PartyGaming Sees 4th Quarter Results Sluggish
(Reuters) - Online gaming firm PartyGaming (PRTY.L) said on Friday it expects full-year earnings to beat forecasts even as the strong dollar impacted fourth quarter revenue, which fell 18 percent amid tough trading conditions.
The group, which runs the PartyPoker site, reported group revenue of $100.4 million for the three months to the end of 2008, compared to $122.4 million in the same period a year earlier.
Fourth-quarter revenue was 15 percent down on the previous quarter, despite an 8 percent increase in the number of players visiting its websites. Full-year revenue was 3 percent up.
Shares in the company, which have increased by a fifth in the last three months, were 4 percent down at 163.25 pence by 0905 GMT.
PartyGaming, which is the world's leading listed online gaming company, said it expects annual earnings to be at least $143.1 million, 28 percent higher than in 2007 and just ahead of the $140 million consensus forecast on Reuters Estimates.
"This industry is resilient to recession but it would be foolish to think it is completely immune and I think it (the economic downturn) must have impacted our results by $5 million or more. We do accommodate players at every level (of spending) and are positive on the year ahead," Chief Executive Jim Ryan told reporters on a conference call.
The Gibraltar-based company said the impact of foreign exchange movements had adversely impacted revenues in the fourth quarter by more than $15 million but had a corresponding benefit on its costs.
In the five weeks to Feb. 4 PartyGaming's revenue was down 2 percent from fourth-quarter levels, largely down to the strength of the U.S. dollar and falling casino turnover.
However, analysts at KBC Peel Hunt retain a "Buy" recommendation on the stock and expect the group to deliver more growth in 2009.
Rival gaming group 888 (888.L) on Thursday said its 2008 income rose and that the new year had started well with sales and sign-ups increasing, while Austrian Internet bookmaker bwin (BWIN.VI) on Friday said gaming revenue had grown strongly since the turn of the year.
PartyGaming, which has the rights to develop a new range of Frank Sinatra-branded slot machines, also said it had signed a three-year deal to develop online gaming opportunities in Spanish-speaking countries with offline leisure and gaming group CIRSA.
