WGMGY HUGE NEWS
Earnings report is MASSIVE much higher then expected.
Key points
Wager volume up 85%
Rev up 39%
Operating expanses down 22%
Net profit .04 compared to loss of .01 a year ago
They made .04 in the 1st Q, and now another .04 in the 2nd Q for .08 so far in first 6 months.
And it is trading .40 right now, this stock is gonna hit $2.00 in the very near future.....
World Gaming plc reports second quarter results
LONDON, UK, Aug 5, 2004 /PRNewswire-FirstCall via COMTEX/ --
World Gaming plc (OTC BB: WGMGY), a UK-based Internet-gaming software and e-business services group of companies (the "Company"), is pleased to report financial results for the three and six months ended June 30, 2004.
Highlights
- Net profit for the quarter of $1,684,000 vs. loss of $236,000 for the
same period last year.
- System-wide wagering volume up 85% from the same quarter last year.
- Revenues in the quarter up 39% from the same period last year.
- Operating expenses in the quarter down 22% from the same period last
year.
- Multi-player poker released to major licensee in May 2004 with further
roll-out in third quarter.
- Settlement of outstanding office lease liability.
Fiscal results
Total revenues for the quarter ended June 30, 2004 were $4,148,000 compared to $2,986,000 for the same period last year. For the six months ended June 30, 2004 total revenues were $9,512,000 compared to $7,523,000 for the same period last year. This 39% increase in revenues in the quarter was driven primarily by increased licensee wagering volumes of 85% and higher net win achieved by our licensees when compared to the same period last year.
Net profit for the quarter ended June 30, 2004 was $1,684,000 or $0.04 earnings per share compared to a net loss of $236,000 or a loss of $0.01 per share for the corresponding period last year.
In February 2004, the Company closed the transaction processing division together with Customer Support. Affected licensees were successfully transferred to an industry leading solution. There are no revenues or direct costs from these divisions in the quarter to June 30, 2004.
The gross margin for the quarter was 92.9% as compared to 88.0% for the same period last year. The increase represents a more profitable revenue mix due to the closure of the transaction processing division in February 2004.
Operating expenses decreased 22% to $2,283,000 during the first quarter of 2004 compared to $2,911,000 for the same period last year. The primary contributors to this reduction were:
- Elimination of advertising and promotion expenses that were utilized
in launching the worldgaming.com gaming site during the second quarter
of 2003;
- A 32% reduction in other corporate overheads or a reduction of
$113,000, when compared to the same period last year.
The Company has stabilized the cost base over the past twelve months while maintaining its commitment to continue investing in enhanced infrastructure and product offerings for its existing licensees.
In July 2004, the Company settled an outstanding lease liability in respect of an office lease contracted in October of 2001. The outstanding liability in respect of this lease was in excess of CAD $600,000. The settlement in the amount of CAD $175,000 inclusive of fees was paid in July 2004.
Selected statement of operations information (unaudited, in thousands)
For the three months ended
June 30,
2004 2003
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