PartyGaming Shows Promise in Loss

The UIGEA hit PartyGaming hard, but the company is showing signs that it is digging out of its huge hole.

For the first half of 2007, continuing revenues rose 42 percent to $213 million, while related profits climbed 29 percent to $36.9 million.  When taking into account discontinued U.S. operations, the company showed a net loss of $50.6 million.  To compare to last year, PartyGaming made a profit of over $298 million in the first half of 2006.

In the meantime, PartyGaming saw over 400,000 new customers signup during the first six months of 2007, an increase of 83 percent from the same period last year (non-US customers).

Deutsche Bank, encouraged by the news, increased its forecast for the company, prompted a 23 percent jump in its stock price to 28p.