World Poker Tour Enterprises Inc. (WPTE) posted a loss of over $400,000 in the second quarter yesterday, causing shares to drop 10%. The company, which is responsible for the popular World Poker Tour (WPT) television series, experienced loses to the tune of $426,000 in the second quarter, compared to a profit of $887,000 last year.
Their loss of 2 cents per share compared to a gain of 6 cents per share last year is blamed on higher production costs and non-cash compensation expenses.
Overall, however, the company posted an increase in revenue for the second quarter of 2005 up from the same period in 2004. WPT Enterprises reported a 40% overall growth to $6.6 million, which is due to increased product licensing and international television distribution deals.
The company earned $3.6 million from domestic television licensing deals in the second quarter, compared to $3.7 million one year ago. International television licensing revenue was up $500,000, from $100,000 last year to $600,000 this year. As well, product licensing increased from $100,000 last year to $1.1 million this year.
WPT Enterprises spokespeople announced these results after the close of trading yesterday, Monday, August 22nd. After hours trading subsequently saw shares fall more than 10%, and again by 4% in today's mid-morning trading.