PartyGaming bets on a flush year despite US competition
ONLINE gambling firm PartyGaming said yesterday that it is confident about its full-year prospects, having made a strong start to the fourth quarter.
PartyGaming said its total revenue rose 11 per cent to $112.7m (£69.4m) in the third quarter from the previous quarter, despite it normally being a weak period for the industry as players take their summer holidays.
Casino revenue climbed two percent to $49.2m.
In Poker, where the company has faced increasing competition from unregulated US operators such as PokerStars and Full Tilt, revenue fell eight per cent to $45.1m.
However, chief executive Jim Ryan said the company had attracted new poker players through the launch of a number of initiatives including a loyalty programme and VIP offer.
“Poker remains challenging from a competitive standpoint, but we are encouraged by the increased player traffic during September and into October,” he said.
KBC Peel Hunt analyst Nick Batram reiterated his “hold” recommendation and 257p price target on the stock. The consensus for full-year pre-tax profit stands at $102m.