10/21 Financial updates - Party and Empire

[Sniper]

Party...

PartyGaming (PRTY.L: Quote, Profile, Research) was a bright spot after a positive update [nL21265410].

The gaming company, whose volatile shares have halved since it warned in September its rapid growth was moderating, closed up 10.3 percent after it said it was comfortable with analysts' 2005 revenue forecasts and expected a seasonal pick-up as winter approaches.

"At the current share price, we find the scale of the opportunity for PartyGaming to fix its problems and deliver growth too compelling to ignore," Citigroup analysts said as they told investors to buy the stock.

Empire...

Online poker operator, Empire, has issued a profit warning, announcing that full-year net profit for 2005 will be around 10 per cent below analysts' predictions.

The warning comes just days after online giant PartyGaming announced it was distancing itself from third party 'skin' websites which direct traffic to the business.

In a statement, Empire said it had experienced a sharp slowdown in poker revenues since PartyGaming called an end to the partnership and shifted all of PartyPoker.com players to a new operating platform.

[Zygote]

i wonder how long party will remain a good hold.

[Sniper]

PartyGaming third-quarter revenue rises 32% (UK:PRTY) By Sarah Turner
LONDON (MarketWatch) -- Online gaming company PartyGaming (UK:PRTY) said Friday that third-quarter sales rose 32% to $220 million, after poker revenue increased 38% to $209.1 million. Poker revenue were boosted by an increased number of new real money players signing up to play on the company's sites, with over 209,000 players added in the quarter compared to 183,000 added in the same period last year. Casino revenue during the quarter dropped $2.1 million to $11.0 million. The company also said that, since the end of the third quarter, there has been a material uplift in performance across all of its activities after it moved its poker site to a stand-alone platform and as the initial response to cross-selling casino games to poker customers has been much stronger than anticipated. The company remains comfortable with consensus forecasts for revenue and adjusted EBITDA for the current financial year.

[Sniper]

LONDON (MarketWatch) -- PartyGaming, the online poker operator, rebounded to lock in hefty gains Friday as third-quarter performance met forecasts and it reiterated the current-year view.

PartyGaming (UK:PRTY: news, chart, profile) ended up 10.3% to 86 pence, though that's lower than its IPO price of 116 pence at the end of June and all-time high of 179.5 pence.

PartyGaming lost a third of its market value in September after warning that revenue growth was slowing.

The company said Friday third-quarter sales rose 32% to $220 million, after poker revenue increased 38% to $209.1 million.

Casino operations didn't do as well, with revenue down $2.1 million to $11.0 million. Analysts at Numis Securities noted that the drop came from a fall in activity from high-value players.

The company also said there's been a material improvement in performance across all of its activities since the end of the third quarter after it moved its poker site to a stand-alone platform. And response to cross-selling casino games to poker customers has been stronger than anticipated, the company added

It remains comfortable with current-year consensus forecasts, an outlook Numis analysts called "bullish."

Numis also said Friday's statement on outlook should provide some market reassurance and help restore sector confidence.

Peers reacted strongly to the results. Betonsports (UK:BSS: news, chart, profile) added 2.3%, Empire Online (UK:EOL: news, chart, profile) gained 7.2% and Sportingbet (UK:SBT: news, chart, profile) increased 9%.

[Sniper]

Link to the official Party Press Release

[tomdemaine]

I'm smiling right now because I bought Party at 74 right after the split. The analysis my broker site sent me has Party trading at 160 by next year. I don't think they really have any clue as they don't know the industry like us players do. Does anyone think I should sell when/if it hits 100 or hold on for the ride?

[Sniper]

care to post their analysis?

[tomdemaine]

it's 2 pdf's one from citigroup and one from UBS don't know if I can post pdf's.