PartyGaming pursues takeover deals

LONDON (Reuters) - Online gambling group PartyGaming PRTY.L said it was continuing to pursue takeover opportunities with a number of parties as it reported a 2 percent decline in second quarter revenue.

The group, which is reported to have held merger talks with Austria's bwin BWIN.VI, said on Tuesday it was looking to play an active role in consolidation of the industry and was confident about its future prospects.

"Whilst progress on consolidating the online gaming industry has been slower than expected, we remain committed to playing an active role and are continuing to pursue opportunities with a number of parties," said Chief Executive Jim Ryan.

Analysts say the online gaming industry is ripe for consolidation because of its fragmented nature and a mooted deal between PartyGaming and bwin had been seen as a potential catalyst for a wave of takeover activity.

PartyGaming, which operates the PartyPoker and PartyCasino sites, said overall trading had been in line with the board's expectations despite the summer weather and the World Cup providing alternative attractions for gamblers.

Market expectations for full year earnings before interest, tax, depreciation, and amortization range between $144.7 million and $163.7 million, with the consensus at $149.2 million, according to a Thomson Reuters I/B/E/S poll of 9 analysts.

Shares in PartyGaming closed on Monday at 220.8 pence, valuing the business at 892 million pounds.

(Reporting by Matt Scuffham; Editing by James Davey)