PartyGaming: Online poker has a bright future
British gambling firm PartyGaming predicts online poker will make a big comeback
|by The Suited Connector||August, 6th 2010||
Above: Partygaming believes online poker has a bright future
PARTYGAMING, the world's largest gaming group, today predicted online poker would make a big comeback later this year.
The company, which is set to merge with Austria's bwin, reported a 14 per cent rise in half-year profits and claimed poker would surge in popularity again from September onwards.
The online game has suffered from anti-gambling legislation in the United States and been flat this year as poor economic conditions and the football World Cup in South Africa kept players away from the firm's Party Poker tables.
But Chief Executive Jim Ryan said the outlook was now much brighter - both for his new, enlarged company and for online poker generally.
He said: The macroeconomic and competitive environments remain challenging, [but] we remain confident about the group's prospects for the rest of the year and beyond."
The merged PartyGaming/bwin venture will create the world's largest gambling company worth about £2billion if it goes ahead as expected early next year.
Ryan added: "We have continued to consolidate our position as the world’s largest online casino"
"The [merger] will widen the gap between the combined company and the rest of the market.
"We will have the size, scale and management to continue our leadership."
PartyGaming reported underlying earnings of EUR 48.1 million in the six months to June 30, up from EUR 42.3 million in the same period last year.
Revenue increased to EUR 181.2 million euros, with casino, bingo and sports betting helping to offset the weaker performance of poker during the World Cup in South Africa.
The company said it will not be paying a dividend as that would be "imprudent" as it seeks to finalise the merger with bwin and seeks further acquisitions in the online gaming sector.
The new merged operation is thought to be considering buying other gambling companies in France, Italy and Denmark.