GigaMedia Beats Wall Street Projections
Published: Tuesday, March 11, 2008 Online-Casinos.com
GIGA BEATS WALL STREET PROJECTIONS
Poker business a major contributor
Taiwan-based online gaming software firm GigaMedia Ltd posted fourth-quarter results that beat Wall Street expectations this week, driven by continued growth in its online poker software business in continental Europe and Internet games business in Asia.
Revenue in the core gaming software segment rose 73 percent to $34.2 million from the year-ago quarter. The company's poker software business, which rose 107 percent from the previous year, contributed about 78 percent of the gaming software segment's revenue in the quarter.
Earlier in the month, GigaMedia's Everest Poker offering secured a multi-year promotional agreement with the World Series of Poker, the world's largest land-based poker tournament (see previous Online-Casinos.com/InfoPowa report). However, financial details of the deal were not disclosed.
Fourth-quarter revenue in the Asian online games segment increased 92 percent to $10.1 million.
Net income for the quarter rose 8 percent to $10.7 million, compared with $9.9 million a year ago. Consolidated revenue increased 59 percent to $47.7 million.
The company expects revenue to climb sharply in 2008 in its Asian online games business boosted by new games launches. The company also forecast continued strong revenue growth in its gaming software business in 2008.
GigaMedia also disclosed it has retained financial advisors to assist with the disposal of its broadband Internet service provider business unit and remains in discussions with potential buyers concerning sale of the business.
