The Faraj List of Exploding Stock Part 4.05

PartyGaming ‘may look at acquisitions’
By Elizabeth Judge


PARTYGAMING, the London-listed owner of PartyPoker, the world’s largest internet poker site, hinted at acquisitions yesterday after it unveiled a sharp rise in revenues.

The group, which last month saw more than £2 billion wiped off its market value after warning of slowing growth rates, posted a 32 per cent rise in revenues to $220 million (£125 million).

It also pledged that it “remains comfortable” with market expectations for this year.

Shares in the group, which have more than halved in value since its float in June, gained 10 per cent — making it the biggest riser in the FTSE 100 — as investors regained confidence in the battered internet gaming sector.

Richard Segal, chief executive, said: “There has been a material uplift in performance across all of the group’s activities. In short, we have upped the ante.”

He also hinted that the group might look to acquisitions. “The IPO gave us acquisition currency and we have looked at a number of companies and we will continue to do so,” he said.

The market has speculated that Betfair, the betting exchange could be a possible target for the group.

Earlier this month PartyGaming announced plans to freeze out players of rival sites.