Partygaming Revenue Rises on Casino Growth

Online gaming firm PartyGaming reported a 24% rise in third-quarter revenue on Thursday and said it remained confident about its prospects for the full year, sending its shares up 4%. Group revenue rose to $115.7 million (£56.5 million) in the three months to September 30, helped by strong growth in casino games, where revenue jumped 158% to $36.7 million. Average gross daily revenue rose by 9% in the three weeks ended October 21 from the third quarter to $1.59 million.

"The formation of business alliances with companies such as ITV are important steps towards achieving our full potential and we remain confident about the group's prospects for the full year and beyond," Chief Executive Mitch Garber said in a statement.

Analysts are expecting 2007 EBITDA (earnings before interest, tax, depreciation and amortisation) of $103 million, according to Reuters Estimates.

PartyGaming extended its deal with ITV to provide the broadcaster with branded online betting, casino and bingo games in September and is seeking similar deals with large European companies. The firm is looking for new ways to boost revenue as it faces stiffer competition for poker players and struggles to compensate for the loss of U.S. gamblers following an effective U.S. ban on Internet betting year ago. Shares in PartyGaming rose 4.5% to 27-3/4 pence.

"The current trading statement indicates that player numbers are showing the anticipated seasonal pick-up into Q4," Deutsche Bank analysts said. "The strength of current trading and the continued development pipeline give us increased confidence that our 2008 forecast (of $182 million in EBITDA) should be achievable."

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