Worst Kept Online Gambling Secret Confirmed

June 3 - After months of speculation Party Gaming, the company that owns Party Poker, has confirmed its intentions of a US $10 billion listing on the London Stock Exchange. The June listing will see 23% of the group's equity being offered on the market.

Party Gaming's valuation is based on it's 2004 pre tax profits of  US$372 million.

What will further support the listing is a sharp rise in Q1 2005 of over US$125 million which is well ahead of expectations. The chief executive, Richard Segal, has revealed that one of the primary drivers behind the listing was to support funding of the company's acquisition strategy.

“The market of online gaming is currently very fragmented and spans the globe. This presents a strategic opportunity for acquisitions and consolidation of the market,” Segal said.

Party Gaming will consider various acquisition opportunities. However, it is expected that initial acquisitions will involve rivals and some of the smaller Party Poker skins.

Segal emphasised the important of organic growth in delivering earnings results.

“Our intention is to drive organic growth by continuing to establish ourselves in existing markets and by fortifying the Party brands in wider regions, and also by creating new games and leveraging new marketing channels,” Segal added.

Starluck Casino and PartyBingo are expected to be included under the Party brand with a single account facility.

These brands currently account for 8% of revenues and are expected to increase in importance.

Staff members will participate in 5.6% of equity though an employee share options plan.

Visit Party Poker.

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