PartyGaming Reports Interim Results
The online poker operator PartyGaming Plc revealed today its interim results and stated that its profit rose 25 percent in the first half as revenue gained 81 percent.
According to Bloombergs shares of PartyGaming fell as much as 37 percent to below the IPO price after the company said growth rates are slowing. The stock dropped as much as 58.75 pence to 98 pence in London, wiping about 2.4 billion pounds ($4.4 billion) from the company's market value.
The highlights of the interim results state among other things that revenues went up 81% to $437.4m (2004: $241.5m) reflecting continued strong growth in poker.
“Following the successful IPO of the Group in June, we are delighted to be announcing our first set of interim results as a listed company. The Group’s performance further demonstrates the strength of our brands, the quality of our gaming products and the financial attractions of our business model,” Richard Segal, Chief Executive, commented.
According to Segal PartyGaming continues to enjoy strong positions in each of its core markets. As expected, whilst the online gaming market and poker in particular continues to show strong year on year growth, the rate of growth is continuing to moderate. As it does so, the Group will continue to adapt its marketing strategy and infrastructure to provide greater focus on customer retention and player value.
“Looking forward, the Group’s financial strength, strong market positions and scale provide a unique platform from which to grow the business through further international expansion, the development of new gaming products and additional distribution channels,” Segal said.