World Poker Tour Loses $9.6 million in 2007'Transition Year' WPT as Revenues Fall |
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The NASDAQ-quoted World Poker Tour yesterday reported full-year revenues down almost 25 percent to $21.7 million at the end of December 2007 compared to $29.3 million to the end of 2006.
The WPT had a net loss of $9.6 million in the year ending December 2007 compared to net earnings of $7.8 million in the previous trading period. The main reason for the loss was the drop in revenues and a $2.3 million write-off of online gaming software. The 2006 figures were also bolstered by a gain of $10.2 million from the sale of PokerTek stock.
Quarter-on-quarter, fourth-quarter revenue dropped 14 percent between October and December 2007 to $5.1 million compared to
$5.9 million in the same period in 2006. The Company also made a net loss between October and December 2007 of $1.8 million, compared to a net loss of $1.1 million in the 2006 period.
The company had no debt at the end of 2007 and total cash, cash equivalents, and investments of around $31 million.
Chief Executive Officer Steve Lipscomb said, “2007 was a transitional year for WPT Enterprises. We have been focused on shifting our business from a traditional media and entertainment company to a multimedia entertainment and gaming company. We plan to derive future revenues from sponsorship, television, and online and mobile subscription opportunities.”
Lipscomb concluded, “Augmenting these new initiatives is our online marketing strategy that will focus on improving the product, localizing the content, and executing a compelling marketing plan to drive players to our site. With our positive momentum and world-class brand.”
For the first quarter of 2008, revenues are expected to be in the range of $4.5 million- $5 million.
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