PartyGaming benefits boom from taking over Cashcade
23rd July, 2009
After PartyGaming bought bingo operator Cashcade earlier this week, paying out an initial £71.9m in cash for the company that owns brands such as Foxy Bingo and Think Bingo, with potentially a second payment of £24m depending on future performance, it is bound to of had an impact on the bingo industry.
Currently PartyGaming is using its own cash resources to pay the amount due but there is talk that they may have to consult with banks to help them with additional takeovers if desired. It seems that PartyGaming have struck themselves a fantastic deal, whilst the investment is huge, analysts have worked out the benefits summarizing that the investment into bingo has proven ‘a sensible enhancement’. Analyst Peel Hunt explained, “We estimate that the deal will enhance profits 4% this year taking profits to approximately £99m before tax. In addition, it is estimated that by 2010 it should be enhancing profits by 10% making profits £115m. No one in the industry seems threatened by the take over, and it seems there is a positive attitude that will provide a boost to the industry and this opportunity has now set PartyGaming as market-leaders in the online bingo industry.
By Gina
