The online gambling group released a pre-close trading update reaffirming its $37 million pretax profit forecast for 2006 from all gaming platforms excluding Empire Poker.
The forecast accompanied figures on the group\’s fourth quarter, which showed revenue for $22.5m, up from $22.0m a year earlier, but down from $31.4m in the third quarter.
In particular, casino revenues were $11.2m, up from $6m a year earlier and $8.4m in the third quarter. While poker revenues fell to $11.3m from $16m a year earlier and $23m in the third quarter.
Net gaming revenues across all gaming platforms excluding Empire Poker were $12.4 million, an increase of 41 per cent over the third quarter of 2005.
Empire Online said in the statement that during the fourth quarter it increased the marketing of recently acquired platforms Club Dice and Noble Poker, which resulted in a rapidly accelerating rate of growth in new player signups.
The number of new real money players across all gaming platforms excluding Empire Poker rose by 32,419, an increase of 23% over the third quarter of 2005. While the number of new real money players across all gaming platforms increased by 49,788, a decline of 6% on the third quarter of 2005. Non-US players accounted for over 44% of all new real money signups.
The company was pleased with the level of new player signups as it came in a quarter when Empire Poker\’s rate of new player signups and active player base was adversely impacted by PartyGaming separating its own skin from the system shared by Empire Poker and by the departure of Coral Eurobet from the shared tables.
Cost per acquisition of new real money players was maintained at the lower end of the normal range at $225, compared with $236 in the previous quarter.
Empire Online estimated an operating profit before exceptionals for the quarter of about $8.5m, down from $12.8m a year earlier and $16.1m in the third quarter. The company noted that during the fourth quarter, it spent $2.5 million on player bonuses at Empire Poker to help stabilize the system.
“I am delighted in the performance of our new platforms, which demonstrate the strength of our marketing skills and builds on strategic acquisitions we made in Q3 2005. It is too early to tell how full year results at Empire Poker will turn out, but the company has built a solid, fast growing business, that will deliver strong and sustainable growth in the future,” said Noam Lanir, Empire Online Chief Executive.
Since the beginning of the new financial year, the company has seen strong trading across all its platforms and in particular trading at Noble Poker has been especially strong with revenue increasing by 50%, following the initial integration of casino games with the poker platform. In the first three weeks of 2006, new real money player signups have been growing at around 500 per day.
Shares in Empire jumped 15 per cent to 99¼p. Still considerably down from the June float price of 175p.
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