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The first business Quarter of 2008 has been positive for Gibraltar-based Party Gaming.  The online gambling group can thank their online casinos for the positive numbers.  Party Gaming’s online casinos made significant contributions to the companies 21 percent overall growth in revenues.

Group revenue lifted from $106.2 million to $128.9 million in only the first three month of 2008.  This is mostly due to a 45 percent year-on-year revenue growth to $43.5 million at their online casinos.

All portions of Party Gaming’s online casino activities experience growth on some level.  Poker revenue was reported an $80.7 million, a solid 13 percent hike.  Sports betting had only a modest 4 percent boost at $4.7 million.  Unfortunately, the total average gross daily revenue fell 1 percent to $1.75 million at the very beginning of Quarter 2.  The company attributes this fall to a seasonally quiet period of the year.  This period has suffered slightly weaker poker returns, but better than anticipated business at their online casinos.
 
“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,” said Mitch Garber, CEO of Party Poker.

“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.”
 
“We remain confident about the group's prospects for the full year,” added Garber.

London analysts are much more skeptical than Garber.  Paul Leyland, an Arbuthnot analyst said, “They are down in absolute terms in the beginning of the second quarter, which means that their full-year revenue is going to look like a bit of a struggle.”

Numis analyst Richard Carter considered Party Gaming’s trading update “slightly disappointing” overall, but he did reiterate his company's “buy” recommendation for Party Gaming Stock.

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