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World Poker Tour Loses $2.8 Million

Quarterly reports finds revenues from online gambling and television licensing in decline.

Monday 12th May 2008

America’s World Poker Tour (WPT) Enterprises Incorporated has reported a ten percent overall increase in quarterly revenues compared to the same period last year but a $2.8 million net loss for the quarter.

The Nasdaq-listed firm stated that online gaming revenues decreased from $600,000 over the first quarter of last year to $200,000 for the most recent period, reflecting the lower levels of player activity on the Cryptologic network versus the site operated by WagerWorks in 2007.

Overall revenues increased to five million dollars compared to $4.5 million for the first quarter of 2007 due primarily to a $900,000 rise in hosting and sponsorship earnings largely from international television deals that did not exist in the prior period.

WPT stated that business highlights included the delivery of seven episodes of the World Poker Tour Season VI television series, the premiere of Season VI on the GSN Network, continued progress in the development of its China National Traktor Poker Tour and the launch of ClubWPT.com. The firm also reported an agreement with Cryptologic for the provision of a full suite of online casino games along with the development of Spanish and German language sites expected to go live by June.

The Los Angeles-based company stated that domestic television licensing revenues were down from $2.4 million for the first quarter of 2007 to $2.1 most recently. It stated that this was due to lower per-episode license fees under the GSN contract. However, international television licensing revenues increased 69 percent to $800,000 due to lower than expected third-party distribution costs.

WPT stated that it had no debt and total cash, cash equivalents and investments in marketable securities of approximately $26.9 million.

“Our first quarter results reflect the delivery of seven Season VI episodes, increased international television and sponsorship revenues and moderate progress in our online gaming and ClubWPT.com businesses,” said Steve Lipscomb, President and Chief Executive Officer for WPT.

 


Source: OnlineCasinoNews