PARTY GAMING DELIVERS GOOD THIRD QUARTER RESULTS

26 October 2007

Online poker revenues ease, but casino and sportsbetting going well


London listed online gambling group Party Gaming has released its third quarter 2007 results, showing a 24 percent annual increase in group revenues to US$116 million, compared with US$93.3 million in the comparative period in 2006, and a 5 percent rise on the previous quarter.

Solid performances from the group's online casino operations and sportsbetting offset a slight decline in poker revenues, which dropped 3 percent to US$74.8 million. Casino operations generated a 158 percent improvement to US$36.7 million (US$14.2 million in 2006) and sports-betting income rose 91 percent to US$4.2 million (2006 : US$2.2 million).

Much of the quarter's improved performance came from strong growth in casino operations, the company said, and was achieved despite a 14 percent drop in yield per active player day from US$20.3 in 2006 to US$17.4 in 2007, following the loss of many of Party’s high-spending customers in the exit from the United States market.

The impact of the summer months, when online activity is traditionally quieter, was reflected in reduced third quarter new player sign-ups which were down 14 percent to 129 700, but this is offset to some extent by a particularly strong first half to the year, with the number of new player sign-ups up 44 percent on the equivalent nine month period last year.

The company said fourth quarter trading was looking promising, increasing 9 percent on the previous quarter and active players per day averaged 65 000, generating average daily revenues of US$938 000 and casino daily revenues of US$569 000.

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