PartyGaming Feels Flush as Profits Rocket

Thursday July 17, 2008

Party Poker and online gambling group PartyGaming Plc is shrugging off a Euro 2008-inspired internet gaming downturn and claims of unfair competition to confirm it remains on track to increase profits this year by 40%.

With most of its customers now in Europe, the company today admitted its punters spent most of June watching the football rather than playing online poker.

PartyGaming Plc also highlighted continued strong competition, particularly from sites that get round US regulations and accept players from the States - a swipe at the Poker Stars and Full Tilt Poker internet gaming platforms.

But while PartyGaming revenues have fallen since the company last reported at the end of April, a decision to drop marketing and advertising spend during Euro 2008 means first-half profit margins improved.

Analysts said that puts the company in line to report underlying profits of $156m for the year, up from last year's $112m.