World Poker Tour Reports Fourth-Quarter LossesOverall Revenue Decreased in 2008 |
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World Poker Tour Enterprises reported yesterday that its net loss from the fourth quarter totaled $3.2 million, contributing to a $12.5 million loss for 2008.
The publicly-traded company, which produces some of the largest poker tournaments in the world, brought in $2.6 million in revenue in the fourth quarter, down from the $5.1 million in revenue it had in the fourth quarter of 2007. WPTE’s 2008 revenue amounted to $15.5 million, a decrease from $21.7 million in 2007.
The WPTE’s end-of-year report said the decline was “a result of a decrease in domestic television license fees, lower product licensing revenue and lower domestic sponsorship fees. Four fewer episodes of the WPT television series aired in 2008 due to a change in the release pattern of the WPT television series and the per episode license fee decreased by $177,000 for 17 of the episodes.”
WPTE CEO Steve Lipscomb reiterated in an earnings conference call that the company was making significant strides to prepare for the upcoming year.
“I want to emphasize that we have taken significant steps to right-size our company and turn the business around,” said Lipscomb. “While our metamorphosis is by no means complete, we believe that we are taking the necessary steps to reposition WPTE for long-term profitable growth.”
The company also announced this week that it had extended its broadcast license with Fox Sports Net.
China was a key focus area for WPT in 2008. The WPT China Traktor Poker Tour was established and hosted a number of regional events throughout the year.
“Overall, we met three big goals for our China operation in 2008,” said Lipscomb. “We began Season 2 of the WPT China National Traktor Poker Tour, we have completed the development of our integrated online and mobile poker product, and we have begun earning revenues from this venture.”
According to WPT press release, the company is searching for a strategic partner to invest in its WPT China business. The report stated that “the cash needs to support the growth in this business are greater than the Company is willing to expend. The level of 2009 business activity by the WPT China business is dependent on the outcome of that search.”
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