ENTRACTION REPORTS DECLINING SALES
3 September 2010
First half 2010 results disappoint
Internet gambling software developer Entraction Holding
AB reported weak first half results this week, with net
sales showing a 22.2 percent year-on-year decline to
$23.971 million.
The company pointed out that
excluding the performance of its CardRoom2 network and
currency fluctuations, the decline was actually only 6
percent but admitted that Q2 net sales dropped 26.6
percent year-on-year to $10.605 million.
EBITDA
for H1/2010 came in at $2.745 million, a decline of 40.1
percent over the same six-month period in 2009, while
operating profit amounted to $1.853 million, a drop of
some 49.8 percent year-on-year.
The firm revealed
that its profits after tax for the first half of 2010
were $1.947 million, diving from last year's $6.533
million, while cash flow from operations before changes
in working capital amounted to $2.529 million, down from
2009's $4.221 million.
"The gaming sector finds
itself in a challenging period and it is important that
we maintain good profitability if we are to develop
successfully," said Peter Astrom, Chief Executive
Officer for Entraction.
"With this in mind, we
are initiating a cost programme and prioritising areas
with fast revenue streams and effects on our poker
liquidity. The turbulence and consolidation we are
seeing in the gaming sector place us, as an independent
supplier and owner of one of the world's largest poker
networks, in a unique position as poker operators now
look round for alternatives.
"The second quarter
is traditionally a weak season and this year our income
has also been negatively affected by the 2010 FIFA World
Cup. Our royalty income from poker is increasing
steadily and we see continuing positive development for
our business model as a supplier of technology for
poker. We are maintaining good liquidity in our poker
network and see many opportunities to achieve growth in
the number of players.
"Our second quarter sales
and profits were lower than in the same quarter for the
previous year. In response, we are taking immediate
action to break the trend and return to good
profitability. As part of an action programme, we may be
moving certain functions to our subsidiary in Estonia
and also reviewing staffing in general.
The cost
savings are expected to have an impact of $2.029 million
on earnings on an annual basis and a positive effect of
$3.382 million on cashflow. The associated cost will be
approximately $676,351 and it is our intention to
implement the measures during the third quarter in order
to obtain the full effects in the fourth quarter.
"Several markets in Europe have stated that they
will be regulating their gaming markets and, so far,
this has actually come into force in Italy and France.
Last year, we announced our intention to establish
Entraction in Italy when the Italian authorities begin
to allow poker cash games and casino. This was scheduled
for the beginning of this year but, sadly, has been
postponed on several occasions by the Italian
authorities."
Online Casino News Courtesy of
Infopowa
More news here.
Top of page |
Home |
News |
Forum |
Webcast |
Vortran |
Accredited Casinos |
Evil Ones |
Pitch a Bitch |
Online Gambling Resources |
Poker
|
