Party Gaming has released its first interim report this week, covering
the six months to end June 2005 - its first since listing on the London
Exchange earlier this year.
The report showcases revenues up 81 percent to US$437.4 million (2004:
$241.5 million) reflecting continued strong growth in poker, although
chief executive officer Richard Segal writes: "As expected,
whilst the online gaming market and poker in particular continues
to show strong year on year growth, the rate of growth is continuing
to moderate."
Similar comments last month have been blamed for a cooling off of
some interactive gaming stocks.
In the poker operations, key performance indicators showed strong
growth in real money sign-ups which were up by 73 percent and active
player days rose 102 percent although there was a 7 percent decline
in yield per active player day to $17.8 (2004: $19.2)
Commenting on the results, Segal said: "PartyGaming continues
to enjoy strong positions in each of its core markets. As expected,
whilst the online gaming market and poker in particular continues
to show strong year on year growth, the rate of growth is continuing
to moderate. As it does so, the Group will continue to adapt its marketing
strategy and infrastructure to provide greater focus on customer retention
and player value.
"Looking forward, the Group’s financial strength, strong
market positions and scale provide a unique platform from which to
grow the business through further international expansion, the development
of new gaming products and additional distribution channels."
In June 2005, the PartyPoker network had a 51 percent market share
in ring games and a 40 percent market share in online tournaments.
It was the driving force behind the group’s results, reveals
the report, delivering an impressive financial performance with overall
poker revenues up by 89 percent to $412.0 million (2004: $217.5 million).
Marketing operations have been effective, and the management team
has increased its focus on consolidating its position in the US poker
market as well as expanding its presence in a number of international
markets such as the UK, Scandinavia, Germany and Australia.
During the reporting period, the proportion of real money sign-ups
on PartyPoker coming from countries outside the US increased from
10 percent to 19 percent in the period. Revenue growth in the US year
on year was 77 percent compared with 2004 whilst outside the US it
was 110 percent. As a result, the percentage of total revenue generated
outside the US in the first half was 14 percent compared with 12 percent
in the previous year.
A detailed program of international marketing campaigns has been scheduled,
with the objective of continuing to grow the group’s international
revenues in the second half.