Skill Gamers' Q1 Revenues Up 174 Percent
Published: Tuesday, May 23, 2006 Online-Casinos.com
SKILL GAMERS' FIRST QUARTER REVENUES UP 174 PERCENT
FUNTech enjoys another impressive quarter, but overall loss due to expansion
dampens investor enthusiasm
First-quarter results from skill gaming provider Toronto-based FUN Technologies
show a 174 percent revenue increase from 2005, with marked success in the
FUN Fantasy and FUN Skill divisions according to company statistics
released last week.
With Quarter 1 revenues up at US$7.76 million, the group led by Lorne Abony
was celebrating an increase of around 174 percent over Q1 for 2005. Subsidiaries
FUN Fantasy revenue for the quarter was up 189 percent and FUN Skill revenue increased
154 percent from 2005 to 2006.
Despite the rise in revenues, the share price took a three quarter of a percent
knock following the publication of the results, which indicated a net overall
loss of US$2.26 million as the group continues to expand.
FUN’s recent acquisitions illustrate an increase in international focus,
after agreements were signed between Lycos, TV2 Denmark, The Sun Online and Sky.
It also acquired the assets of mobile and online multi-player game developer Octopi
LLC, as well as Fantasy Sports, which provides NASCAR-related fantasy sports racing
solutions.
The generally positive results were partially accounted for by the arrangement
made on 10 March whereby ‘Old FUN’ became a wholly owned subsidiary
of Liberty Media, following the latter’s 51percent purchase of FUN shares.
Liberty also invested US$50 million in the company.
Recently acquired FUN Technologies’ subsidiary, WorldWinner has joined
SkillJam Technologies to co-host the Worldwide Web Games (WWG). WorldWinner
was formerly one of FUN’s largest competitors.
The collaboration with SkillJam for the WWG, which was formerly known as the SkillsGames
World Championships sees FUN teaming up with partner sites such as AOL games and
Virgin Games. The prize for the final of the WWG will be US$1million.
