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Party shares fell by 1/3 last month - bidding for Empire?
Don't know if this BBC story from Sept. 6 has been posted, but it's interesting. Party admitted that online poker growth is slowing, and their shares fell by 33 %. You'll also see that they are rumored to be buying Empire (which might be old news around here). Regardless, since there is another company interested in Empire, Party could be cutting off the skins as leverage. Empire is bound to be worth less today than it was yesterday.
The story is at: http://news.bbc.co.uk/2/hi/business/4217990.stm Slowdown fear knocks Partygaming Party Poker players have been spending less money Shares in Partygaming, which operates the world's largest online poker site, have fallen more than 30% after it warned future market growth could slow. The firm, which listed in London in June, said revenues rose 80% in the six months to 30 June to $437.4m (£237.7m), from $241.5m a year ago. Profits rose to $186.3m from $146.6m a year ago, but the Party Poker owner said growth in revenues could slow. The firm's shares fell 51.75 pence, or 33%, to 105p on Tuesday. Before trading started, the Gibraltar-based company had a stock market value in excess of £6bn. It had been expected to join the FTSE 100 - the index of the UK's most highly valued listed companies - when the reshuffle of the FTSE indexes takes place on Wednesday. However, the sharp decline in its share price now makes this less likely. Customer focus Partygaming became the largest company to float on the London stock market this year when its shares started trading in June. Poker isn't dead but the talk of 45% growth now looks unrealistic Robin Chhabra, Evolution Securities See Partygaming's share price In its first results statement since its flotation, the company said revenues from its core poker business had increased 89% to $412m. The firm said it continued to attract more players from outside the US and that its current trading was in line with expectations. But it warned that player turnover had increased while their average spending had fallen 7%. "Whilst the online gaming market and poker in particular continues to show strong year on year growth, the rate of growth is continuing to moderate," said chief executive Richard Segal. "As it does so, the group will continue to adapt its marketing strategy and infrastructure to provide greater focus on customer retention and player value." Casual players One analyst said the trading update had given the market a "shock". Partygaming's flotation causes huge interest "Poker isn't dead but the talk of 45% growth now looks unrealistic," said Robin Chhabra, from Evolution Securities. "Poker operators are having to attract casual players who are not as profitable as the hard core and that is changing the economics of the business." Partygaming has been linked with a possible bid for Empire Online, the internet gaming firm which is the subject of takeover speculation. Empire Online has been approached by internet betting firm Sportingbet about a potential £790m offer. |
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Re: Party shares fell by 1/3 last month - bidding for Empire?
Why would they want to buy Empire? They just murdered them.
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Re: Party shares fell by 1/3 last month - bidding for Empire?
Party may just buyout all these skins unless the skins do something fast ie consolidate,buy new rooms or get bought out by bigger non-party Rooms.
All the skins just went on sale hahah courtesy of Party...I would not be surprised at all to see Party pick up the crumbs and buy out Empire or Multi on the cheap. I cant see how Empire doesnt get cut in half today's trading.. They have pretty much been destroyed..People mention well Empire bought Noble Poker-have you looked at Nobles'Lobby. Party has destroyed these skins that dont have alternative revenue sources..ie online sportsbooks,casinoes or B&M betting shops. Intertops and EuroBet will be ok but Multi and Empire I think are in deep sshit.. |
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