PartyGaming issues profit warning

Party Poker owner PartyGaming today warned that it would not meet profits forecasts for the year after it was hit by the cost of building up its player base.

Shares in the online gaming firm slumped by as much as 11% after the group said stronger-than-expected new player sign-ups led to increased up-front costs, meaning earnings for 2007 would be "significantly below the current market expectations".