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MESSAGE
FROM THE CHAIRMAN OF THE EXECUTIVE BOARD
Ladies and Gentlemen,
The financial year ending 31 October 2005 was a challenging one.
Groupe Partouche is continuing to feel the effects of the overall depressed economic environment
which has led to top-line organic growth grinding to a halt, marking the end of an era that began with
the installation of slot machines in the early 1990s.
The constant increase in the taxes levied on gaming contributes to the already difficult environment
we are facing. Our results have naturally been affected but we have adopted a highly-focused response
strategy.
We have reaffirmed our confidence in the future of the business, reinforcing our leadership role with our acquisition of Groupe de Divonne which operates three casinos in the French Alps, one in the Swiss Valais, and a fifth in the Jura region. And, at the avant-garde of our profession, we have
also taken the initiative to enhance employee relations by increasing remuneration for our employees’
night work, giving them the credit we feel they deserve… Finally, our discussions with oversight bodies,
in which we expressed our desire to enhance the appeal of our establishments in the face of incoming
regulations such as broad-ranging customer identification checks, have come to fruition: they have
finally agreed to modernize and develop gaming in France. This initiative, promoted by Isidore Partouche,
is best expressed by our “Pasino” concept at Aix-en-Provence and St-Amand-les-Eaux, which have
already been well-received by our friends and customers, and both establishments have performed
exceptionally in the current economic environment.
In line with these objectives, we will be celebrating the inauguration of the Le Havre Pasino in its
permanent location in June 2006. We expect this establishment to create a real buzz in a city classified
as a UNESCO World Heritage site. But above all, marking our firm determination to participate as a major
player in the future of our sector, we have resolved to enter the new era of gaming powered by new
technologies and media, where Groupe Partouche will continue to hone its expertise. To this end, we have
made strategic acquisitions in the only interactive gaming channel in France, Cash TV, as well as in a
mobile phone company, Quedesjeux.com, which already operates our games on its main platforms. We
are convinced that all these efforts will allow us to attain our goals and specifically to shore up our operating
margin by continuing to keep our operating expenses under very tight control. We also intend to optimize
our scope of consolidation by divesting certain less strategic assets. I am proud to be at the helm
a resolutely future-focused Group, one that is aware of the challenges that lie ahead and is determined
to overcome them.
I know that we can count on your support.
Patrick PARTOUCHE
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