Party Poker Revenue Drops in 2009, PartyGaming Plc have just released their interim results for the six months up to 30 June 2009.
While PartyGaming still has a firm foot in the door in the online poker world currently number 4 globally in terms of player traffic the former giant has suffered a major blow ever since the UIGEA was passed into USA law where the LSE based company opted to take the safe road by blocking all USA customers their major source of revenue at the time.
The company has since adapted remarkably well without the US market by extending their services to include PartyCasino, PartyBets and PartyBingo.
PartyCasino has since evolved into becoming the single largest online casino operation worldwide and boasts profit figures that are just short of those generated from Party Poker.
PartyGaming have put the drop in earnings down to three major factors competitive pressures assumedly from Full Tilt Poker and PokerStars who both currently continue to allow USA players and are fighting for market share, an economic slowdown and adverse currency movements in the strength of the US Dollar.
PartyPoker’s earnings were down drastically, earning $102.6 million for 2009 vs. $153.9 million for the same period last year despite player bonuses and bonus awards being lower this year than last.
Overall PartyGaming’s revenue was $201.3 million for the period vs. $254.8 million last year.
None the less, PartyGaming have pledged to purchase further acquisitions in an attempt to extend their operations with a push recently made to dominate bingo with its £80m+ purchase of Cashcade in July as well this month’s £12,3m acquisition of World Poker Tour parent company WPT Enterprises.
PartyGaming have settled all their legal disputes with the US justice department and look set to dominate if any law regulating online poker in the USA is ever introduced. PartyGaming has US$40 million to spend on further acquisitions it chooses in online bingo, sportbetting, casino and poker.
So despite PartyPoker’s current economic struggle, don’t count out the former #1 in the industry as the battle is far from over.