Online gaming group PartyGaming PLC (PRTY.LN) Wednesday said fourth quarter sales rose 32% to $132.2 million, helped by acquisitions, and it remains confident about 2010 with January trading in line with the company's expectations.
The strong rise in sales was helped by the acquisition of bingo and casino operator Cashcade Ltd and World Poker Tour last year. Excluding these buys, sales rose 12% year-on-year as its online casino games performed well and its sports betting operations were boosted by favourable sports results.
The group also reiterated its December announcement that it expects 'clean' 2009 full-year earnings before interest, tax, depreciation and amortization, or Ebitda, to be slightly ahead of the company's expectations.
'Clean' Ebitda is the company's preferred measure of profitability and excludes one-off, non-recurring and non-cash items.
The company is due to report is full year results March 4.
PartyGaming, the world's biggest listed online gaming group by market capitalization, derives most of its revenue from online poker and casino games and has a smaller sports book and bingo business.
The company announced Wednesday the appointment of Per Widerstrom to the newly created post of chief operating officer to drive growth across the group's brands. Widerstrom was most recently chief executive of Mangas Gaming Malta Ltd, a gaming company with an emphasis on sports betting.
Chief executive Jim Ryan said: "With some of the world's largest gaming sites in poker, casino and bingo, and opportunities to further consolidate the online gaming sector, we are confident about our future prospects."
Last month PartyGaming confirmed that it is consolidation talks with a number of companies in the gaming sector, although these are at an early stage. Although the company did not specify the counterparty to any talks, widespread speculation has pointed to Vienna-listed online gaming group Bwin Interactive Entertainment AG (BWIN.VI).
Like PartyGaming, BWin is also based in Gibraltar.
The company is also looking to expand its operations as several countries open up their gambling laws. The French market will open this year and the Danish market in 2011, and last year Partygaming launched an Italian online poker service with local online gaming operator Fueps.
"Whilst the regulatory picture in some countries remains uncertain, the momentum towards creating commercially viable and regulated markets is strong," Ryan said.
The company said it had seen a strong performance in its casino operations and a return to growth in all products in the fourth quarter.
Partygaming's poker operations had been under pressure due to stiff competition from rivals, and the company reacted by increasing the bonuses paid and expanding its loyalty program to encourage customers onto the site and retain them.
Paying out bonuses cost the company 23% of its poker revenue in the fourth quarter, slightly better than the targets set out at the company's half-year results. For its other products, the company managed to reduce its bonus costs by removing unprofitable players.
PartyGaming shares have risen almost 30% in the past three months as the gaming sector sees markets improve amid the general economic thaw. The stock opened up 6 pence, or 2.1%, at 292 pence Wednesday.

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