Party Gaming, 888 Holdings and Playtech published their financial results for Q3 09. All companies showed decreasing income compared with last years results, but some recuperation compared with 2009 second quarter.
Gambling Giants Party Gaming (PRTY.L), 888 Holdings (888.L) and Playtech (PTEC.L) released their Q3 2009 interim financial results. Although all 3 players presented decreasing revenues, compared with last year’s results, it seems that deterioration in revenue, experienced by the gambling industry in the past year may have subsided – the companies showed no (Party Gaming and 888) or a small (Playtech) revenue decrease between Q2 09 and Q3 09.
The poker business was a major setback in the last year for Party Gaming (decreasing 31% from Q3 08 and 8% from Q2 09) and 888 (decreasing 28% from Q3 08, no change from Q2 09). Playtech’s poker business actually grew from Q3 08 by 8%. On the other hand, it was Playtech’s casino operations that experienced a revenue decline, 10% from Q3 08, while Party Gaming Casino grew 8% at the same period. 888 casino operations decreased from Q3 09, but remained constant between Q2-Q3 09.
With the poker business struggling, companies used alternatives paths for growth. 888 continued to develop its growing B2B business, Dragonfish, while Party Gaming turned to Bingo, through CashCade purchase.
The companies demonstrated satisfaction with the results, and were optimistic as for the future of their operations.
888’s CEO Gigi Levy commented on 888 results, saying: “We are pleased with the results achieved during the third quarter. Our B2C business showed resilience during the historical seasonally weak summer period and Dragonfish has continued its impressive growth. With Harrah’s set to launch in coming days and a strong pipeline, we remain confident of reaching our targets.”
Detailed results:
Party Gaming
Party Gaming, operator of partypoker.com and partycasino.com presented an income of $112M. This means a 5% decrease compared to Q3 08 and an 11% increase compared to Q2 09. Cashcade Bingo business purchase, worth around $12M was a major growth driver for the company’s revenues. The poker business showed a steep 31% decline from Q3 08 and 8% decline from Q2 09. Its’ $49M casino business showed a revenue increase, up 8% from Q3 08 and 2% from Q2 09. This trend represents Party Gaming business situation for months now. Its poker business has been declining since the start of 2008, while its casino business has seen a continuous revenue increase since its 2005 launch. This is the first time, however, when casino revenue bypassed poker revenue.
888
888 Holding is the owner of casino 888.com and poker room Pacificpoker.com. Its Q3 09 $61M income represented a10% decrease from Q3 08. Revenue remained constant compared with Q2 09. The decrease was triggered by 888 casino and poker B2C, although its poker business suffered more. Compared with Q3 09 its $12.5M poker business experienced a 28% decline and its $30M casino business a 16% decline. No changes occurred from Q2 09 revenue in neither business. The company also operates a successful, growing B2B business, which recently scored a mega deal with Gambling giant Harrah’s. The B2B is marked as a substantial growth engine for 888.
Playtech
Playtech, the leading software developer for the gaming industry and owner of the ipoker network, showed a relatively small revenue decline in the past year. Its €27.6M Q3 09 revenue (excluding William Hill revenue) represents a 3% decline from Q3 08, and no change from Q2 08. While Playtech’s €18.5M casino business experience a 10% decline from Q3 08, it has not seen any change from Q2 09. Unlike its competitors, Playtech’s €8M poker business experienced 8% increase from Q3 08, but a 3% decrease from Q2 09. Playtech reported that the implementation of William Hill, its new sports betting subsidiary is progressing well, despite a decrease in William Hill’s revenue, stemming from reduction in sports betting margins.
