Third Quarter Revenues Dip At WPT

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Published: Wednesday, November 07, 2007 https://www.gowanbo.cc

Television and online poker ventures responsible for decline

The head man at World Poker Tour Enterprises, Steve Lipscomb presided over the release this week of the group's Q3 results, which showed a dip in revenues from television ventures and online operations.

Lipscomb remained bullish, however, telling reporters: "The third quarter represented continued progress for WPT Enterprises. We reached exciting new milestones including the addition of an online casino offering on our online gaming site, WorldPokerTour.com, and kicked off the inaugural season of the WPT China National Traktor Poker Tour.

"Just a few weeks ago, we strengthened our management team with the hiring of Andy Goetsch and Rohin Malhotra. As we look ahead to the remainder of 2007 and into 2008, we are well positioned and confident in our ability to successfully execute our strategic plan."

Domestic television license fee revenues were $1.4 million in the third quarter of 2007, a decrease from $3.2 million in the third quarter of 2006.

Total revenues in Q3-2007 came in at $4.4 million, $1.5 million down on the $5.9 million achieved in the same quarter in 2006. Lipscomb attributed the decline to a dip in the number of productions of World Poker Tour events delivered for broadcast this year, the removal of Professional Poker Tour episodes from the broadcast schedule and the sale of stocks in PokerTek, the automated poker table company that WPTE was invested in during 2006.

In addition, WPTE's performance in the online gaming sector proved disappointing; after posting profits of $1 million in Q3- 2006, revenues fell to $100 000 in the same time period in 2007. The company's online poker room changed platforms earlier this year and has thus far experienced problems in bringing more than 20 percent of players over to the new platform. Marketing deficiencies and US legal restraints on advertising have exacerbated the difficulties.

Lipscomb revealed that going forward the group will launch an aggressive marketing campaign in the fourth quarter to redress the situation.

Hosting and sponsorship revenues increased to approximately $1.6 million from $0.2 million in the third quarter of 2006 due primarily to PartyGaming sponsorship revenues that did not exist in the same period of 2006, and sponsorship revenues from the airing of seven Season V episodes in the third quarter of 2007.

The underlying positives on WPTE include company assets that amount to $34.9 million overall, with no debt. For the fourth quarter of 2007, revenues are expected to be in the range of $4.0– $4.5 million.