World Poker Tour Revenue Declines but Margin GrowsTelevision Revenue Drop Partially offset by ClubWPT income WHile Costs Decline Boosts Margin |
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World Poker Tour Enterprises, the owner of the World Poker Tour, saw second quarter 2009 revenue fall to $4.6 million compared to $5.1 million in the same period in 2008.
The company said this was due to lower television and hosting income in the U.S. though it did indicate that the figure fall was partially offset by ClubWPT and TV revenues outside the U.S.
This compares to a period of revenue growth in the first quarter of 2009.
Costs also fell to $1.9 million in the second quarter of 2009, compared to $2.8 million in the second quarter of 2008. The decline was due to lower production and distribution costs for series seven of its TV shows.
Overall this meant growth in gross profit margins for the WPT television series 
increased to 53 percent in 2009 compared to 39 percent in 2008.
Other costs such as selling, general and administrative expenses fell to $2.3 million in the period compared to $5.8 million in the second quarter of 2008. This was as a result of lower personnel-related costs and lower selling and marketing expenses due to the shut down of the WPT-branded online gaming website.
In March 2009 the company shut down its WPT China operation incurring costs of $95,000. The company lost $581,000 loss from WPT China operations in the second quarter of 2008.
Income from continuing operations moved into the black to $370,000 in the second quarter of 2009 compared to a $3.3 million loss in the second quarter of 2008.
As of June 28, 2009, the WPT Enterprises had total cash, cash equivalents and investments of $21.3 million.
Steve Lipscomb, President and CEO of WPT Enterprises, said, “We completed our second successful quarter demonstrating the significant progress we have made in our turnaround efforts to position the Company for future profitability. FSN completed the initial airing of 26 all-new episodes of Season Seven of the World Poker Tour television series across the U.S. in July as a part of FSN’s Sunday sports block. We also filmed our first Season Eight tour stop in high definition and FSN will air Season Eight of the World Poker Tour television series beginning in late 2009 or early 2010.”
WPT Enterprises investment in mobile gaming operator Cecure was recently written down to zero as the company went into administration.
The company has recently been making high profile moves into the European and African markets with upcoming stops in Slovakia and Morocco.
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