PartyGaming Reports Strong Fourth Quarter

PartyGaming, the owner of online poker giant Party Poker, reported a surge in fourth quarter revenues this week, as new player signups soared.

Analysts estimated top-line numbers for the fourth quarter at $294 million, but PartyGaming cruised past that, saying revenues jumped 65 percent to $320.3 million. Full results will be published February 28.

The company says that player activity has been excellent since it split off from its “skin” poker rooms. New customers, 229,277 of them, signed up in record numbers during the fourth quarter.

While poker is PartyGaming’s core business, it is not the only reason for the positive results. The addition of blackjack has been a boon, as well. Casino revenues for the firm skyrocketed to $82.3 million from $11 million, with 44 percent of its poker playing customers trying blackjack.

Poker revenues, for comparison, increased to $233.7 million, a 31 percent rise.

PartyGaming’s shares jumped 5.5% in early trading on the London Stock Exchange, but profit takers swooped in later, resulting in a 3% drop in share price on the day.

Originally published January 27, 2006