The online poker and casino operator provided a trading update for the second quarter of 2006, showing total net gaming revenues of $18.3m (Q1 2006: $21.1m; Q2 2005: $25.3m) and a profit before tax of $7.2m (Q12006: $8.5m; Q2 2005: $12.4m).
The second quarter is traditionally the slowest quarter of the year for the online gaming industry. This year the normal seasonality has been more pronounced due to the contemporaneity of the soccer World Cup, which had an additional dampening effect on new player sign ups and player activity in poker and casino gaming.
New real money players across all gaming platforms totaled 29,928 for Q2 2006 (Q1 2006: 36,242; Q2 2005: 9,838). For the first time, non-US players accounted for over 60% of all new real money signups (Q1 2006: 50%).
Empire Online, with cash resources of over $260m, remains well placed to exploit value-enhancing opportunities as they arise. The company has progressed several opportunities, but completion of transactions has been hindered by unreasonably high valuations expected by vendors and the uncertainty surrounding the US regulatory environment.
Commenting on today\’s trading update, Noam Lanir, CEO, said: “I am pleased to report further progress, against the normal Q2 headwind, in re-building the Company. The Company\’s geographic diversification and financial strength are key features which will ensure future success. I expect this progress to continue through the second half of 2006.”
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