PartyGaming Q3 Revenue Up 11 Percent
October 15, 2009 6:26 amPartyGaming, the online gambling company based in Gibraltar, has just released its 3rd quarter report and the figures show the firm has recorded an 11% increase in its total revenue for Q3 to $112.7 million despite the period usually being slow with many players off on their summer holidays.
Revenue from casinos rose 2% to $49.2 million mostly because of higher player yields. Bingo sales increased sharply from $2 million last year to $13.2 million mostly due to the acquisition of Cashcade purchased in July for £95.9 million.
Poker operations, however, saw revenue slip 8% to $45.1 million mostly due to unregulated competition from US poker giants PokerStars and Full Tilt Poker. PartyGaming’s chief executive, Jim Ryan, commented on the poker results:
“Poker remains challenging from a competitive standpoint, but we are encouraged by the increased player traffic during September and into October. The group’s investment in poker is beginning to deliver some forward momentum, in player numbers and gross revenues at least. However, at this stage we continue to believe that the rating is up with events.”
Despite its shares falling 0.4 percent to 281.5 pence in early trading today, the stock has risen 88% from the beginning of the year and KBC Peel Hunt analyst Nick Batram is recommending a ‘hold’ position.
“The group’s investment in poker is beginning to deliver some forward momentum, in player numbers and gross revenues at least. However, at this stage we continue to believe that the rating is up with events,” he said
Playtech have forecast they are on target to achieve full year earnings in line with the 30.5% achieved in 2008 and that Q4 has started well as the colder seasonal weather means more people inside and online.