PartyGaming Announces Encouraging 3rd Quarter Results
29th October, 2007
PartyGaming has just announced their third quarter results, with an impressive 24% revenue jump from $93.3 million last year to $115.7 million this year. They also received a 5% jump from the 2nd quarter’s earnings.
These numbers do not include the US business sector, which was shut down roughly a year ago, after the anti-gambling laws banned the transfer of money to online gambling companies. In terms of a breakdown of earnings, the casino revenue more than doubled to $36.7 million from $14.2 million. Poker revenue, on the other hand, experienced a 3% drop to $74.8 million after losing high-value players to sites catering to US customers. The sports betting revenue, though a small percentage of overall profit, still grew 91% this year to $4.2 million. According to Deutsche Bank analyst Jon Tarasewicz, the bookie world should prove to be more profitable in upcoming quarters:
“In our view, there is still considerably more to come from the sports book in the fourth quarter and into 2008,” Tarasewicz said.
The encouraging third quarter results have caused a 10% jump in shares, and Tarasewicz considers the stock to be a good buy at the moment.
“The strength of current trading and the continued development pipeline give us increased confidence that our 2008 forecasts should be achievable, and we reiterate our buy recommendation of the stock,” he suggested.
The success of Partygaming comes as good news to the gaming industry as a whole, seeing that the recent restrictive laws in the US and the new smoking ban in the United Kingdom have put industry figureheads up in arms. This announcement further reaffirms the strength in the gaming market, the profibility of the industry, and the popularity of the sport.
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