and PartyCasino under the "FEEL IT" tag-line. The number of consolidated active player days and unique active players grew by 24 percent and 35 percent respectively versus 2008 helped by the acquisition of Cashcade.
Management revealed that the group has made a strong start in Q4/09 and the Board is confident on the it's full year prospects.
Commenting on the third quarter KPIs, Jim Ryan, Chief Executive Officer, said:
"Our performance in the seasonally weak third quarter was in line with our expectations, with revenue up 11 percent versus the previous quarter.
"Casino once again delivered a robust performance with solid growth in player yields. We have increased the gross win margin in sports betting and remain focused on operational improvements to enhance the quality of our product and risk management tools.
"Poker remains challenging from a competitive standpoint, but we are encouraged by the increased player traffic during September and into October on the back of our new retention initiatives such as the enhanced loyalty programme, improved VIP offer and automated reactivation campaigns.
"Finally, the addition of Cashcade transformed our presence in the $1.5 billion online bingo market and was the driver behind the substantial increase in our bingo revenue.
"Our strategy is to drive both our B2C and B2B offerings and become a top three player in all of our product verticals. Having launched sites on behalf of four new customers in the quarter, our B2B strategy is progressing well. The important fourth quarter has started strongly, as expected, and we remain confident about the full year outlook."