Party Gaming feels effect of Recession
18th February, 2009
The major cut back in consumer spending over recent months, has resulted in several commercial business organizations struggling financially, forcing many to take drastic action to stop a further decline in profits.
Online gaming firms have also witnessed a reduction in revenues, as player numbers fall and spending decreases. Party Gaming's revenue fell by a huge 18.4 % in the last quarter of 2008.
The brand, who own popular Party Poker.com,is one of the largest and most successful gaming businesses in the world, yet it too is being hit hard by the recession.
Last quarters revenue finished at $100.4 million, and the 18 % fall was blamed on the deprecation of the US dollar against the Pound and Euro.
In spite of this overall annual profits had risen 3% in 2008 from the previous year. Jim Ryan CEO of Party Gaming continued to stay positive saying, “We continue to make solid progress in the execution of our strategy.”
Ryan went on to explain the companies situation in more detail saying, “Trading conditions have remained tough with an unlevel playing field in poker and the appreciation of the US dollar against other currencies continuing to impact top line performance"
"However, currency movements had a corresponding benefit on our costs and, consequently, we anticipate clean EBITDA for the full year to be slightly ahead of market expectations"
By Jamie
