by: Gene Koprowski.
London-based PartyGaming Plc reported a 56 percent plunge in annual net profits this week following the U.S. government's decision to ban Internet gambling, but told investors its moves to find revenue elsewhere are beginning to "bear fruit."
PartyGaming PLC Efforts to Find New Revenue 'Bearing Fruit'
London-based PartyGaming Plc reported a 56 percent plunge in annual net profits this week following the U.S. government's decision to ban Internet gambling, but told investors its moves to find revenue elsewhere are beginning to "bear fruit."
"Whilst the decision to stop accepting customers from the U.S. was a bitter blow for our business, our continuing operations have grown strongly from the lows reached in November 2006, benefiting from the rapid reorganization of our business and the acceleration of our efforts in international territories," said Mitch Garber, chief executive officer of the firm.
PartyGaming pulled out of the lucrative U.S. market in October after the government shut down the industry there, unveiled a 2006 net profit of $128.4 million -- or €97.2 million -- down from $293.2 million in 2005.
Revenue rose 12 percent to $1.1 billion -- €830 million -- from $977.7 million.
Discounting the company's defunct U.S. operations, underlying profit from continuing operations jumped more than twofold to US$50.9 million -- €38.53 million -- in the 12 months ended Dec. 31 from $19.7 million a year earlier, empowered by its European operations.
Though there was some concern after the U.S. passed an anti-gambling ban last fall, and President Bush signed the law, that the industry would be devastated.
That is proving to be an incorrect presumption; however, as a number of firms are reporting strong results and increased customers for online gaming, and new countries are seeking to legalize the form of entertainment, including Indian reservations in Canada.
© Copyright 2007 Gambling Central's material. It may not be published, broadcast, rewritten, or redistributed.
|
|
$500 Special Welcome Bonus!
|
[ Back ]
|
![[ Enlarge Image ]](images/public/blog/original_partygaming_revenue.jpg){kind=link}