28-02-2006

PartyGaming, the world's biggest online gaming group, said on Tuesday its Chief Executive Richard Segal was stepping down after a year in which the group beat forecasts by boosting revenues 63 percent.

"Given the rapid growth of the company, he and the board agree that the CEO now needs to be located in Gibraltar along with all the other executive directors," PartyGaming (PRTY.L: Quote, Profile, Research) said in a statement.

Segal said he had declined the board's request that he move there due to his his strong family ties to London, where his wife and two children live.

Revenues were $978 million (562 million pounds) in 2005, compared to $602 million the previous year and an average analyst estimate of $975 million, said the owner of the PartyPoker and PartyCasino websites.

PartyGaming shares rose 2.3 percent to 133-1/2 pence by 9 a.m., valuing the group around 5.4 billion pounds.

PartyGaming's latest daily poker revenues averaged $3 million, up 9 percent on the final quarter of 2005, while daily blackjack revenues fell slightly.

The online casino division's latest daily win averaged $920,000, compared to $980,000 in the final quarter of 2005.