PartyGaming makes gains as revenue stabilises PartyGaming (LSE: PRTY.L - news) , which was hit hard by US legislation restricting online gambling, said on Thursday its daily online poker revenues had stabilised and it was starting to see improvements in the number of new customers coming to its website.
The news helped its beleaguered shares rise 4.4 per cent to 29.5p.
The company said it had suffered from the defection of some of its bigger gamblers to privately-owned online poker sites which are choosing to ignore the ban.
“Overall yield per active player day has been affected by the loss of higher-raking players, but this has been partially mitigated by strong levels of new player sign-ups that have averaged over 1,400 per day,” it said in a trading statement.
To offset the loss of its US customers, the group said it now took 67 per cent of its revenues from Europe, the Middle East and Africa, and 27 per cent from Canada and Central and South America.
It also said the realignment of its infrastructure since the passing of the US laws was almost complete and that it was on track to realise substantial annual cost savings.
As a result of the US ban, PartyGaming has cut 945 jobs, or 41 per cent of its workforce.
Excluding sports betting, gross daily revenue in the last four weeks to December 11 averaged about $921,000 and overall player volumes averaged about 52,000 active players a day, the company said.
Gross daily poker revenues average $721,000, having hit a low of $637,000 after the US law was passed.
Total casino revenue, including bingo and backgammon, has been steady, averaging about $199,000 per day.
