Party signs up with Evolution; Salmon due to start as CMO in October

Jon Salmon’s remit and duties when he starts out in his new role as chief marketing officer for PartyGaming have not yet been spelt out but he is likely to replace Sabin Brooks, who has been group marketing director at Party for the past three years.  

Salmon is due to start his new role in October and has been managing director of Intercasino’s marketing agency Ads Dotcom for the past eight years and previously worked with PartyGaming chief executive Jim Ryan when both at CryptoLogic, the firm that supplies poker and casino software to Intercasino.

One industry source said Salmon, who is considered one of the leading executives in egaming marketing, viewed the opportunity of joining PartyGaming as “the chance of a lifetime”. PartyGaming has made numerous recent comments about the growing importance of brands in online gaming and Salmon has been successful at building the Intercasino brand through TV and print advertising.

PartyGaming also announced that its casino site PartyCasino will provide its players with live roulette, blackjack and baccarat tables. The firm has agreed a three-year partnership with live gaming technology firm Evolution Gaming to supply the three games in 24 multiple languages and currencies as it looks to enhance its casino offering.  

Ryan commented: “We believe ‘live casino’ will gain us access to players who enjoy and prefer the experience of watching croupiers dealing cards or spinning roulette wheels and calling ‘place your bets’ in real time - that’s great, live online gaming entertainment.”

Evolution chief executive Jens von Bahr said: "Evolution is changing the face of online casino gaming for players around the world with an innovative, unmatched live experience. PartyCasino is an industry leader at the forefront of change and we look forward to sharing a seat with them at the table where entertainment and fun is provided by our winning, leading-edge software.”

PartyGaming could also be facing a much bigger compensation payout to WMS Gaming Inc. than the US$2.67m originally awarded. WMS was seeking damages of $287m for trademark infringement but were awarded the much smaller sum by an Illinois court in July last year. They appealed the ruling and this week the Appeals Court found in their favour, stating the District Court made an error in law, though it is not yet clear what the new damages will be. Party said it believes the court action by WNS is without foundation. 

PartyGaming Plc Facing Multi-Million Dollar US Lawsuit

PartyGaming plc is facing the prospect of a $287 million compensation claim for trademark infringement following a decision Monday by the United States Court of Appeals for the Seventh Circuit.

  

In the case of WMS Gaming Inc. vs. PartyGaming plc, WMS Gaming argued 'persistent, knowing and wilful infringement' of its trademarks by PartyGaming.

The case centres on WMS's trademarks Jackpot Party and Super Jackpot Party, which PartyGaming is said to have infringed in the years between 2004 and 2006 through 'approximate and exact reproductions of the marks'.

After several failed attempts to persuade PartyGaming voluntarily to cease its infringing uses of WMS’s marks, WMS filed suit in federal district court seeking injunctive relief, damages, and an equitable accounting of the profits PartyGaming reaped from its use of WMS’s marks in the United States.

Despite receiving proper notice, PartyGaming chose to ignore WMS's lawsuit, leading in July 2007 to Judge Blanche Manning of the US District Court for the Northern District of Illinois issuing a default judgement against the company, including an award of $2.67 million in damages to WMS.

The amount of $2.67 million in damages was substantially lower than the $287 million sought by WMS based on PartyGaming's US profits during the period, leading to this appeal which was argued in February of this year and decided on Monday 8th September.

In their decision, Circuit Judges Rovner, Wood and Williams said they agreed with WMS's argument that "the district court …. made a fundamental error of law by failing to distinguish between WMS’s right to the defendants profits and its right to its damages."

The court found that  WMS had provided evidence of PartyGaming's profits from the United States, based on the company's own figures published in their annual report. "In the absence of evidence from PartyGaming showing that deductions are warranted, WMS is entitled to the revenues supported by its evidence," said Judge Wood.

"We add that while the figure WMS seeks, $287,391,140.70, is considerably larger than the 'damages' award granted by the district court, $2,673,422.10, the record shows that in a single year (2005), the defendants reported revenues of $977.7 million—nearly $1 billion.

"The record shows persistent, pervasive, knowing, and willing infringement for several years by PartyGaming, as it repeatedly refused to cease and desist even after receiving several forms of actual notice of its unlawful activity, from both the Patent and Trademarks Office and from WMS."

The Court therefore upheld WMS's appeal, reversing the judgment of the district court and ordering further proceedings consistent with this opinion.   

Party set for white label expansion and poker relaunch

PartyGaming is set to offer its flagship poker product to other operators on a white label basis in the forthcoming months in an effort to counter the dominance of the poker sites still taking US bets. PartyGaming chief executive Jim Ryan said the company had put in place all the elements that would enable it to compete strongly with the sites taking US bets.

While praising the group for transforming “itself into a truly international business” as he commented on its interim results this morning, he added: “The US sites will continue to spend their marketing dollars in Europe and we know the competitive environment is set to become even more challenging. But what’s interesting is how we plan to defend ourselves. We are about to launch the next generation PartyPoker platform in the near future along with a rebrand. The brand will become much more meaningful to the customer through our marketing and there will be an enhanced effort to improve our contact with the VIP players on PartyPoker. We will have a team dedicated to the players who have become good at poker on our site and we want them to have an amazing experience with and not go to another site.” As for the white label strategy, Ryan said Party would work with “like-minded operators” to create a new poker network.

The company added that there had been no further developments regarding any possible settlements with the US Department of Justice with regard to its US activities pre-UIGEA.

PartyGaming’s net gaming revenue for the first six months of the year increased 17% to US$254.8m, from US$217.4m over the same period in 2007, the company announced today, while clean earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations rose 76% to US$60.9m, from US$17.9m in 2007.

Party produced pre-tax profits from ongoing operations of US$30.3m compared with a US$32m loss last year and poker revenues rose 6% to US$ 153.9m, from US$144.6m in 2007 and poker EBITDA increased to US$36m, from US$22.8m last year.

Casino revenues were up 38% US$90m, compared with US$65m during the same period last year, thanks to higher player numbers and yields; bingo revenues rose to US$2m, from US$1.1m in 2007 and sports betting rose 36% to US$9m from US$6.6m in 2007.

Reshuffle at Party as Ryan brought in as CEO and O'Malia promoted to MD

PartyGaming has taken less time than perhaps anticipated in appointing a successor to current chief executive Mitch Garber, who will officially leave the company tomorrow.

Jim Ryan, who has been named as chief executive will start his new role after a handover of responsibilities. Ryan's experience includes roles as chief executive of white label solutions provider St Minver, at Excapsa, and at Cryptologic as chief financial officer.

Garber's resignation was announced in March, as was his intention to return to Canada. At the time it was speculated that it could take up to a year for a new chief executive to be put in place. PartyGaming said that Garber would remain "part of the handover process" until the end of July. Current chief games officer John O'Malia, who has been promoted to the newly created role of managing director will step in during the handover period.

O'Malia's new responsibilities will include the daily management of the group, and he will have a seat on the board.

In addition to these changes, current non-executive chairman Michael Jackson is to step down within the coming months. His role has not been filled. Jackson said: "The board is delighted to have appointed Jim Ryan after a rigorous search and selection process that considered a broad range of candidates."

He added: "Jim's experience, coupled with John O'Malia's proven success in managing PartyGaming's profitability enhancements over the past year, will be a powerful combination in driving the company forward and continuing to enhance the value and appeal of PartyGaming's brands and gaming products."

Ryan said: "I am hugely excited by the scale of the opportunity and with the support of PartyGaming' s board and management team, I am confident we have an exciting and prosperous future."

Senior independent director Rod Perry said that Jackson's stewardship in dealing with complex regulatory issues was "evidenced" by the company's successes. He said that Jackson's "experience and drive" has been "invaluable."

Party on track and confident for 2008

PartyGaming’s first quarter and key performance indicators published this morning revealed group revenue rose 21% to US$128.9mm, compared with US$106.2m on the same period last year, poker revenue was up 13% to US$80.7m, compared with US$71.6m last year, casino revenue was up 45% to US$43.5m, compared with US$30m last year. Sports betting revenue grew 4% to US$4.7m on US$4.5m in 2007.

Yield per active player day was up 19% to US$17.3, compared with US$14.5m in 2007, thanks to the group’s casino performing strongly, but real money sign ups dropped 30% to 171,800, compared with 244,600 in 2007. This was because of Party’s aggressive marketing strategy to boost player liquidity after the Unlawful Internet Gambling Enforcement Act, the company said. Party also paid the final consideration of €21m to Trident Gaming with regard to the acquisition of Gamebookers on 1 February 2008.

Mitch Garber, chief executive of PartyGaming, said: “As we enter the seasonally quiet period of the year, the business is performing well and there are a number of exciting developments in prospect. Over the next few months we will open our licensed Italian business, introduce a number of new branded online slot machines, and launch a completely new product vertical. The regulatory environment in Europe appears to be improving and the search for my successor is progressing and advancing positively. We remain confident about the group’s prospects for the full year.”

PartyGaming hires lawyer to save on fees

PartyGaming is taking its commercial work in-house to save money after hiring Victoria Allison from IWC Media to join the team at the online gambling company's Gibraltar HQ.

The company intends to expand its legal team with two more lawyers - one of whom will exclusively handle IP matters.

PartyGaming assistant general counsel James Elliot: "The aim is to bring in some new commercially minded assistants who'll be able to share some of the everyday workload so that we can limit our outsourcing only to where there's a requirement for specialist knowledge that it does not make sense to retain in-house."

The move will mean that PartyGaming's existing law firms will receive less day-to-day commercial work. They include Berwin Leighton Paisner, Olswang, Squire Sanders & Dempsey and Taylor Wessing. Freshfields Bruckhaus Deringer is PartyGaming's chief corporate counsel.

Elliot added: "Our panel law firms have always done a great job of offering excellent value for money. But when you compare the annual cost of an in-house two to four-year PQE with what that amount buys you in hours from a London law firm, it makes a lot of sense to go for the in-house hire."

The new hires will take PartyGaming's in-house team to 16 lawyers in total.

Garber to leave PartyGaming as yearly net revenues rise 41%

PartyGaming chief executive Mitch Garber will not be renewing his contract with the company beyond 1 May 2009. Garber, a Canadian national, said he planned to return to North America with his family and will remain with the firm until a successor is found.

Garber said: “PartyGaming is an extraordinary company. The challenges we have faced and overcome over the past 18 months have been no less extraordinary. There is never a good time to announce that you intend to leave a company, but I personally take great pride in the fact that the Company is delivering on its business strategy and is in great shape to exploit its full potential in the future.”

PartyGaming announced a 41% rise in net revenue from continuing operations for the 12-month period to the end of December 2007 to US$476m, compared with US$325m in 2006. Total group revenue however dropped 57% to US$476m, compared with US$1.1bn in 2006, reflecting the company’s exit from the US market after UIGEA.

The company recorded a drop in after tax profits to US$41.6m, compared with US$128.4m during the same period last year, while pre-tax profits came in at US$6.7m, compared with a loss of US$77.4m in 2006.

Clean EBITDA rose 119% to US$111.7m, compared with US$50.9m last year.

Non-executive chairman Michael Jackson commented: “These results are a testament to our chosen business strategy, keep us at the forefront of the industry and provide us with a robust and scaleable platform for growth. This has all been achieved whilst adopting a conservative, but we believe responsible view of the regulatory environment. Whilst our approach means that we continue to forego revenue opportunities in the short-term, we believe that such revenue streams are at risk and we remain confident that our chosen strategy will generate superior returns for shareholders over the long-term.”

Commenting on Mitch Garber’s decision to leave PartyGaming, Jackson said: “The board respects his decision to return to North America. Mitch has been instrumental in refocusing and rebuilding the business and delivering strong financial results in challenging circumstances. He will remain as CEO until a successor is found and has also agreed to remain available thereafter to ensure an orderly and seamless transition.”

PartyGaming’s New Chief Games Officer

Online poker group PartyGaming has created a new high-profile role for the former head of Gamebookers, the sports betting firm it bought in 2006.

PartyGaming said John O'Malia would be made its Chief Games Officer and take charge of its portfolio of games from online poker and blackjack to Internet bingo and sports betting.

PartyGaming bought the Bulgaria-operated and Isle of Man-controlled Gamebookers for $130 million in August of 2006 and has since turned it into its PartyBets.com site.

O'Malia's role is just below that of the firm's Chief Executive and Finance Director and in line with the firm's Operating Chief but the former city trader will not be a member of the Gibraltar-based firm's board.

O'Malia has been running sports betting companies since 2001 and spearheaded the development of BetBug.com with 1X Inc before engineering the purchase of BetBug and Gamebookers.com in 2005 as Chief Executive Officer of Trident Gaming.

Under O'Malia's stewardship Trident transformed and grew the Gamebookers business through aggressive online and offline marketing using a combination of guerrilla marketing and classic traffic-building and brand-building campaigns. After a series of smaller sports sponsorship campaigns, Gamebookers launched its shirt-sponsorship deal with French football team Nantes FC in August of 2006.

Party signs-up to Envisional for affiliate monitoring

PartyGaming has adopted and refined a new method for affiliate monitoring, after introducing experimental systems using artificial intelligence.

The system, created by Envisional, aims to toe the line between managing risk from affiliates, preventing security lapses, and encouraging entrepreneurialism, according to Ian Shircore, marketing director at Envisional.

Shircore: “Maintaining security with affiliates is not just an anti-fraud measure, there is a wider issue. That is: no country will think to regulate online gaming while companies cannot keep track of their affiliates.”

The issue of violations committed through affiliates is one which was highlighted at last week’s Combating Cybercrime conference. Examples of money laundering through affiliates were given by speakers including representatives from PartyGaming and Unibet, as well as the UK’s Serious Fraud Office. One attendee said that the industry had been “dragging its feet” in terms of affiliates, and that greater security was needed if the sector was to show its maturity.

However, it was also noted that the importance of affiliates for operators should not be underestimated, and that minor “offences” from what were termed “over-enthusiastic” affiliates, are dealt with most effectively by operators.

Shircore said: “If you think of how affiliate networks work, they are the very essence of entrepreneurial spirit. Nobody wants to crush that, and it will save time for the companies to just have to recognise what’s going on, and say, please don’t step over the line.

“In terms of affiliate monitoring, people desperately need to know what’s going on. The enforcement is pretty simple. The relationship between the operator and the affiliate is not necessarily damaged.”

Shircore added that the collaboration with Party had resulted in a product that was unusual for its use of artificial intelligence.

He said: “We are pushing the limits of artificial intelligence, and we have now a system with greater flexibility for the operator. The artificial intelligence follows links like a human, and uses human-like logic. It also searches images. We produced prototype systems which we worked on for PartyGaming. It’s been remodelled and refined slightly ‘in reality’ but it is basically the same concept.

“What they get is a pyramid of results – and the pyramid will show violations which at the top of the pyramid, are very serious, while at the bottom, are ones which they may choose to ignore.”

Party the ‘prettiest girl’ as Garber talks post-DoJ mergers

PartyGaming chief executive Mitch Garber is “extremely confident” that discussions with the US Department of Justice (DoJ) over a financial settlement with regard the company’s previous activities in the US will be concluded before the year is out.

According to Garber, such a resolution could herald a stampede of merger and acquisition (M&A) activity within the sector. “As an industry, once the DoJ situation is cleared, I believe there will be a very busy M&A market,” he said.

He added that as “the leader in online gaming, the most compliant and the most conservative” PartyGaming would be a consolidation target. “I think we are the prettiest girl at the dance,” he concluded.

Garber was speaking at the publication of the gaming giant’s fourth quarter key performance indicators which showed group revenue over the quarter rising 52% to US$120m (£60m) compared with last year. However, poker revenue declined 3% quarter on quarter. The company said this was the result of a restructuring of the groups’ loyalty programme.

In the four weeks since period close, Party said it had seen an improvement in the loyalty scheme situation with the amount of bonuses and PartyPoints deducted from revenue falling from 19% in the fourth quarter to between 14% and 15%.

Poker revenue year on year was up 23% to US$72.6m while casino revenue shot up 156% over the same period in 2006 to US$42.3m. The company said that cross-selling “remained the main source of growth” in this product area. The sports-betting operation, PartyBets, saw revenue rose 50% over the 2006 figure to US$5.1m. PartyBets has been promoted heavily in the UK within the past three months, with a series of adverts appearing on UK TV screens.

There were signs within the statement that PartyGaming was suffering alongside others from a marketing crush in Europe. “Along with a number of competitors, PartyPoker has lost a small amount of market share to those sites that continue to take bets from players located in the US and other countries from which we will not accept players for regulatory reasons,” the statement added.

Laughs at Party

There have been few laughs at PartyGaming since it retrenched last year after US hostility against online gambling, but John Davy's appointment to the board raises a smile. He is the founder of Jongleurs comedy clubs and the nominated representative of Ruth Parasol and Russell DeLeon , the PartyGaming founders and 28.4 per cent shareholders. Anurag Dikshit - the tech brains of the outfit and a 27 per cent shareholder - has nominated Emilio Gomez , a former senior partner of Baker Tilly in Gibraltar, where Party is licensed. Also joining the board are Lord Moonie , former junior defence minister, and Stephen Box , former finance director of National Grid and independent director at Michael Page.

http://www.ft.com/cms/s/0/77f0eedc-a9e9-11dc-aa8b-0000779fd2ac.html

Party goes to Hollywood

PartyGaming has announced its latest alliance, this time an exclusive licensing agreement with Paramount Pictures to develop a range of online slots based on four of the studio’s back catalogue.

The announcement came on the same day that Party issued a pre-close trading statement which said its financial performance was in line with expectations.

The company has also announced changes to the board which has seen founders Anurag Dikshit, Russell DeLeon and Ruth Parasol have placements appointed to represent their interests.

The new film-themed slot games will be available next year and will be based around Top Gun, The Godfather, Saturday Night Fever and Mission Impossible. They mark a first for the online gaming industry.

Party has had a busy few months, announcing deals with ITV, RTL in Germany and Sporting Index.

Mitch Garber, chief executive, said: “Popular brands are a differentiating factor in online gaming and this alliance will enhance and distinguish the quality of PartyCasino’s offer.”

Off the back of the trading statement, analysts at Dresdner Kleinwort have suggested the company should be on a greater P/E ratio that 16 times. The note forecasts 77% year-on-year growth for the fourth quarter and revenue growth expectations for 2008 of 28%.

Regarding the changes to the board, Dikshit, DeLeon and Parasol have placed two non-executive directors as board representatives - John Davy, Emilio Gomez.

Stephen Box and Lord Moonie have also been recruited. Parasol and DeLeon are 28.4% shareholders, and have nominated the founder of Jongleurs comedy club Davy, while Dikshit, who owns 27% of the company, nominated former senior partner of Baker Tilly in Gibraltar, Emilio Gomez. Life peer Lord Moonie is a former under secretary of state at the ministry of defence, and was MP for Kirkaldy between 1987 and 2005.

Party boss cancels planned share sale

Mitch Garber, chief executive at PartyGaming, has cancelled a planned sale of shares and said he will not be off-loading any more shares in the company this year.

Back in March, Party announced that Garber had agreed to a programme of share sales at the end of each calendar quarter. The company gave no further reasons for the decision. However, the news could spark speculation that Party is close to signing off a deal with the US Department of Justice regarding its previous activities in the US.

According to the March plan, in June Garber sold over 4.3 million shares at a price of just over 39p, netting approximately £1.7m US$3.4m), while in September he netted approximately £1.2m from the sale of 5 million shares at 24p.

Under the agreement with the board reached in March, Garber must retain a holding of at least 3.5 million shares. After the announcement yesterday, Garber has a holding in the firm of 8.75 million shares.

PartyBets doubles up with Sporting Index

PartyGaming, the world’s leading listed online gaming company, has launched a comprehensive fixed odds horse racing service on its PartyBets.com platform through an alliance with Sporting Index. The new service features full coverage of UK, Irish and premier international race meetings including unique early prices, ante post markets and specials.

All horse racing odds compilation and associated trading advisory services for PartyBets.com are being provided by Spin Services, a newly created wholesale division within Sporting Index. The PartyBets racing service launch is also being supported with an innovative promotion where winnings are doubled on the first and fifth bet for all new customers.

A spokesman for PartyGaming said: “The traders at Sporting Index are well known for being amongst the very best in the industry and have made the company the recognised world leader in spread betting. Teaming up with Sporting Index to expand our fixed odds betting services is a winning combination.”

Richard Glynn, CEO of Sporting Index, said: “Spin Services has been designed to assist the wider gambling and gaming industry with all its trading needs. We are delighted to be enabling PartyBets to offer its customers a first-class comprehensive horse racing service.”

http://www.partygaming.com/images/docs/070811_Sporting_Index.pdf

Party in German TV deal

PartyGaming has entered into an exclusive arrangement with German media giant RTL to provide an German-language dotnet poker site.

The move represents a significant step in one of PartyGaming’s major markets.

The deal with RTL Interactive will see the launch of a new RTLpoker.de website containing advertorial links to PartyPoker.net, Party’s free-to-play website. The RTL.de website has over six million users per month.

This is the second media-related deal signed with the past few months following on from the deal signed with UK broadcaster ITV in September.

RTL Interactive will also promote its poker offering and poker school via TV spots on the leading German TV channel RTL TV.

A PartyGaming spokesperson emphasised this was “more than a white label”.

PartyGaming chief executive Mitch Garber said: “We are thrilled to have been chosen by RTL Interactive to provide an online poker school to their users. This is a hugely exciting opportunity for us to work with the German internet division of Europe’s leading broadcaster.”

Garber upbeat as Party goes for full on offering

Mitch Garber, PartyGaming chief executive, praised the operational changes the company had driven since the company’s US exit and the fact that the group had addressed its structural weaknesses, as it revealed rising revenues in its third-quarter key performance indicators yesterday.

“In the space of a year, we have gone from being an English-only operator to providing our products in 12 different languages and three currencies,” Garber said. “Our casino has performed particularly strongly and the product has improved dramatically through our acquisitions of Empire Online and Intercontinental Online.”

One of the landmark dates for Party will be 1 January 2008, when Germany publishes its State Lottery Treaty outlining the regulation of gambling services. Germany is Party’s second biggest market after the UK representing around 19% of revenues. Garber said: “The momentum is clearly going the way EU law says it should be going. It is hard to imagine Germany discriminating against EU-licensed operators and the European Commission has shown it is willing to take action against governments that do. Therefore we are looking at Germany in that European context and it would be very surprising if they took an aggressive position. If that happened you would see us oppose it more aggressively than you have seen us oppose any similar positions from governments, where frankly there has been less of a financial incentive to take the lead in opposition.”

Garber said Party had no current plans for further acquisitions and could not foresee further partnerships such as the one Party has with UK broadcaster ITV. The group did not have “that many weaknesses left” in it, as it has acquired or developed the main product lines it needed to be a fully diversified online gaming operator. “We have a lot of work and growth ahead of us now that we are established as a multi-lingual, multi-currency operator with our own casino and bingo software and our own sportsbook. Growth in the non-poker areas of the business is now a key focus for everyone at PartyGaming.”

A new UK advertising campaign for Party’s sportsbook will be launched in the near future. However, Garber said there were many other markets Party was targeting and the UK was already the most competitive betting market in the world. Party would not be spending “a disproportionate amount of its marketing budget on the UK”, he added.With regards to its dealings with the US Department of Justice, Garber said Party was aware it would probably have to pay a fine but they were talking “months and not years” in terms of coming to an agreement with the US authorities.

The poker liquidity issues Party suffered after the US exit had been addressed throughout the first and second quarters of the year during which time marketing and affiliate-related distribution costs had risen significantly. They had now been brought into line to between 43% and 45% of the company’s revenues and the company was now focusing on attracting back the high rollers it lost after the US internet gaming ban.

Party revealed a 24% annual increase in group revenue to US$116m (£56m), compared with US$93.3m in 2006, and a 5% rise on the previous quarter. Poker revenue fell 3% to US$74.8m, compared with US$76.9m in 2006, but was up 3% on the second quarter. Casino revenues were up 158% to US$36.7m, compared with US$14.2m in 2006. Sports-betting income rose 91% to US$4.2m, compared with US$2.2m last year and 100% up on the previous quarter.

http://www.egrmagazine.com/item/2219/23/5/3

Party’s revenues continue to rise

PartyGaming’s third quarter key performance indicators have highlighted a 24% annual increase in group revenue to US$116m (£56m), compared with US$93.3m in 2006, and a 5% rise on the previous quarter.

Poker revenue fell 3% to US$74.8m, compared with US$76.9m in 2006, but was up 3% on the second quarter. Much of the group’s revenue was generated by a strong performance from its casino, up 158% to US$36.7m, compared with US$14.2m in 2006. Sports-betting income rose 91% to US$4.2m, compared with US$2.2m last year and in the previous quarter.

Party said its quarterly poker results reflected “a full period benefit to the operational changes introduced during the second quarter of 2007 that helped to deliver a 10% increase in yield per active player day versus the previous quarter to US$13.2”.

The company said much of the performance had been driven primarily by strong growth in its casino and was achieved despite a 14% drop in yield per active player day from US$20.3 in 2006 to US$17.4 in 2007, following the loss of many of Party’s high-spending customers after the passing of the Unlawful Internet Gambling Enforcement Act and Party’s related exit from the US.

Third quarter new player sign-ups were down 14% on 2006 to 129,7000, reflecting the quieter summer months, however Party said this followed a particularly strong first half to the year, with the number of new player sign-ups up 44% on the equivalent nine month period last year.

The company said fourth quarter trading had increased 9% on the previous quarter to US$1.6m and active players per day averaged 65,000, generating average daily revenues of US$938,000 and casino daily revenues of US$569,000.

Analysts from Deutsche Bank said the strength of current trading and the continued development pipeline “give us increased confidence that our 2008 estimate forecasts should be achievable”.

http://partygaming.com/images/docs/072510_Q3_2007_KPIs__Trading_Update.pdf
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