The guessing about how much party is making is over!!!

[Cubswin]

From egaming review:

"Poker giant Party Gaming has revealed 2004 profits of US$391m and appointed two non-executive directors in a sure sign it is going ahead with a US$10bn listing on the London Stock Exchange this summer."

Im sure they will many stories about this coming out today/tomorrow... will keep you all posted.

cubs

[ismisus]

They out 400 million out of degenerates already? I wonder how many years it will take before everyone goes broke?

p.s. it will happen, games do get tougher every month

[Sintax]

Party Poker - A million a day in profit and counting...

[Sintax]

P.S.S.

That was 400 million last year only....

[sublime]

p.s. it will happen

no, it wont

[Vern]

[ QUOTE ]
They out 400 million out of degenerates already? I wonder how many years it will take before everyone goes broke?

p.s. it will happen, games do get tougher every month

[/ QUOTE ]

"There's a sucker born every minute" David Hannum

[Baulucky]

This is much lower than previous estimates. Isn't it?.

[sumdumguy]

Something doesn't make sense with the 391m number for profits. Granted.. I desperately need sleep, but it just doesn't sound right. Shouldn't it be way higher?

Looking at the Pokerpulse numbers, this morning Party has 4,535 real money players at 637 tables. Their 24 hour peak was 19,318 real money players.. so I'd guess the average hour for Party has maybe 10,000 real money players at 1,400 tables.

So, if we take 1,400 tables x 55 hands per hour x 24 hours x 365 days = 674,520,000 real money hands per year. If we reduce Party's rake by 50 cents a hand it would reduce their earnings by $337,260,000.. which is awful close to their net profits. Something's not right.

They cannot be making 50 cents a hand and relying exclusively on their tournaments and sitngo's to make money. I'd think they have grossly under reported their earnings or grossly overpaid owners and execs such that they are all billionaires.

Before someone bashes me.. I truly desperately need sleep.. but this number just looks too freakin small.

[kenberman]

you are assuming net profit = rake, which is very false. Party needs to pay the salaries of all employees, bonuses, advertising, etc....all of this reduces rake (essentially, sales) into profit.

Party's rake last year was estimated to be around $1B. A net profit figure of $391M is a huge net profit %, but it not that surprising.

[nnoobi]

[ QUOTE ]
This is much lower than previous estimates. Isn't it?.

[/ QUOTE ]

It would be if previous estimates were how much rake (or revenue) Party collects.

This amount is profits -- after all costs (operational, advertising, executive salaries) have been paid.