PartyPoker announced how much costs of withdrawal from the U.S. market has caused
PartyGaming PLC, based in Gibraltar and on the London Stock Exchange traded parent company of PartyPoker, has announced that the direct and one-off costs of the withdrawal from the U.S. market amounted to approximately $ 250,000,000. The withdrawal from the U.S. business, was a response to the Safe Port Act, which President Bush as a force has been confirmed. The Safe Port Act contains the “Unlawful Internet Gambling Enforcement Act of 2006″, which directly affect the online gambling in the United States.
While the financial results for the 3rd quarter to 30.09 on the whole the growth of previous quarters reflect, the other results due to the current situation more or less meaningless. The group of firms had to spend a lot of money and had as a result of the withdrawal from the U.S., the fixed assets and to re-evaluate down. The company believes that the $ 250,000,000 as a loss against the profits off, but the future revenue loss due to the absence of the U.S. market are much higher. The investors in the stock market have responded and the value of the share is currently about 30%. Since the Congress decision, the Law for the force said, the investors have the market value of the company was reduced by 4 billion and the expected future costs of rational complete abolition of the U.S. market satisfied.
Not really surprising for the market was the announcement of PartyPoker that the group of companies in the future growth of its market outside the U.S. will concentrate.
The CEO of PartyGaming PLC, Mitch Garber said:
“The impact of the new laws in the U.S., the nature of our business changed significantly. On 13 October, after the Safe Port Act has the group all real money gaming activities in the US-based players exposed to in the future the expansion of its business activities outside the U.S. to work. Although the United States in the past for the largest share of the group turnover and profits had contributed, I am pleased to announce that our business outside the U.S. in the last quarter has risen sharply (increase in revenue in the amount of 158% (year to year), increase the “active player Days” by 141%, number of active players at 161% to 331,520).
“Due to the changes in our business environment, the group the cost base already greatly reduced. Nevertheless, we assume that the adjusted EBITDA of the group in 2.Halbjahr will be significantly lower than in the first half, which in turn the cost of our unique Rationalisation measures reflect a whole because we significantly increased revenues were expected. ”
“PartyGaming is a highly dynamic company, we are a company which has consistently demonstrated that it is able to be new challenges and environment. The company group has some of the most talented people in online gambling and are determined in the future to our strengths set: our customers an online gambling company to present you can trust, which uses the latest technology and your customers with excellent customer service support. ”
The company group has also planned to update the trade and business development issued. PartyGaming PLC has announced the following:
“In the few days since the customers in the U.S. is no longer possible, at Party Poker for real money to play, the average revenue from transactions outside the U.S. by 2% higher than in the 3rd quarter. However, not yet times one week ago, since the group no more bets from U.S. citizens must accept, it is still too early to say how accurately the impact on revenue from transactions outside the U.S. in the future. ”
“In October 2006, our first multi-lingual PartyPoker software in operation. In the coming months we will present further updates and hope the year 2007 software to be able to offer to different currencies.”
“Game bookers, one of the most exclusive sports betting providers outside the USA, was on 03.August of PartyGaming PLC bought up. The current success of our newest corporate growth is well above the expectations of management. Due to the infrastructure of Game bookers, we are soon to be in the situation with our PartyBets new product in the market. PartyBets is the end of the year, a firm integral part of the brand PartyGaming, start. ”