PartyGaming Plc (PRTY), the Internet online gambling company planning to merge with Bwin Interactive Entertainment AG, made an announcement of a full year profit as revenue has substantially grown in the casino and bingo gaming sector.
The overall income for the company was reported at being 38.9 million euros ($54 million net), or 9 cents a share. This is compared with the 18.5 million euro loss, or a loss of about 4.5 cents a share from the previous year as reported by the company. The Gibraltar company also stated that sales were on the rise from 15% to over 350 million euros.
The company will officially be called Bwin.party digital entertainment Plc after the final deal is made on March 31st. They’ve combined with Bwin to ease their way into the Euro market as online gambling becomes more regulated and legalized. PartyGaming has been adding more business like casino and bingo since competition from companies that accept American bets have hurt their poker business.
“Casino has shown good growth and is developing successful games in-house,” wrote three Numis analysts led by Ivor Jones. They have a “buy” recommendation on PartyGaming. “Bingo is growing and ready to roll out across Europe.”
CEO Jim Ryan noted on a conference call that PartyGaming is fully confident that it can meet their projected targets of post-merger savings of 55 million euros annually by the time 2013 comes around.
They’ve already spent near 25 million euros entering the fresh online gambling arenas of Italy and France, as was told by Martin Weigold, Finance director for the company.
Also in the news is Denmark, who is expected to permit online gambling by the end of the year as well. Ryan said that Greece, Netherlands, Germany and Spain are to follow Denmark.
General revenue from Poker fell 8% to 125.9 million euros. PartyGaming is hoping to ease the decline by year’s end, commented Ryan. As noted by Weigold, the company has raised incentives to 25% as of last year to maintain people on site.
Bingo revenue more than doubled itself to over 52 million euros, while general casino sales rose 11% to over 150 million euros as stated by the company.
The losses that were incurred by the company the year before included payments that were owed towards a non-prosecution agreement with the American Justice Department due to the operations of the company prior to 2006, back when the country prohibited web betting of any kind.
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