Home » OCW News » July 2010 » PartyGaming Shares Up Despite Drop in Q2 Revenues

PartyGaming Shares Up Despite Drop in Q2 Revenues

Date published: 6 July 2010

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Despite reporting a two percent drop in its Q2 revenues compared with its Q1 revenues, such is the confidence in the giant LSE-listed online gambling operator PartyGaming Plc, that its share price rose by 4.2 percent this week.

PartyGaming has attributed the decline in its second quarter revenues to a decrease in online poker activity as a result of the 2010 FIFA World Cup. Put simply, many poker players have chosen to watch the World Cup than play online.

As such, the firm is confident that its Q3 revenues will reflect those players returning to its top-rated online poker room, PartyPoker.com. That and the fact it has a strong acquisition strategy and is growing its online casino business.

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PartyGaming is expecting an increase in its year on year revenues by 28 percent. In Q2, its online poker revenues dropped by 13 percent, while its casino revenues increased and its bingo and sports betting revenues remained the same.

Said PartyGaming CEO Jim Ryan in a statement, 'We are pleased with the relatively robust performance of our business compared to many other consumer facing businesses in what remains a challenging economic environment.

'And while progress on consolidating the online gambling industry has been slower than expected, we remain committed to playing an active role and are continuing to pursue symbiotic opportunities with a number of parties,' he said.

In terms of acquisitions, in July last year PartyGaming acquired Cashcade, parent company of Foxy Bingo, for £96 million, and in November WPT Enterprises, parent company of the World Poker Tour (WPT), for $15.3 million.