|Empire has delivered a rise in third quarter net gaming revenues: $1.7m ahead of their expectations at $31.4m, generating net operating income of $16.1m. Nevertheless the company’s shares took a plunge as PartyGaming announced the migration of its players onto a new software system separate from that of its skins. |
PartyGaming has moved PartyPoker.com to a newly integrated operating platform. Empire Poker along with PartyGaming's other skins will remain on the original platform.
According to Empire this finally puts a line through all the speculation surrounding whether PartyGaming was going to renegotiate Empire's contract. On the flip side this causes some near term uncertainty surrounding Empire's player activity and yield per active player given that the liquidity at Empire Poker will be reduced.
“Although the announcement to migrate PartyGaming poker players away from Empire's creates near term uncertainty in the group's poker forecasts, we think the groups excellent track record, low current valuation of 9.3x 2006 earnings, a 3.2% yield to December 2005 and the increasing contribution of Noble Poker and Club Dice together with the newly developed backgammon brand ‘65.com’ should in our view limit the downside to Empire's share price,” a spokesperson for Empire Poker stated.