Party: trading solid, merger on track
PartyGaming's merger with Bwin will complete by March 2011, reiterated the operator in its pre-close trading update this morning.
PartyGaming has reported “solid” trading in its pre-close update this morning, and reiterated that its merger with Bwin remains on track to complete by March 2011.
Casino has been the strongest performing channel, said the operator, with double-digit growth in average daily gross revenue compare to the third quarter, due to growth in both turnover and hold.
Poker average daily gross revenues also grew quarter-on-quarter, but with a less pronounced seasonal uplift year-on-year due to the strengthening of the euro against the dollar. Bingo revenues however dipped below third-quarter levels due to the strengthening of the euro over pound sterling and players in its core UK market reducing spend in the run-up to Christmas.
Chief executive Jim Ryan (pictured) welcomed the usual seasonal upturn in fourth-quarter revenues, and told the markets that the merger with Bwin remained on track to complete by March 2011.
“The proposed merger with Bwin remains on-track to complete at the end of the first quarter and should place the combined group in a strong position to take advantage of the changing regulatory landscape in Europe given its leadership positions across all key product verticals.”
The operator however warned that it looked to enter an increasing number of these territories across Europe, such as Germany, Greece, Holland, Denmark and Spain, this would require “additional gaming taxes and investment” on its behalf to ensure that “long-term revenue potential is maximised”, to the potential impairment of the group’s bottom line.
The Gibraltar-based group added that it remained well positioned to take advantage of potential egaming regulation at either federal or state level in the US: “Should the requisite legislation be enacted, the Group is well advanced in discussions with licensed companies in the US that could create substantial value for the group’s shareholders”, it said in its statement.