I have been an avid online Poker player for almost two years now. In addition to supplementing my income by crushing the horrible players that play online, I have been following the industry closely.
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ARTICLE:
LONDON (Dow Jones)--Shuffle up and deal.
Partygaming PLC, one of the world's largest online gaming companies, Thursday
announced plans for an initial public offering on the London Stock Exchange that
could value the company at more than $10 billion, according to analysts.
The estimated market capitalization of Partygaming is based on a comparison with
sportingbet.com (SBT.LN), an AIM-listed peer which trades at around 30-times last
year's earnings, excluding its recent acquisition of another online gaming
company.
Partygaming, whose shares are expected to begin trading at the end of June, could
rank in the top-half of the FTSE-100 by size, but couldn't officially be included
in the FTSE-100 until September when the FTSE committee meets to reexamine the
index constituents.
In addition to market value, there are additional criteria to being included in
the FTSE-100 such as trading volume.
Partygaming owns and operates the world's largest online poker brand, Partypoker,
and says it regularly has 70,000 players simultaneously gambling online.
The Gilbraltar-based company has a 55% market share of the global online gaming
business, said Richard Segal, Partygaming chief executive.
Partygaming's principal revenue stream comes from online poker which in 2004
accounted for approximately 92%, or $553 million, of its revenue. Its bingo and
casino units generated $48.6 million in revenue last year.
Partygaming posted net profit of $350.1 million in 2004 and revenues of $601.6
million. In 2003 the company recorded net profit of $83.6 million, and $4.7
million in 2002.
In the first quarter of 2005 net profit was $117.4 million and revenues were
$222.6 million.
"A float will help to facilitate our strategy of expanding internationally,
increasing our range of products, and funding merger and acquisitions activity,"
said Segal.
Twenty-three percent of the company's share capital will be sold by management,
founders and employees, and is expected to be traded in free float.
A additional 5.6% of the company will be put into a dedicated trust for the
benefit of current and future employees. Current employees will be given
zero-cost share options worth 64% of the trust, which will vest over a 4-to-5
year period.
In addition to Segal, who will retain 1% following the offering, Partygaming's
management team is led by non-executive Chairman Michael Jackson, who is also
chairman of the FTSE-100 software company Sage Group PLC (SGE.LN).
The company's four founders are Ruth Parasol and Russ DeLeon, Anurag Dik**** and
Vikrant Bhargava. Dik**** is the largest single shareholder controlling about 40%
of the company.
PartyGaming employs 1,100 people, most of whom are based in Hyderabad, India, the
site of its back office and software development units.
As of the end of March the company had 1 million registered real money players of
which it considers 400,000 to be active players. The company said that in 2004
over 1 billion hands of poker were played at its online site.
The largest pay out to date was $1.5 million during a pre-Easter tournament,
which had a total prize pool of $7.4 million.
Gibraltar is the home to several online gaming companies while the majority of
players are American. An estimated 80% of online poker players are based in the
U.S., and there are various pieces of proposed legislation in the U.S. Congress
aiming to regulate the industry.
Partygaming doesn't currently offer sports betting, and said it wanted to list
its shares in London because of what Segal characterized as a more sympathetic
climate for online gambling that in the U.S.
Partygaming will only be targeting U.K. and European institutions on its
roadshows, said Segal.
Dresdner Kleinwort Wasserstein is acting as sponsor and global bookrunner for the
offer.
Company Web site: http://www.partygaming.com
By Corey Boles of Dow Jones Newswires; +44 20 7842 9254; corey.boles@dowjones.com
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To me this represents great investment opportunities for related stocks such as Neteller and Cryptologic.
Neteller is the largest "money-handler" for all of the online gaming sites and Cryptologic is another large gaming site.
These stocks should rise in sympathy with the IPO.
Anyone with any relevant knowledge and/or investment experience care to comment?
--------------------------------------------------------------------------------
ARTICLE:
LONDON (Dow Jones)--Shuffle up and deal.
Partygaming PLC, one of the world's largest online gaming companies, Thursday
announced plans for an initial public offering on the London Stock Exchange that
could value the company at more than $10 billion, according to analysts.
The estimated market capitalization of Partygaming is based on a comparison with
sportingbet.com (SBT.LN), an AIM-listed peer which trades at around 30-times last
year's earnings, excluding its recent acquisition of another online gaming
company.
Partygaming, whose shares are expected to begin trading at the end of June, could
rank in the top-half of the FTSE-100 by size, but couldn't officially be included
in the FTSE-100 until September when the FTSE committee meets to reexamine the
index constituents.
In addition to market value, there are additional criteria to being included in
the FTSE-100 such as trading volume.
Partygaming owns and operates the world's largest online poker brand, Partypoker,
and says it regularly has 70,000 players simultaneously gambling online.
The Gilbraltar-based company has a 55% market share of the global online gaming
business, said Richard Segal, Partygaming chief executive.
Partygaming's principal revenue stream comes from online poker which in 2004
accounted for approximately 92%, or $553 million, of its revenue. Its bingo and
casino units generated $48.6 million in revenue last year.
Partygaming posted net profit of $350.1 million in 2004 and revenues of $601.6
million. In 2003 the company recorded net profit of $83.6 million, and $4.7
million in 2002.
In the first quarter of 2005 net profit was $117.4 million and revenues were
$222.6 million.
"A float will help to facilitate our strategy of expanding internationally,
increasing our range of products, and funding merger and acquisitions activity,"
said Segal.
Twenty-three percent of the company's share capital will be sold by management,
founders and employees, and is expected to be traded in free float.
A additional 5.6% of the company will be put into a dedicated trust for the
benefit of current and future employees. Current employees will be given
zero-cost share options worth 64% of the trust, which will vest over a 4-to-5
year period.
In addition to Segal, who will retain 1% following the offering, Partygaming's
management team is led by non-executive Chairman Michael Jackson, who is also
chairman of the FTSE-100 software company Sage Group PLC (SGE.LN).
The company's four founders are Ruth Parasol and Russ DeLeon, Anurag Dik**** and
Vikrant Bhargava. Dik**** is the largest single shareholder controlling about 40%
of the company.
PartyGaming employs 1,100 people, most of whom are based in Hyderabad, India, the
site of its back office and software development units.
As of the end of March the company had 1 million registered real money players of
which it considers 400,000 to be active players. The company said that in 2004
over 1 billion hands of poker were played at its online site.
The largest pay out to date was $1.5 million during a pre-Easter tournament,
which had a total prize pool of $7.4 million.
Gibraltar is the home to several online gaming companies while the majority of
players are American. An estimated 80% of online poker players are based in the
U.S., and there are various pieces of proposed legislation in the U.S. Congress
aiming to regulate the industry.
Partygaming doesn't currently offer sports betting, and said it wanted to list
its shares in London because of what Segal characterized as a more sympathetic
climate for online gambling that in the U.S.
Partygaming will only be targeting U.K. and European institutions on its
roadshows, said Segal.
Dresdner Kleinwort Wasserstein is acting as sponsor and global bookrunner for the
offer.
Company Web site: http://www.partygaming.com
By Corey Boles of Dow Jones Newswires; +44 20 7842 9254; corey.boles@dowjones.com
---------------------------------------------------------------------------------
To me this represents great investment opportunities for related stocks such as Neteller and Cryptologic.
Neteller is the largest "money-handler" for all of the online gaming sites and Cryptologic is another large gaming site.
These stocks should rise in sympathy with the IPO.
Anyone with any relevant knowledge and/or investment experience care to comment?
