29-08-2007 Gamebookers' results adversely impacted by the UEFA Euro 2008 qualifiers in June

29-08-2007 Gamebookers' results adversely impacted by the UEFA Euro 2008 qualifiers in June

During the first half of 2007, Gamebookers and PartyBets generated total gross win of $10.0m, with an average gross win margin over the period of 6.8%, a net revenue of $6.5m and a clean EBITDA of $0.7m . The overall result was impacted by the performance in June 2007, when all but one of the 16 favourites in the UEFA Euro 2008 qualifiers won their matches. The gross win margin fell to 4.8% in the second quarter from 8.8% in the first quarter 2007.

Total sports betting turnover in the first half 2007 was $147.9m. Over 34,000 real money players signed up to the Gamebookers and PartyBets sites, up 35% from 2006, bringing the total of unique active players during the period to 112.400, up 3% compared with the same period in 2006.

Having integrated the Gamebookers and PartyBets betting products onto a single platform in June 2007, the group will now offer white label betting services to third parties. Following the combination of the back-end technology and the introduction of a multi-currency facility, PartyBets is also looking to capitalize on the substantial cross-selling opportunity within the group's poker customer base. Only 4.5% of the group's poker players placed a bet with PartyBets in the six months to 30 June 2007.

Meanwhile, parent company PartyGaming said its total revenue in H1 2007 was down 68% to $212.5m following the move out of the US market in October 2006, while the underlying performance by the continuing operations in Europe, Middle East and Africa was strong with a 42% increase to $212.5m. During the period, the group incurred an operating loss of $47.3m compared with an operating profit of $319.3m in 2006. Continuing operations showed a 29% increase in clean EBITDA to $36.9m.

The number of non-US real money signups increased by 83% to 403,713 during the first six months of 2007, while the total number of unique active players increased by 102% to 768,200 with the average number of daily players up 115% to over 80,000.

While poker remains the largest individual business segment representing 66% of total revenues from the group's continuing operations, the casino business enjoyed the largest growth year-on-year with revenue climbing 218% to $64.6m and clean EBITDA up by 108% to $15.2m.

Chief Executive Mitch Garber said: "The Group has delivered a solid performance in the first half of 2007 with excellent top line growth and new player sign-ups. We continue to execute our strategy through growing our player base, localisation of the customer offer and broadening our product suite. Over the coming weeks and months we expect to announce a number of further important business alliances with leading companies around the world that will help us to promote and grow our business. While the important fourth quarter lies ahead, the Board remains confident about the Group's prospects for the full year."

Garber also said the company was continuing talks with US authorities: "We had voluntarily approached the Department of Justice and we are working toward satisfactory resolution."

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