2009 Q4 KPIs and Trading Update
February 03 2010 - 2:00AM
UK Regulatory
TIDMPRTY
RNS Number : 5812G
PartyGaming Plc
03 February 2010
3 February 2010
PartyGaming Plc
("PartyGaming" or the "Company" and, together with its subsidiaries, the
"Group")
Fourth Quarter Key Performance Indicators and Trading Update
Highlights
Ø Group revenue1 up 32% versus the prior year and up 17% versus the previous
quarter to $132.2m (2008: $100.4m) making $446.2m for the full year (2008:
$472.9m)
Ø Strong performance in casino and a return to growth in all product verticals
were key factors in the quarter resulting in higher Clean EBITDA margins than
expected
Ø Clean EBITDA for the year ended 31 December 2009 expected to be slightly ahead
of the Board's expectations
Ø PartyPoker now the largest poker liquidity pool excluding US-facing sites
Ø January trading in-line with the Board's expectations
Commenting on the Group's full year revenue and fourth quarter KPIs, Jim Ryan,
Chief Executive Officer, said:
"We enjoyed a strong fourth quarter with a return to growth in all four product
verticals but with a particularly strong performance in casino and sports
betting. Having recaptured the number one spot in the world in terms of poker
liquidity2 and with our integration of Cashcade and the World Poker Tour ('WPT')
well on track, our performance in the first four weeks of 2010 has been in-line
with the Board's expectations and we remain confident about our prospects for
the full year.
"With the introduction of ring game poker, casino and bingo anticipated in Italy
in the first half of 2010, the opening of the French market later this year and
Denmark in 2011, we believe the outlook remains positive. Whilst the regulatory
picture in some countries remains uncertain, the momentum towards creating
commercially viable and regulated markets is strong. With some of the world's
largest gaming sites in poker, casino and bingo, and opportunities to further
consolidate the online gaming sector, we are confident about our future
prospects."
1 Including network services revenue of $0.3m and revenue from the World Poker
Tour of $0.7m
2 Excluding US-facing sites - source: Pokerscout.com
Consolidated Key Performance Indicators (excluding network services and WPT)
+-------------------------------+---------+--------+--------+----------------+
| Three months to 31 December | 2009 | % | % | 2008 |
| | | change | change | |
| | | versus | versus | |
| | | Q3 | Prior | |
| | | 2009 | year | |
+-------------------------------+---------+--------+--------+----------------+
| Active player days (m) | 7.8 | 7% | 24% | 6.3 |
+-------------------------------+---------+--------+--------+----------------+
| Daily average players (000) | 85.2 | 8% | 24% | 68.9 |
+-------------------------------+---------+--------+--------+----------------+
| Yield per active player day | 16.7 | 8% | 6% | 15.8 |
| ($) | | | | |
+-------------------------------+---------+--------+--------+----------------+
| Yield per unique active | 180.4 | 17% | 5% | 171.7 |
| player in the quarter ($) | | | | |
+-------------------------------+---------+--------+--------+----------------+
| New real money sign-ups (000) | 213.7 | 3% | 27% | 168.0 |
+-------------------------------+---------+--------+--------+----------------+
| Unique active players during | 727.1 | 0% | 24% | 584.3 |
| the period (000) | | | | |
+-------------------------------+---------+--------+--------+----------------+
| Average daily revenue | 1,425.8 | 17% | 31% | 1,090.8 |
| (excluding skins) ($000) | | | | |
+-------------------------------+---------+--------+--------+----------------+
| Total revenue ($m) | 131.2 | 17% | 31% | 100.4 |
+-------------------------------+---------+--------+--------+----------------+
Group revenue was $132.2m in the fourth quarter of 2009, an increase of 32% over
the prior year and 17% over the previous quarter. Excluding Cashcade and WPT
that were acquired on 23 July 2009 and 9 November 2009 respectively, revenue
increased by 16% versus the previous quarter and by 12% versus the prior year.
The key drivers behind the improvement included a strong performance in casino,
that benefited from an improving games mix and the recycling of a major jackpot
win during December, as well as sports betting where we saw an increase in gross
turnover as well as gross win margin due to operational improvements and
favourable results.
New player sign-ups increased by 3% versus the previous quarter to over 213,000
(2008: 168,000), driven by marketing initiatives and seasonality. The addition
of Cashcade and higher player retention as a result of more effective promotions
as well as improved loyalty and VIP programmes, meant that active player days
increased by 7% versus Q3 09 and by 24% versus the prior year. The impact was
to increase total net revenue (including network services and WPT) by 17% versus
the previous quarter to $132.2m (2008: $100.4m) or $1,437,300 per day (2008:
$1,090,800).
Bonus costs and other fair value adjustments to poker revenue were 23% during
the fourth quarter, slightly better than the targets that we communicated at the
time of the half year results. In the other product verticals, bonus costs were
reduced on the back of successful initiatives to remove unprofitable players.
Combined with the strong growth in casino, this meant that the average yield per
active player day increased by 8% versus the previous quarter to $16.7 (2008:
$15.8). The net impact of all of these factors was that total average net
revenue per day in the fourth quarter of 2009 was up 32% to $1,437,300 (2008:
$1,090,800) which was also 17% over that achieved in the third quarter of 2009
and the highest daily average since the enactment of the UIGEA in October 2006.
Clean EBITDA for the year ended 31 December 2009 is likely to be slightly ahead
of the Board's expectations.
Full details of all of the Group's historic quarterly KPI data by segment is
available for download at the Group's website at
http://www.partygaming.com/investor/documentation.html.
Trading update
Trading in January has been in-line with the Board's expectations and the Board
is confident about the full year outlook.
The Group's results for the year ended 31 December 2009 will be announced on 4
March 2010.
Contacts:
+--------------------------------------+----------------------+
| PartyGaming Plc | +44 (0)20 7337 0100 |
+--------------------------------------+----------------------+
| Peter Reynolds, Group Director of | |
| Corporate Affairs | |
+--------------------------------------+----------------------+
| John Shepherd, Director of Corporate | |
| Communications | |
+--------------------------------------+----------------------+
Conference call
Wednesday 3 February 2010
For analysts and investors there will be an opportunity to put questions to Jim
Ryan, Chief Executive Officer and Martin Weigold, Group Finance Director, by way
of a conference call at 09.30 GMT. The details of the call are as follows:
+------------------------+----------------------------------+
| Dial-In No: | +44 (0) 20 3037 9236 |
+------------------------+----------------------------------+
| Replay (available for | +44 (0) 20 8196 1998 |
| 1 week): | |
+------------------------+----------------------------------+
| Replay passcode: | 7624724# |
+------------------------+----------------------------------+
Appendix
Poker* - Key Performance Indicators
+-------------------------------+-------+--------+--------+----------------+
| Three months to 31 December | 2009 | % | % | 2008 |
| | | change | change | |
| | | versus | versus | |
| | | Q3 | prior | |
| | | 2009 | year | |
+-------------------------------+-------+--------+--------+----------------+
| Active player days (m) | 4.8 | 4% | (2%) | 4.9 |
+-------------------------------+-------+--------+--------+----------------+
| Daily average players (000) | 51.7 | 3% | (4%) | 53.6 |
+-------------------------------+-------+--------+--------+----------------+
| Yield per active player day | 10.3 | 6% | (8%) | 11.2 |
| ($) | | | | |
+-------------------------------+-------+--------+--------+----------------+
| Yield per unique active | 112.1 | 8% | (8%) | 121.4 |
| player in the quarter ($) | | | | |
+-------------------------------+-------+--------+--------+----------------+
| New real money sign-ups (000) | 125.7 | 5% | 7% | 117.7 |
+-------------------------------+-------+--------+--------+----------------+
| Unique active players during | 438.4 | 1% | (3%) | 453.8 |
| the period (000) | | | | |
+-------------------------------+-------+--------+--------+----------------+
| Average daily revenue | 534.0 | 9% | (11%) | 599.1 |
| (excluding skins) ($000) | | | | |
+-------------------------------+-------+--------+--------+----------------+
| Total poker revenue ($m) | 49.1 | 9% | (11%) | 55.1 |
+-------------------------------+-------+--------+--------+----------------+
*includes Emerging Games segment but excludes network services and the World
Poker Tour
Casino - Key Performance Indicators
+-------------------------------+---------+--------+--------+---------------+
| Three months to 31 December | 2009 | % | % | 2008 |
| | | change | change | |
| | | versus | versus | |
| | | Q3 | prior | |
| | | 2009 | year | |
+-------------------------------+---------+--------+--------+---------------+
| Active player days (000) | 1,025.7 | 6% | 2% | 1,010.3 |
+-------------------------------+---------+--------+--------+---------------+
| Daily average players (000) | 11.1 | 5% | 1% | 11.0 |
+-------------------------------+---------+--------+--------+---------------+
| Yield per active player day | 56.2 | 11% | 42% | 39.5 |
| ($) | | | | |
+-------------------------------+---------+--------+--------+---------------+
| Yield per unique active | 337.6 | 18% | 78% | 189.9 |
| player in the quarter ($) | | | | |
+-------------------------------+---------+--------+--------+---------------+
| New real money sign-ups (000) | 23.2 | 1% | (4%) | 24.1 |
+-------------------------------+---------+--------+--------+---------------+
| Unique active players during | 170.7 | (1%) | (19%) | 210.3 |
| the period (000) | | | | |
+-------------------------------+---------+--------+--------+---------------+
| Average daily revenue | 626.3 | 17% | 44% | 434.0 |
| (excluding skins) ($000) | | | | |
+-------------------------------+---------+--------+--------+---------------+
| Total casino revenue ($m) | 57.6 | 17% | 44% | 39.9 |
+-------------------------------+---------+--------+--------+---------------+
Bingo - Key Performance Indicators
+-------------------------------+---------+--------+--------+----------------+
| Three months to 31 December | 2009 | % | % | 2008 |
| | | change | change | |
| | | versus | versus | |
| | | Q3 | prior | |
| | | 2009 | year | |
+-------------------------------+---------+--------+--------+----------------+
| Active player days (000) | 1,730.8 | 19% | 1663% | 98.2 |
+-------------------------------+---------+--------+--------+----------------+
| Daily average players (000) | 18.8 | 20% | 1609% | 1.1 |
+-------------------------------+---------+--------+--------+----------------+
| Yield per active player day | 10.0 | 5% | (31%) | 14.4 |
| ($) | | | | |
+-------------------------------+---------+--------+--------+----------------+
| Yield per unique active | 94.8 | 30% | 41% | 67.2 |
| player in the quarter ($) | | | | |
+-------------------------------+---------+--------+--------+----------------+
| New real money sign-ups (000) | 37.2 | (23%) | 994% | 3.4 |
+-------------------------------+---------+--------+--------+----------------+
| Unique active players during | 182.7 | (4%) | 770% | 21.0 |
| the period (000) | | | | |
+-------------------------------+---------+--------+--------+----------------+
| Average daily revenue ($000) | 188.3 | 26% | 1123% | 15.4 |
+-------------------------------+---------+--------+--------+----------------+
| Total bingo revenue ($m) | 17.3 | 25% | 1136% | 1.4 |
+-------------------------------+---------+--------+--------+----------------+
*Excludes network services
Sports Betting - Key Performance Indicators
+-------------------------------+-------+--------+--------+----------------+
| Three months to 31 December | 2009 | % | % | 2008 |
| | | change | change | |
| | | versus | versus | |
| | | Q3 | prior | |
| | | 2009 | year | |
+-------------------------------+-------+--------+--------+----------------+
| Active player days (000) | 916.8 | 19% | (3%) | 945.9 |
+-------------------------------+-------+--------+--------+----------------+
| Daily average players (000) | 10.0 | 19% | (3%) | 10.3 |
+-------------------------------+-------+--------+--------+----------------+
| Yield per active player day | 7.8 | 44% | 90% | 4.1 |
| ($) | | | | |
+-------------------------------+-------+--------+--------+----------------+
| Yield per unique active | 83.0 | 52% | 77% | 46.8 |
| player in the quarter ($) | | | | |
+-------------------------------+-------+--------+--------+----------------+
| New real money sign-ups (000) | 27.7 | 67% | 21% | 22.8 |
+-------------------------------+-------+--------+--------+----------------+
| Unique active players during | 85.7 | 11% | 3% | 83.0 |
| the period (000) | | | | |
+-------------------------------+-------+--------+--------+----------------+
| Average daily revenue ($000) | 77.3 | 69% | 83% | 42.3 |
+-------------------------------+-------+--------+--------+----------------+
| Total sports betting revenue | 7.1 | 69% | 82% | 3.9 |
| ($m) | | | | |
+-------------------------------+-------+--------+--------+----------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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