PartyGaming’s fourth quarter trading update offers some impressive reading. Following a disappointing third quarter result, the poker giant’s revenues have shot up 65 percent to $320.2 million US dollars. Revenue for the same period in the previous year was recorded at $194 million.
The publicly-listed poker firm also reported net online poker revenues increased by 31 percent on last year’s figures. The average daily revenue was US$2.5 million compared with US$1.9 million in 2004, the highest since PartyGaming’s site PartyPoker began in August 2001.

But perhaps one of the most rewarding figures to be revealed is the growth in membership from gamblers located outside the U.S. Over 30 percent of the new 850,000 members that joined PartyGaming in 2005 are based in Europe and Scandanavia.
The company’s chief executive Richard Segal had previously discussed PartyGaming’s intentions to reduce its dependence on the U.S. market. Partygaming’s fourth quarter trading results are obviously a sign that the firm’s marketing campaign has been effective.
“Excluding the UK, Europe provided 7.5 percent of our group revenues in Q4 compared with Q3 2005 while the UK supplied 2.5 percent revenues for the same period,” Segal stated. “North American players provided 82 percent of our revenues compared with 84 percent in the same period.”
Other spokespeople from the firm cited success in retaining members and the increase in those signing up as responsible for the company’s phenomenal growth. The number of new players visiting the company’s site increased to 229,227 during the quarter, bringing the total number of new memberships for the year to 839,317. This exceeded PartyGaming’s target membership figure of 800,000.

A second factor contributing to Partygaming’s fourth quarter success has been the decision to cross-sell the game of blackjack through the Party Poker website. While traditionally PartyGaming has operated as an exclusive poker site, 44 percent of all players experienced blackjack at the Party Poker site for the first time. “The success of blackjack has transformed our business and proved very popular with a large number of poker players,” Richard Segal said.

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