PartyGaming rapid revenue growth

Shares in PartyGaming, the online gambling operator, jumped 11% yesterday after rapid growth in revenue from its casino and sports-betting units more than offset a slowdown for its core poker business.

PartyGaming, owner of the PartyPoker online betting group, said third quarter revenues increased 24% and the company said it was confident about prospects for the full year.

The Gibraltar-based company’s shares jumped 11%, up 3p to 30½p, making it the best performer in the FTSE-250. Group revenues rose to £56.4 million in the quarter to end of September.

While income from poker was down 3% to $75 million, casino revenue more than doubled to $37 million.

The figures do not include its US business as this was closed down 12 months ago after the online gambling ban in the US. Since the ban, PartyGaming has been pushing to cross-sell its poker players onto casino games like Blackjack.

Analysts said the results as ‘pretty solid’, but highlighted that its rivals, such as Sportingbet, may have better prospects as the sports betting market is less established than casino gaming.

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