PartyGaming Customer Growth Slows, Revenues Rise

Despite a slowdown in new signups, PartyGaming reported revenue growth of 24 percent to $115.7 million for the third quarter of 2007. 

The third quarter is typically a slower period for online gambling, as the prime European holiday season cuts right through it.  Thus, new signups were down 18 percent from the second quarter.  They were also down 14 percent from the third quarter of 2007, but this is easily explained by the fact that PartyGaming still accepted U.S. customers prior to the UIGEA.  Despite all this, new signups are still 44 percent higher than the first three quarters of 2006.

The UIGEA also caused PartyGaming to lose many of its high stakes U.S. players, creating a 14 percent drop in the yield per player. 

Even with the signup slowdown and lower yield per customer, the numbers added up to increased revenues.  Poker revenue at Party Poker was down 3 percent to $74.8 million, but was more than made up for by the 158 percent increase in casino revenue (to $36.7 million) and 91 percent increase in sportsbook revenue (to $4.2 million).