Party Gaming Adjusts Market Expectations

June 20 - Party Gaming today announced that it has adjusted its expected valuation down from US$ 10 bn to US$9 bn when it lists at the end of June.

The company has been hoping for a market valuation in excess of  US$ 10 bn, but is a press statement they have now predicted the opening share price to be in the range111p to 127p, which will result in a market cap of US$ 8.6 bn.

Even at the adjusted valuation, Party Gaming will be the largest listed online gambling firm by some margin, and will also be in the top100 listed companies in the United Kingdom.

Analysts are expecting the value to be well below the US$ 10 bn mark but only time will tell.

The drop in value comes on the back of some analysts raising concerns over their perceived over exposure to the US market, where online gambling restrictions pose potential problems. About 90% of Party Gaming's income is from the US.

To make matter worse, The Financial Times raised concerns over what it called "ambitious growth targets".

Party Poker's market share was reported to drop below 50% in April, it's lowest in over a year.

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