Everest Poker for Sale as Revenue DownGigamedia Confirms Sale Discussions as Recession Bites into Poker Revenue |
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Gigamedia, the publicly-quoted parent company of Everest Poker, yesterday confirmed it was in advanced discussions with two parties for the sale or strategic partnership relating to its poker and casino offerings.
It also reported a decrease in poker revenue for the first quarter of 2009 of 27 percent compared to the first quarter of 2008.
The $21.6 million earned from poker between January and March 2009 was also down 10 percent on the last quarter of 2008. The company said this was due in main to the adverse economic climate in Europe and the depreciation of the euro against the U.S. dollar.
Active depositing real-money players held firm on the previous quarter, totaling 183,000 while 45,000 new depositing real money players represented growth of three percent on the last quarter of 2008.
Average monthly revenue per active paying account fell around 10 percent in the first quarter of 2009 compared to the last quarter of 2008.
CEO of Gigamedia, Arthur Wang, said, “In the first quarter, our Everest software business faced greater than expected challenges from the macroeconomic downturn and the weakness of the euro – slowing our business in Europe. We have responded with a set of cost reductions and efficiencies which will protect the financial strength of the business, as well as prepare for a return to growth as a leaner, tighter organization.
“The good news: we believe we have hit bottom in this cyclical downturn and that the second half will see renewed strength in Europe. And in Asia, we are looking at our best year ever, with strong top and bottom-line growth.”
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