Partygaming Results

[Martin]

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Poker slowdown hits PartyGaming shares

Shares in PartyGaming, the online poker operator which came to market in June in the biggest UK initial public offering for 5 years, slumped 25 per cent to 116.8p in morning trade in London on Tuesday after it said customer growth rates were falling.

The company, which is poised to join the FTSE (news) 100 at its next quarterly reshuffle, also released its maiden interim results.

PartyGaming said pre-tax profits rose 21 per cent to $186.3m in the six months to June 30 on revenue up 81 per cent at $437.4m.

But investors concentrated on the fall in customer growth rates, acknowledged by Martin Weigold, finance director, who offered a cautious assessment of PartyGaming’s chances.

“I think that the rate of moderation of growth in the poker market might be slowing more quickly than anticipated,” he said.

“At this stage it’s difficult to know whether the trends that we’re seeing in active player days are a blip or part of a longer-term trend,” he added.