Punters have decided to take some profits in PartyGaming following a reasonable trading update.
The online gaming group said revenues in what it said was the seasonally weak third quarter had climbed 11% to $112.7m although poker revenue was down 8% as higher costs outweighed an increase in the number of players. And the fourth quarter has apparently got off to a good start, giving the company confidence for the full year.
Its shares however have slipped 1p to 281.5p. KBC Peel Hunt commented:
The most interesting aspect of the update is that the group's investment in poker is beginning to deliver some forward momentum, in player numbers and gross revenues at least. However, at this stage we continue to believe that the rating is up with events. Hold.
Daniel Stewart however was more positive. The broker said:
With expected material upside from both major geographic expansion opportunities (notably France and the US) and acquisitions (sportsbook deal still on the cards), we retain a highly bullish stance and repeat our buy stance and 366p target price.
