Party Gaming, Party Poker's Owner, Announces Major Revenue Increase In Their Latest Numbers

A fourth quarter trading update has been released by Party Gaming, the planet’s major online poker room site. It shows some remarkable results.

Party Gaming is the owner of Party Poker, a public company listed in London that owns the leading online poker room.  The site attracts millions of poker players from around the world.

Compared with the US$194 million earned for the same period in 2004, Party Group revenues for the quarter of US$320.3 million reflected a 65 percent increase. For their entire industry, net online poker revenues (with the exclusion of skins) were increased by 31 percent as compared with US$233.7 million for the previous year.

According to a Party Gaming spokesperson, the growth demonstrates the actual enlargement in player sign-up figures and the expansion in player yield.

The latest blackjack and online casino game presentation appears to have diverted poker players, in as much as the three months up to December 31 2005, the actual yield per active player day improved by only 8 percent, and it was down from US$19.1 in comparison with the same period in 2004.

The number of additional real money players who were playing on Party Poker improved to 229,227 during the quarter. This brought the overall number for that year, of real money signups to 839,317. This was in access of Party Gaming’s declared target of 800,000.

During the fourth quarter, the average daily revenue was US$2.5 million in comparison with the sum of US$1.9 million for that same period in 2004. This represents a quarterly period all time high, since the inception of the PartyPoker site in August 2001, according to the company.

Of those signing up, over 30 percent derived from outside the USA. The European Union (EU) and Scandinavian countries provided the majority of the players.

Party Gaming chief executive, Richard Segal is reported as saying that with the exception of the UK, Europe supplied 7.5 percent of the group’s revenues in the fourth quarter as compared with the third quarter of 2005. During that same period the UK supplied 2.5 percent of the revenues. It was, according to Segal, the North American players who provided 82 percent of the company’s revenues in comparison with 84 percent for that same period a year earlier.

During the fourth quarter, net online casino revenues were US$82.3 million. This was way ahead of the US$11 million achieved in the third quarter of 2005. Although sign-up numbers were comparable to prior quarters, cross-selling blackjack through PartyPoker.com with 44 percent of all active poker players during that period also playing blackjack, resulted in a significant upturn in casino figures according to the company.

Daily net casino revenue achieved an average of US$ 900 000 per day, with the strong performance of blackjack, in comparison with a previous year’s average of $100 000.

Segal reports that during the most recent quarter, 44 percent of those who were active Party Poker players in addition played blackjack. This had a substantial and continual impact on the group’s profitability. The blackjack success transformed their casino business, proving very popular among a large number of the site’s poker players. The launching of the fully-integrated platform and shared purse in the first half of 2006 is to be Party Gaming’s next major milestone according to Segal.

In contrast to recent press reports, Segal also said that the ongoing legal dispute between Party Gaming and Empire Online regarding the October 2005 termination of the ‘skins’ agreement, would be lengthy and protracted. Segal adds that although some uncertainty exists as regards litigation, PartyGaming has great confidence that it will achieve a successful outcome.

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