Saturday, October 17, 2009

Party Gaming Revenue Down 4% in Q3 2009, by Tom Jenkins - 16th October 2009

In figures recently released by Party Gaming, the parent company of PartyPoker, revenues were off 4% in Q3 2009 compared to Q2. Company officials noted that the decrease was “in line with the normal seasonal pattern seen in previous years.”

The acquisition of Cashcade actually ballooned Party Gaming’s revenue to $112.7 million during the third quarter, up 11% from Q2. However, removing Cashcade’s impact meant that revenues decreased 4%. PartyPoker revenues were $45.1 million during the most recent three-month period, a slide of 8% versus Q2. Party Gaming management attributed the fall to “higher player numbers offset by lower yields.” The $45.1 million in poker revenue represented a significant dip from the $65.0 million reported in Q3 2008.

PartyCasino’s revenue clocked in at $49.2 million, up 2% from the previous quarter, and the company’s sports book revenue registered at $4.2 million, up 31%. The company reported Bingo revenues of $13.8 million, nearly seven times the total accrued by the division during the same period last year. Party Gaming CEO Jim Ryan commented in the company’s release to the London Stock Exchange, “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 program, improved VIP offer, and automated reactivation campaigns.”

Party Gaming boasted a base of 7.3 million users in 2009, up 24% from the 5.9 million users it placated to in 2008. The online giant played host to 79,200 average daily players, up from 63,900 in 2008, or 24%. However, its yield per active player day was down significantly in the third quarter of 2009 to $15.40, a slide of 23% year over year and 11% quarter over quarter. The company blamed the dip on “higher bonus costs driven by the acquisition of Cashcade and the costs associated with the new retention initiatives.”

A total of 208,100 new real money sign-ups occurred during Q3 2009 company-wide, a climb of 51% from the 137,600 who registered during Q3 2008. The number of unique active players during the period was 726,300, up 35% from 2008, and the company reported average daily net revenue of $1.2 million, down 5% from 2008, but up 10% over the previous quarter.

All told, PartyPoker boasted 4.6 million active players during the third quarter of 2009, a slide of 2% year over year. The online poker site, which does not accept customers from the United States, hosted 50,400 daily average players, even with 2008 figures, and a $9.70 yield per active player day, down 31% from the $14 recorded last year. PartyPoker saw 120,100 new real money sign-ups during the third quarter, up a colossal 30% from the 92,100 who signed up during Q2 2008. PartyPoker had average daily net revenues of $489,700, a dip of 31% year over year and 9% quarter over quarter.

Company officials explained the poker business unit’s lackluster performance: “Despite the competitive challenges in poker, we continued to sign up large numbers of new players and achieved an absolute increase in player numbers versus the previous quarter despite seasonality. Player yields declined year-on-year due to foreign exchange movements as well as competitive pressures.” On Thursday, it was announced that PartyPoker Ambassador Mike Sexton is the lone member of the Poker Hall of Fame Class of 2009. The World Series of Poker (WSOP) bracelet winner has served as the host of the World Poker Tour (WPT) since it debuted on The Travel Channel in the United States in 2003.

According to, PartyPoker is the fourth largest online poker site worldwide, featuring a seven-day running average of 5,200 real money ring game players. During its peak hours, which occur in the evening throughout Europe, over 10,000 cash game players can be found on its felts. Party Gaming is traded on the London Stock Exchange under the symbol “PRTY.” (Credit: Poker News Daily)

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