Party Poker Shows 8% Decline In Revenue
PartyGaming, one of the online gambling giants, recently announced that it had suffered a decline in poker revenue even though PartyGaming's casino and bingo gaming revenues have experienced growth.
According to revenue reports published by PartyGaming, Party Poker's revenue has dropped by 8% in the last 12-months. Taking into account the drop in revenue noted in the revenue report, Party Poker's revenue stands at 125.9 million euros.
Despite the bad outlook, PartyGaming's Chief Executive Office, Jim Ryan, made a statement, suggesting that the loss of revenue will be compensated by the year end, and that lot rewards are being increased by 25 percent by the company in an attempt to retain and motivate players on the site.
It had been suggested that the effects of the revenue drop had been a result of losing player traffic to other sites and more importantly that margins had been hit by reduced player spending on the site.
PartyGaming, which is a London Stock Exchange listed company, reported a net income of 38.9 million euros ($54 million) or 9 cents per share, meaning the company made a loss of 4.5 cents per share in the last year.
In a recent announcement it was made clear that PartyGaming was merging with Bwin, an Austrian gaming company, which will take place at the end of the current quarter. The merger will make them a major force in the U.S. market, especially if a legalized online gambling framework is set up in the United States which is looking more likely.
After pulling out of the U.S. market the company invested a lot in the casino and bingo sectors, since Party Poker was having to compete with other sites which accepted bets from US players and because the poker sector was not doing as well.
Considering that, PartyGaming's Chief Executive Office, Jim Ryan was confident that it will make savings of 55 million Euros every year by 2025, after the Bwin deal is completed. He also added that they are expecting a number of European countries to permit online gambling in the not too distant future, including Denmark, Greece, Netherlands, Spain and Germany.
With the company's potential expansion into Europe and what comes of the bwin deal, hopefully the revenue derived from online poker at Party Poker will begin to experience an upward trend and show a profit for its shareholders.
