PartyGaming Pleased with 2006 Profits

2007 February 10, Jonny Vincent

Mitch Garber, chief executive of PartyGaming, announced yesterday the online gambling group expected to post a full-year profit of over $140 million.

PartyGaming reported a net profit of $293 million in a bumper 2005, however developments in the latter half of 2006 saw PartyGaming's profits crash. The Gibraltar-based company withdrew from the US market following the signing of the Unlawful Internet Gambling Enforcement Act (UIGEA), a move which resulted in much of their value being wiped out as shareholders pulled out.

However, PartyGaming has been steadily building since the setbacks, reaching peak player numbers almost as high as before their US pull-out. The cash-rich company has also been heavily involved in acquisitions and will likely be a market leader in online gambling's drive into the Asian market and Russia.

Shares in PartyGaming received a boost from Garber's comments, and they closed yesterday at 31.5p.

PartyGaming will release their trading report for 2006 on March 1.