 Party Poker players have been spending less money |
Shares in Partygaming, which operates the world's largest online poker site, have fallen more than 30% after it warned future market growth could slow. The firm, which listed in London in June, said revenues rose 80% in the six months to 30 June to $437.4m (�237.7m), from $241.5m a year ago.
Profits rose to $186.3m from $146.6m a year ago, but the Party Poker owner said growth in revenues could slow.
The firm's shares fell 51.75 pence, or 33%, to 105p on Tuesday.
Before trading started, the Gibraltar-based company had a stock market value in excess of �6bn.
It had been expected to join the FTSE 100 - the index of the UK's most highly valued listed companies - when the reshuffle of the FTSE indexes takes place on Wednesday.
However, the sharp decline in its share price now makes this less likely.
Customer focus
Partygaming became the largest company to float on the London stock market this year when its shares started trading in June.
In its first results statement since its flotation, the company said revenues from its core poker business had increased 89% to $412m.
The firm said it continued to attract more players from outside the US and that its current trading was in line with expectations.
But it warned that player turnover had increased while their average spending had fallen 7%.
"Whilst the online gaming market and poker in particular continues to show strong year on year growth, the rate of growth is continuing to moderate," said chief executive Richard Segal.
"As it does so, the group will continue to adapt its marketing strategy and infrastructure to provide greater focus on customer retention and player value."
Casual players
One analyst said the trading update had given the market a "shock".
"Poker isn't dead but the talk of 45% growth now looks unrealistic," said Robin Chhabra, from Evolution Securities.
"Poker operators are having to attract casual players who are not as profitable as the hard core and that is changing the economics of the business."
Partygaming has been linked with a possible bid for Empire Online, the internet gaming firm which is the subject of takeover speculation.
Empire Online has been approached by internet betting firm Sportingbet about a potential �790m offer.
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Poker isn't dead but the talk of 45% growth now looks unrealistic
