News

PartyGaming shares slide as much as 10 percent

LONDON, England -- As reported by Bloomberg: "PartyGaming Plc, the owner of the PartyPoker online-gaming brand, reported stagnant third-quarter sales after the dollar strengthened and competitors that still take bets from the U.S. lured poker players away.

"PartyGaming slid as much as 10 percent in London trading. Sales were $117.7 million, the Gibraltar-based company said today in a statement, little changed from $118 million a year earlier and below Deutsche Bank AG's $119 million estimate. The company is 'confident' of meeting the consensus of analysts for increasing annual profit, the statement shows.

"Gains by the dollar, PartyGaming's reporting currency, pinch its growth by eroding the value of the sales it generates in other monies. The dollar climbed in the quarter as market turmoil sparked a rush for the safety of Treasury debt. Web gamblers tend to favor sites with the most activity, putting PartyGaming at a disadvantage against competitors that still deal with Americans.

"...Revenue from poker, the main sales generator, fell 15 percent overall in the quarter and dropped 6.6 percent in the six weeks after the period ended on a gross daily basis, the statement shows. The number of new poker customers slid 12 percent in the quarter from the prior three months, partly because of deferred marketing spending..."