Firm behind EverestPoker.com reveals a 19 percent year-on-year drop in revenues for the third quarter of $37.184 million.
Wednesday 30th December 2009
Taipei-based GigaMedia Limited, the firm behind online poker site EverestPoker.com, has announced its financial results for the third quarter showing a 19 percent year-on-year drop in revenues to $37.184 million.
GigaMedia recently announced the sale of 60 percent of its Everest Gaming brand to Mangas Gaming that will see the French firm add the liquidity of EverestPoker.com to its BetClic.com poker product.
The Taiwanese operator stated that its financial results for the third quarter were negatively affected by ‘economic conditions and strong competitive pressures in Europe’ along with ‘substantial marketing and other expenses surrounding new online game initiatives in Asia’. It further revealed that its gaming software and Asian online games businesses delivered worse than expected performance during the period.
GigaMedia reported a loss in income from operations for the third quarter of 2009 of $3.285 million, which was down from a profit of $5.836 million for the same period in 2008. In addition, income from continuing operations posted a shortfall of $3.207 million compared to a surplus of $2.889 million for the same period last year.
“We faced tough market conditions and strong operating challenges in the second and third quarters in our gambling software and our Asian online games businesses and did not respond as well as we should,” said Arthur Wang, Chief Executive Officer for GigaMedia.
“We were successful, however, in forging a powerful strategic alliance in Europe, which we believe will be very value creative and, as a side benefit, free up management time and financial firepower for our planned expansion in Asia.”
GigaMedia reported negative earnings before interest, tax, depreciation and amortisation for the third quarter of ten million dollars, which is considerably worse than the profit of $14.424 million it made over the same period in 2008 while its cash reserves decreased seven percent to $96.267 million.
“We remain confident in the strategic position of our Asian online games business and intend to expand aggressively by mergers and acquisitions and organic growth,' said Thomas Hui, President and Chief Operating Officer for GigaMedia.
“Focus on improving our pipeline, enhancing scale and strengthening execution capabilities will position us strongly to rebuild solid business momentum in 2010.”
