[Cubswin]

Was in a bit of a hurry this morning so i couldnt post the entire article then.... but here it is now....

Party unveils profits as it moves towards IPO

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.

Unaudited EBIDTA profits for Party Gaming, before share option expenses, are ahead of market expectations of US$350m, and are also a stunning 65% of annual revenues of US$602m.

The firm, which is the parent company of Party Poker, is now widely expected to push ahead with plans for an IPO in July.

The valuation of Party Gaming is believed to be in the region of US$10bn, which will make it the largest listed online gaming company at five times the size of Sportingbet.

Party made the announcement after completing its strategic review, which was undertaken by investment banks Investec and Dresdner Kleinwort Wasserstein (DrKW).

But the firm said it has solely retained DrKW to advise on the potential float to the surprise of some analysts who had expected both banks to handle what will probably be the largest IPO on the London Stock Exchange this year.

A well placed city source has reported Investec pulled out of its relationship with Party.

But the firm said there was no truth to the market rumours and it still had a good relationship with the bank.

A Party spokesman would not confirm plans for an IPO, but a successful listing would be hugely important for the egaming sector.

Several major egaming firms, including Party’s Gibraltar neighbours Cassava Enterprises, are known to be keen to go public.

And many smaller firms who are looking at a listing will watch how the market receives the party listing with great interest.

Party's appointment of two heavyweight non-executive directors is also a significant step in the direction of an IPO.

Michael Jackson, currently chairman of software firm Sage Group, was named as non-executive chairman.

And Brian Larcombe, formerly chief executive of venture capital fund 3i Group, was named as non-executive deputy chairman.