PartyGaming, the London-listed owner of PartyPoker, the world’s largest online poker house, sought to reassure investor concerns over the internet gaming sector today, saying it "remains comfortable" with market expectations for 2005.

The group, which runs poker and casino games, said revenue across its business in the third quarter increased by 32 per cent to $220 million, from $166.1 million for the same period last year.

It also said it had increased poker revenues by 10 per cent since separating its players from those of partner websites such as Empire Online earlier this month.

Shares in the PartyGaming, which have more than halved in value since floating in June at 116p, gained 6.5p, or 8.4 per cent, at 84.56p as speculators closed short positions on the stock.

To track PartyGaming shares click here.

Elsewhere in the online gaming sector, Empire Online climbed 5.5p to 89p, Sportingbet 15p to 275p, and BETonSPORTS 1.5p to 133p in early deals.

After a flurry of activity earlier this year, confidence in online gaming was shaken on fears of softening growth rates. Shares in Party Gaming lost a third of its value on September 6 after the company revealed its own stellar growth in customer numbers was slowing.

"Revenues for the third quarter were in line with consensus expectations and ... since the end of the third quarter, there has been a material uplift in performance across all of the group’s activities," Richard Segal, chief executive, said.

PartyGaming, which attracts an average of 130,842 players to its sites each day, also said that the initial response to cross-selling its casino games to PartyPoker.com customers had been "much stronger than anticipated".

PartyGaming has been boosted by a partial split, announced this month, from partner websites such as Empire Online.

It has ring-fenced its own customers from those of partner sites - or "skins", which act as an online shop fronts working on a commission basis. On Tuesday, Empire warned that full year net profits would be 10 per cent below consensus estimates following the split.

"We remain on target to launch a fully integrated, Party-branded platform featuring a shared purse and the first of our new games in the first half of 2006. We remain confident about the group’s prospects," Mr Segal said.

Its number of customers, measured by total active player days, rose 53 per cent year-on-year to 12.2 million.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax