PartyGaming pick up

Online gambling firm PartyGaming has announced that poker revenues are on the slow road to recovery after being one of the online gaming companies hit hardest after the U.S clampdown on internet gambling.

Daily online poker revenues have slightly increased from around an average $637,000 in October to $721,000 in the past month. PartyGaming lost 75% of its poker revenues after it pulled out of the U.S, letting go 41% of its workforce in the process.

The recent small upturn in fortunes has led PartyGaming to monitor how smaller online operators have coped with the ban and explore buying opportunities.

"Bolt-on deals are very interesting right now," chief executive Mitch Garber said.

"We've had a chance to see how some of the smaller guys are dealing with - and in some cases cannot deal with - the lack of liquidity, after what happened in the U.S."

However, Garber refused to comment on speculation that rival 888 Holding's and Austria's Bwin.com were targets for PartyGaming, seemingly discounting them as targets and focusing on much smaller operators.

"There are a number of organisations out there that have a lot of skill and expertise, but after two months of not having U.S. business have become quite attractive, so those discussions are ongoing," Garber said.

“We're looking to add expertise and accretion to our existing business.”

Despite the improvement for PartyGaming, Deutsche Bank analysts have said that the drop in overall daily revenues to $921,000 was lower than predicted and consequently cut their forecast for 2007 core profit by ten percent to $133 million.

One of the worst aspects of the U.S ban on PartyGaming was its loss of its high rolling poker players, who deferred to privately owned poker web-sites that were ignoring the ban. 

“Overall yield per active player day has been affected by the loss of higher-raking players, but this has been partially mitigated by strong levels of new player sign-ups that have averaged over 1,400 per day,” said PartyGaming.

PartyGaming now receive 67 percent of its revenue from Europe, Africa and Middle East and 27% percent from Canada and Central and South America. PartyGaming’s unstable shares were up today to 28 pence, a rise of 1.8 percent.

Editor, Jackpot.co.uk - 2006-12-14 11:33:04




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