WPT Enterprises posts Q4 and full year fiscal 2005 results

WPT Enterprises, Inc. (WPTE), owner of the World Poker Tour (WPT), announced financial results for the fourth quarter (Q4) and year ended January 1, 2006, earlier this week.

Revenues for Q4 2005 were $5.2 million, compared to $5.7 million in the same period in 2004, an 8.6% decline, which the firm blames on the delivery of four episodes of WPT Season 4 versus the delivery of eight episodes of Season 3 in the same period in 2004. WPTE's net loss for the quarter was $1.4 million, compared to a net loss of $0.5 million in the 2004 period.

According to Steve Lipscomb, president and CEO of WPTE, the lost revenue in no way signals a lack of growth for the firm. "The fourth quarter represented continued progress for the World Poker Tour brand."

"We delivered four episodes of Season 4 of our highly successful television show and further expanded the international distribution of our show, as we are now licensed to broadcast in more than 130 countries."

"Additionally, we recently announced many exciting new developments, including ... an agreement with the Travel Channel for distribution of the Professional Poker Tour (PPT) and several new consumer product licensees. As we look ahead to 2006, we are confident in our ability to continue to successfully execute our strategic plan."

For the year ended January 1, 2006, revenues were $18.1 million, compared to $17.6 million in the year ended January 2, 2005, an increase of 2.9%. The increase was a result of significantly higher international and product licensing revenues, offset in part by the delivery of only eighteen episodes of the WPT versus thirty-two episodes in the prior fiscal year.

The firm's net loss for the year ended January 1, 2006, was $5 million compared to net earnings of $0.8 million in the prior fiscal year. The primary reasons for the decrease in earnings year-over-year include additional expenses of $3.6 million associated with the production of the PPT, among other necessary business development and growth expenses.

Domestic television license revenues were $1.7 million in Q4 2005, a decrease from $3.2 million in Q4 2004. The decline was explained as a result of the delivery of fewer episodes during the quarter compared to the prior year period. International television licensing revenues increased to $1.4 million in Q4 2005 from $0.6 million in Q4 2004. The increase was due to having a greater number of distribution agreements in place during fiscal 2005 than in the prior year.

In the meantime, product licensing revenues were $1.3 million in Q4 2005, down $0.4 million from Q4 2004. For the year, however, product licensing revenues were up by $2.5 million, from $1.9 million in 2004 to $4.4 million in 2005, an increase of 127%.

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