Partygaming has today declared that in addition to the merger with Bwin the company would also be looking at further opportunities and has claimed it will not be paying a dividend this year.

The company which is already the world's largest listed online-gaming group by market capitalization, is due to merge with Austrian sports-book operator Bwin Interactive Entertainment in 2011.

Jim Ryan the Chief Executive at Partygaming commented the merger "will put us into the next dimension. Our future is very bright." While revenues are up the company is concerned about the impact on consumer spending from tax hikes, public spending cuts and unemployment as European governments rein in borrowing. Ryan commented that the "macroeconomic and competitive environments remain challenging."

PartyGaming said first-half Ebitda from continuing operations rose 14% to EUR48.1 million from EUR42.3 million a year earlier. It also reiterated its full-year outlook for a margin on earnings before interest, tax, depreciation and amortization of 28% for the full year, and said trading in the second half so far is in line with expectations.

First half revenues increased 30% to EUR181.2 million from EUR139.9 million. This was helped by the acquisition of Cashcade, (which own online bingo sites such as Foxy Bingo, Cheeky Bingo and Think Bingo) and strong growth in casino, sports betting and the bingo operations.

Casino revenues up from EUR 62.1m to EUR76.4m

Sports Betting revenues up from EUR5.4m to EUR10.2m

Bingo revenues up from EUR1.2m to EUR25.8m

Poker revenues were down after strong competition and the impact of the World Cup. Ryan added he expects poker revenue to return to growth in September for the European poker market.

Wyn Ellis and analyst at Numis added that the key opportunities for the group included industry consolidation and further opportunities for its international markets in France, Italy and Denmark. "Momentum is also gradually gathering behind regulation in the US... There are plenty of promising opportunities on the horizon." he added.

The firm is pushing into newly-regulated territories such as France, where online gaming licences for sports betting and poker were issued for the first time in June 2010. Denmark is also planning to open up its online gaming market early next year which poses further options and countries such as Spain, Greece and Belgium have also been linked with similar proposals. The goal however remains a return to the US market which the company has not operated in since 2006, when the Government passed new legislation.

Two US senators, Barney Frank and Jim McDermott are pushing for the regulation and licensing of online gambling in the US, which they estimate could raise 42 billion dollars (£26.5 billion) over 10 years.

PartyGaming is hopeful of a breakthrough but said further progress could be limited until after the looming US mid-term elections due to the "politically sensitive" nature of the subject.

PartyGaming said it would be "imprudent" to declare a dividend in 2010 due to consolidation opportunities and that it will not pay a dividend prior to the merger with Bwin Interactive Entertainment. The company said it would "continue playing an active role" in the consolidation of the sector after the completion of the deal early next year.