PartyGaming Q3 net revenues up 24 pct year-on-year; confident on FY UPDATE

LONDON (Thomson Financial) – PartyGaming PLC, the UK-listed online poker firm, reported a 24 pct increase in third quarter net revenue compared with the previous year and said it is confident about prospects for the full year.
Third quarter net revenue totaled 115.7 mln usd, including a 3 pct reduction in poker revenue to 74.8 mln usd, a 158 pct rise in casino revenue to 36.7 mln usd, and a 91 pct increase in sports betting revenue to 4.2 mln usd.
Compared with quarter two, total revenue rose 5 pct, with poker up 3 pct, casino up 3 pct, and sports betting up 100 pct.
Growth was achieved despite a 14 pct reduction in yield per active player compared with the previous year reflecting the loss of a number of higher value players following the passing of the US Unlawful Internet Gambling Enforcement Act in Oct 2006.
That legislation forced PartyGaming to close its US-facing operation.
PartyGaming achieved average daily revenue of 1.26 mln usd during the third quarter period.
The group said the volume of new player sign-ups in what is a seasonally quiet period was down 14 pct compared with the previous year and 18 pct versus the second quarter.
However, it pointed out this was after a particularly strong first half in 2007 and said, for the year to date, the number of new player sign-ups was still 44 pct ahead of the same nine-month period in 2006.
PartyGaming said the number of unique active players and daily average players both grew strongly year-on-year but were down versus the previous quarter which had been boosted by very strong growth in new player sign-ups in the first half but also reflected a reduction in the frequency of play, particularly during the peak European holiday season in July and August.
The group said a recovery in player yields meant that, overall, net revenue per day in the third quarter averaged 1.26 mln usd, up 4 pct on the previous quarter and 24 pct year-on-year.
PartyGaming said it remains confident about prospects for the full year and beyond.
matthew.scuffham@thomson.com
msc
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