LONDON, Aug 29 (Reuters) - Online gaming firm PartyGaming reported
a drop in the number of people playing its poker games in the last two months,
overshadowing first-half results and sending its shares lower on Friday.
PartyGaming, which runs the PartyPoker and PartyBets Web sites, said its
trading since June 30 had been in line with management's expectations except for
poker which continued to be "slightly softer" than expected, sending its shares
down 2.7 percent at 207.75 pence at 0902 GMT.
In the 8 weeks to Aug. 25, PartyGaming said average gross daily revenue
was $1.6 million per day. Average active poker players totalled 50,800 per day.
In a research note, Deutsche Bank said gross revenue was down 9 percent
in August compared with July, while the average number of active daily poker
players in July and August was 19 percent lower than in the first half.
Deutsche Bank, which kept a 'hold' recommendation and 280 pence target
price on the stock, said the more cautious poker outlook led it to reduce
forecasts for 2008 EBITDA by 5 percent to $148 million and net revenue by 6
percent to $511 million.
"Whilst trading in poker since June 30 has been slightly softer than we
would have expected....the board remains confident about the group's future
prospects," said PartyGaming Chief Executive Jim Ryan.
PartyGaming said clean earnings before interest, tax, depreciation, and
amortisation rose by 76 percent in the six months to June 30 to $64.9 million.
The consensus forecast had been for EBITDA of $57.7 million, according to
figures supplied by the company.
(Reporting by Matthew Scuffham; Editing by Erica Billingham) Keywords:
PARTYGAMING/
tf.TFN-Europe_newsdesk@thomsonreuters.com
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