PartyGaming Fights Back – Trading Update

Online gambling group PartyGaming reported a 52% increase in revenues for Q4 2007 (compared with Q4 2006). Revenues of $120 million in the quarter resulted in PartyGaming's highest quarterly revenue post-UIGEA.

PartyGaming runs the popular Party Casino and Party Poker brands. Pre-UIGEA, Party Poker was the world's largest online poker room, but PartyGaming's online casino and sportsbetting products are leading the revival.

Online casino revenues climbed 156% to $42.3 million in Q4 2007 and sportsbetting revenues rose to $5.1 million, an increase of 50% over the same period of the previous year.

PartyGaming reported lower affiliate costs and customer bad debts would result in a higher than expected profit margin for 2007, some much-needed good news for faithful PartyGaming shareholders who have seen the value of their stock plummet over the last 16 months due to the fallout from the UIGEA.

PartyGaming CEO Mitch Garber commented on the Q4 Key Performance Indicators:
"We are delighted to have delivered another strong performance. We continue to build on the four pillars of our strategy: growing the player base, localising the customer offer and broadening the product base whilst acting responsibly and this strategy continues to deliver strong financial results. These results show that we have built a solid platform for growth in the post-UIGEA world and we remain confident about the Group's future prospects."

Despite the good news, shares in PartyGaming (LSE: PRTY) traded down today to 27.5p (at time of writing).

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