PartyGaming Revenue grows on 2Q 2008

PartyGaming has just posted their interim results up to June 2008, and they show increased revenues in all of the company’s ventures.

The total revenue for this half year grew 17% compared to last year’s revenue at the same point: while 2007 saw $217.4 million, 2008 revenues reached $254.8 million.

The greatest growth was in the Bingo department, where revenues increased an astounding 82%, nearly doubling in a year from $1.1 million to $2 million. PartyGaming credits their UK growth for this increase.

The next biggest growth came in the casino department, as PartyCasino revenues shot up 38% growing from $65.1 to $89.9 million thanks to a larger player base and more action at the tables, perhaps due to the many new slots and games that have been introduced this year.

PartyBets also showed significant growth – last year’s revenues of $6.6 million became $9 million this year, for a respectable 36% increase due to an increase in betting volume, possibly sparked by the Olympics, the WSOP and the American presidential elections.

PartyPoker was the only small letdown, but it still showed growth. The main earner for PartyGaming, PartyPoker brought home $144.6 million last year and increased by 6% for revenues of $153.9 million on the first half of 2008. PartyGaming management is a little disappointed, but they expect to see more growth as the year goes by.

PartyGaming’s CEO Jim Ryan made the customary statement explaining the results and outlining the company’s plans for the next few months. These are some highlights from his address:

In the 8 weeks ended 25 August 2008, average gross daily revenue was $1,601,600. 

In poker, new player sign-ups averaged 993 per day and there were on average 50,800 active players per day, generating average gross daily revenue of $835,300. 

Our poker business continues to grow but is being held back by the continued competition from those sites that accept players from the US. 

The imminent relaunch of PartyPoker will be at the heart of (focusing on customer base) initiative and should foster further growth of our existing franchise.

Whilst trading in poker since 30 June 2008 has been slightly softer than we would have expected, with a number of new initiatives underway, including the relaunch of PartyPoker and our refocused strategy in place, the Board remains confident about the Group’s future prospects.