Internet gaming firm Sportingbet reported a profit increase of 71% during the first 10 weeks of the current financial year due in large part to Internet poker room Paradise Poker which the company purchased last year.
Since acquiring the site, Sportingbet has posted a 66% increase in games at Paradise Poker, the world's third largest online poker room.
It further experienced a 50% rise in gambling by its sports betting customers, who generate 91% of the firm's total revenue. In the U.S., sports gambling was up 34% while in Europe it increased by 86%. Before tax profits in 2004 were listed at 8.3 million pounds as compared to 40.8 million this year. (All statistics listed are counted from this year up until July 31.)
Subsequent to its announcement yesterday, Sportingbet shares rose 9.4% valuing the firm at GBP 968 million at close. This is a positive change for the gaming company which had seen its shares fall by a fifth in the last month due to PartyGaming's dire warning of slow industry growth. Speculation has since arisen suggesting that PartyGaming's plateau in growth was an isolated event in the industry that only affected the gaming giant's poker site, PartyPoker.com.
PartyGaming and Empire Online also saw their stocks increase in value by close on Tuesday: PartyGaming shares rose by 9.7% and Empire Online's by 8.8%.