GIGAMEDA STILL IN TALKS ON EVEREST POKER (Update)
12 June 2009
Hits group Q1 revenue forecast of $44.4
Million, but Internet casino and poker interests
disappoint
The latest Q1 2009 results from Everest Poker's parent
group Gigamedia in Taiwan will make interesting reading
for the two major gambling groups with which it is
currently in discussions regarding a sale of its online
gambling interests.
Financial highlights
included:
* Poker and casino software revenues of
$31.7 million, in line with expectations.
*
Active depositing poker players held steady
quarter-over-quarter; new depositing players grew
slightly during the period.
* Asian online games
revenues of $12.7 million, up 33 percent
quarter-over-quarter on strong organic growth, with
FunTown and T2CN revenues up 27 percent and 43 percent,
respectively, during the period.
Operational
highlights and developments covered:
* Everest
Poker sponsorship of the Spanish Poker Tour.
*
Asian online games platform: FunTown begins open beta
testing of new MMORPG Warhammer Online in Taiwan and
Hong Kong.
* Asian online games platform T2CN
begins beta testing of Luna Online, one of Asia's most
successful MMO games; plans China launch this summer
The company posted overall first-quarter revenues of
$44.4 million and net income of $4.8 million, but the
results were nevertheless negatively impacted by global
economic conditions and continued weakness of the Euro
against the U.S. dollar.
CEO Arthur Wang revealed
that Gigamedia is in final round discussions with two
still undisclosed parties concerning a potential
strategic partnership or sale involving its poker and
casino software business, although he gave no further
details.
And he revealed that the online
gambling interests had endured a tough quarter.
"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," Wang said. "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."
Gigamedia President and COO Thomas Hui added: "We remain
confident in the strategic position of our poker and
casino software business, and are excited about the new
games we are launching in Asia this year," stated . "Our
core businesses remain healthy and well positioned to
deliver strong long-term growth."
The downturn in
the group's fortunes has been marked, mainly due to the
difficulties being experienced by the casino and poker
operations. Net income declined 60 percent compared with
Q1 2008 to $4.8 million as revenue slowed by 13 percent
to $44 million. The online casino operations performed
somewhat better than the online poker interests, with
revenues up 18 percent to $10.2 million compared to the
same period last year, thanks mainly to the benefits of
cross-selling from the poker site.
Online poker
revenues dropped 27 percent to $21.6 million compared
with Q1 2008.
Online Casino News Courtesy of
Infopowa
More news here.
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