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Date: 2008-08-29
Author: Nick L.
Business, business, business – with the gaming market spiking from Olympic sports betting and the beginning of the ESPN broadcast of the 2008 World Series of Poker, many gaming entities are reporting significant revenue news for the 2008 fiscal year to date. Here’s what’s happening:
- PartyGaming plc, owner and operator of PartyPoker.com, PartyBingo.com and multiple media outlets, has reported a 17% gain in 1Q and 2Q 2008 net revenues over the previous year. Tremendous growth in Europe and Asia – particularly Germany – has spelled out a $254.8 million USD net profit for the first 6 months of 2008 for PartyGaming. PartyGaming CEO Jim Ryan echoed his company’s business approach following the loss of American players and a 65% loss in company value on October 13, 2006 when speaking on the recent successes of PartyGaming, “PartyGaming is a company that has transformed itself into a truly international business. The Group’s performance over the first six months of the 2008 is a testament to that transition.”
- In the wake of weakened monopoly Svenska Spel, European gaming entity, RedBet has experienced a nearly 400% increase in 2008 revenues versus 2007 revenues for the same period. RedBet, who now does the brunt of its business in Sweden, is reporting €10.30 million in revenues for the first six months of 2008 along with a net profit of €1.46 million as opposed to revenues below €3 million and profits at a net loss of €200,000 for the same periods in 2007.
- 888 Holdings has now posted a 7th consecutive business quarter of growth leaving the skyrocketing company less than 20% shy of its entire 2007 revenue total in just the first 6 months of 2008. Traded as 888 on the London Stock Exchange, 888 Holdings CEO Gigi Levy, has attributed the meteoric rise in 888 business to proliferation of product: “From being a provider of Casino, Poker, and partially Bingo in 2007, we are now a comprehensive provider of all gaming segments, including the four cornerstones of online gaming – Casino, Poker, Sportsbetting and Bingo –and additional niche products like Live Dealer Casino and Backgammon.”
- Irish Gaming Giant, Paddy Power is announcing a 6% increase in 2008 revenues and a subsequent 10% growth in operating profit over the same period in 2007. Profits for the publically traded stock (LSE:PAP) were spread across many sectors: 14% growth in sports betting to €31.1 million and 2% growth in retail business to €84.5 million to combine for the brunt of a €151.8 million in 2008 revenues to date and a €45.1 million operating profit. Paddy Power CEO, Patrick Kennedy on the connection between digital and physical sportsbooks: “Broadly half our profits come from the fast growing online betting and gaming market, we will continue to lead and differentiate ourselves in the Irish Retail market, whilst our expectations for the potential size of our UK Retail estate has increased to at least 150 shops by 2011.”
- Like RedBet, European gaming entity, Entraction Holding AB has experienced a spike in business due to the opening up of the Swedish market. Driven by a 268% increase in Casino games and a 7.7% increase in new customers, Entraction has announced that the 2Q of 2008 was the single most profitable quarter in the history of the young company at a final net profit tally of €1.68 million. With plans to go public with a Bingo system in September of 2008, Entraction is yet another gaming company set to play with house money for the second half of 2008.
- Of course, not every business is booming. Following a 95% drop in share value over the past year, Betbrokers plc has been placed under Administration. With the share price listed at 15 pence on the London Stock Exchange, Betbrokers is precariously close to total liquidation. For more on the financial woes of the owner of the Boss Media skin St. Minver, follow this link: Betbrokers in Trouble.
And that’s what’s happening in poker.
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