Third-quarter 2007 financial results for World Poker Tour Enterprises were $4.4 million, compared to $5.9 million in the same period of 2006. The company said the decrease was mainly a result of the delivery of fewer domestic television episodes delivered in the 2007 period.
The company recorded a net loss for the quarter of $2.2 million, or $0.11 per share, compared to net earnings of $2.7 million, or $0.13 per share, in the comparative 2006 period.
President and CEO of WPT Enterprises Steve Lipscomb said of the results, "The third quarter represented continued progress for WPT Enterprise. 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 fell to $1.4 million in the third quarter of 2007, from $3.2 million in the third quarter of 2006. The decline was primarily the result of not delivering any episodes of the Professional Poker Tour (PPT) television series in the 2007 period, versus the delivery of nine episodes of the PPT in the third quarter of 2006.
This decrease in revenue was partially offset by the delivery of three episodes of season five of the WPT television series in the third quarter of 2007 versus the delivery of one episode of season five of the WPT in the 2006 period.
On September 30, 2007, the company had no debt and total cash, cash equivalents, and investments in marketable securities of approximately $34.9 million.
For the fourth quarter of 2007, revenues are expected to be in the range of $4.0 million-$4.5 million. Additionally, the Company expects:
- To deliver five episodes of season six of the WPT television series to GSN in the fourth quarter of 2007.
- Lower gross margins for domestic television as a result of the terms of the season six agreement.
- To recognize PartyGaming sponsorship revenues as episodes are aired during the fourth quarter of 2007.
- Moderate progress in online gaming in the fourth quarter. In the first quarter of 2008, the company will launch an aggressive marketing and promotions campaign.
