PartyGaming has reported a 9 percent rise in revenues for the three month period to the end of September. The company also said that its merger with the sport-focused gambling operator Bwin was going ahead as planned.

The merger with Bwin which is due to be completed before the end of March 2011 will create the largest internet gaming group in the world and will help PartyGaming which focuses on poker and casino further exposure within the world of online sports betting.

The gaming giant reported a 5 percent drop in third quarter poker revenues which shows how much the company has struggled to compete with the likes of PokerStars and Full Tilt. Performance in the French markets following deregulation earlier this year is “the light at the end of the tunnel” for poker claims the PartyGaming chief executive, Jim Ryan.

The company has managed to attract six times as many players before the country ring-fence the operation and finance director, Martin Weingold expect the markets initiatives to show a profit next year.

The new French poker network has attracted six times the number of players it had before the country ring-fenced the offering; and Martin Weingold, finance director, said he expected it to be profitable next year.

“Controlled step-by-step regulation will be the model for the future,” Mr Ryan added, suggesting that the ability to drive revenue growth through adverts as one advantage of working in regulated markets.

Other operations of PartyGaming, such as sports betting, casino and bingo reported improvements in the quarter. PartyGaming’s single biggest product saw revenues up 2 percent to €34.9m (£31m), bingo revenues, which benefited from the acquisition of Cashcade, were up 36 percent to €13.1m. Total revenues for the group were €85.3m (€78.3m).

The company suggested that trading was going well and Mr Ryan added: “We have begun to see the normal seasonal upturn,”