PartyGaming Plc's first quarter performance results reveal that the world's most popular online gambling operator continues to grow, improving overall revenue by 54 percent to US$342.6 million and registering an all-time high 263,254 new real-money poker signups during the period.
The first quarter of 2006 was also one in which the company launched several new products that partly contributed to its success. Partycasino.com was launched in February and combined with the blackjack product to help propel net casino revenue substantially to $83.1 million (compared to $12.3 million in Q1 2005). During the quarter, PartyGaming also launched the first of its multi-lingual websites, making PartyPoker.com available in English, French, German, Portuguese, Spanish, Swedish and Russian. More foreign language versions of PartyPoker, in addition to multi-currency offerings, will be rolled out later in 2006.
"I am pleased to report that we have made a strong start to 2006," PartyGaming Finance Director Margin Weigold said. "The first quarter has seen continued strong growth in poker on the back of a record number of poker signups. Blackjack has remained robust with net revenue averaging $.7 million per day whilst the introduction of PartyCasino.com two months ago, as party of the fully integrated Party-branded platform, has exceeded our expectations and lifted overall net casino revenue (including blackjack) to over $1 million per day."
Weigold added that the launch of backgammon, the first of two new games planned for debut this year, is imminent (earlier indicated as end of June), but he did not state what the other game would be.
Net poker revenue in the first quarter of 2006 reached $259.5 million--a 23 percent improvement over Q1 2005 and a 9 percent improvement over Q4 2005, despite there being two fewer days in the quarter. Over 39 percent of the 263,254 new real-money signups who joined in the quarter came from outside the United States. Despite a record number or signups and the associated increase in the number of recreational players, as well the continued impact of large number of players playing blackjack, the yield per active player day increased to $18.5 versus $17.9 in the final quarter of 2005.
Meanwhile, net casino revenue in the first quarter of 2006 reached $83.1 million, despite PartyGaming's not yet having engaged in any major marketing initiatives for PartyCasino.com yet. Twenty-two casino games were available upon launch in February, and the number had grown to 31 by the end of the quarter. The remaining casino games are expected to launch before the end of the third quarter. Net casino revenue has increased by over $200,000 since the launch of PartyCasino.com, and 33 percent of PartyPoker.com players have played games on PartyCasino.com, while 23 percent of PartyCasino.com players have played on PartyPoker.com.
The amount gambled on PartyGaming's casino operations decreased marginally to $4.47 billion versus $4.5 billion in Q4 2005. The company says this is due to novelty factor wearing off of the integrated blackjack product that was introduced in October 2005.
The upbeat report has led PartyGaming's house broker, Dresdner Kleinwort Wasserstein, to upgrade its earnings forecast for the company by 6.2 percent for 2006 and by 5.6 percent for 2007, and Bridgewell's Charles Wilson told Reuters that he is also likely to upgrade his forecast of the company.
PartyGaming's new CEO and director, Mitch Garber, last Wednesday took over the role vacated by Richard Segal. Garber was granted an option over 27 million shares at 0.0015p each in PartyGaming.
Click here to view PartyGaming Plc's First Quarter Key Performance Indicators and Trading Update.