PartyGaming Produces Record Quarter

PartyGaming, owner of Party Poker, the world’s largest online poker rooms, reported a 54 percent swell in first quarter revenues, largely a result of a record number of new poker player signups.

263,254 new players signed up during the quarter, 23 percent more than during the first quarter of 2005. 39 percent of the new customers were from outside the United States, an important figure, as PartyGaming tries to reduce its dependency on American players. Recent legislation proposing a ban on internet gaming in the U.S. has tweaked the nerves of the industry, and PartyGaming aims to bring in more international customers in the coming year to protect itself, should the worst happen.

It is because of these fears that, even though revenues of $342.6 million exceeded estimates, PartyGaming’s share price declined almost 2 percent on the day.

Originally published April 18, 2006