In the three months to 30 September 2009, the Group delivered total revenue of $112.7m (2008: $117.7m). This represented an increase of 11% over the previous quarter that was largely due to a maiden contribution from Cashcade following its acquisition on 23 July 2009. Excluding Cashcade, revenue was down 4% versus the previous quarter, in line with the normal seasonal pattern seen in previous years. Brands like Foxy Bingo and Think Bingo are part of the Cashcade umbrella.

The impact of  a relatively strong dollar and a fiercely competitive poker market each impacted the Group's trading performance during the period versus the prior year. The Group demonstrated its strength in player acquisition with 208,000 new player sign-ups, a 51% increase over the same period the previous year of 137,600.

Consolidated yield per active player day fell by 11% versus the previous quarter to $15.4 (2008: $20.0) due in part to higher bonus costs driven by the acquisition of Cashcade and the costs associated with the new retention initiatives.

Sports betting revenue increased strongly by 31% versus the previous quarter to $4.2m despite poor sporting results thanks to an improved gross win margin of 4.9% (Q2 09: 4.4%) and lower bonus costs on the back of initiatives taken in the previous quarter. However, adverse currency movements meant that revenue was down by 18% year-on-year (2008: $5.1m).

Bingo revenue increased sharply to $13.8m (2008: $2.0m) reflecting the inclusion of Cashcade for the first time.

Commenting on the third quarter KPIs, Jim Ryan, CEO, said:

"Our performance in the seasonally weak third quarter was in line with our expectations, with revenue up 11% versus the previous quarter. Casino once again delivered a robust performance with solid growth in player yields. We have increased the gross win margin in sports betting and remain focused on operational improvements to enhance the quality of our product and risk management tools. Poker remains challenging from a competitive standpoint, but we are encouraged by the increased player traffic during September and into October on the back of our new retention initiatives such as the enhanced loyalty programme, improved VIP offer and automated reactivation campaigns. Finally, the addition of Cashcade transformed our presence in the $1.5 billion online bingo market and was the driver behind the substantial increase in our bingo revenue.

"Our strategy is to drive both our B2C and B2B offerings and become a top three player in all of our product verticals. Having launched sites on behalf of four new customers in the quarter, our B2B strategy is progressing well. The important fourth quarter has started strongly, as expected, and we remain confident about the full year outlook."

Bingosupermarket has heard numerous comments among affiliates concerning margins being squeezed at Cashcade brands and it will be interesting to see whether or not deteriates in future quarters.

Party Gaming Shares were down 10% in early trading this morning.