PartyGaming released third-quarter KPIs this morning highlighting a 24 percent increase in revenue to $115.7 million against the previous-year period, driven primarily by solid growth in casino, it said.
Casino revenue was up 158 percent to $36.7 million compared to Q3 '06 figures, the company said, despite a 14 percent reduction in daily active player yield, which it attributed to high-roller losses suffered after the U.S. Unlawful Internet Gambling Enforcement Act was enacted last fall.
"The year-on-year drop in [daily active player yield] reflects the migration since October 2006 of a number of high-value players to competitor sites that continue to accept players from the United States," it said.
Poker revenue dropped 3 percent to $74.8 million, with net daily revenue increasing 2 percent against Q2 '06 figures to $813,000.
Party said that the new player sign-ups were down 14 percent for the quarter, but for the first nine months of 2007 were up 44 percent against the same period in 2006.
Sports betting revenue doubled over the previous quarter to $4.2 million, with daily active player yield benefiting from a return to more normalized gross win margins (5.6 percent) after a run of disappointing sporting results during Q2 '07.
"We are continuing to execute our stated business strategy and this is reflected by our solid financial performance in the year to date," said Party Chief Executive Mitch Garber. "The formation of business alliances with companies such as ITV are [sic.] important steps toward achieving our full potential and we remain confident about the group's prospects for the full year and beyond."
On the LSE, shares in the company were up 3.75p, or 13.64 percent, to 31.25.