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PARLAY REPORTS LOSSES
Canadian bingo specialist active but performance is downThe online bingo software supplier Parlay Entertainment has announced a full-year net loss of $76 608 for 2007, down from a net income of $1 238 846 in the previous year. Total revenues for the period decreased by 11 percent to $8 032 100 while EBITDA fell to $86 378 from $2 192 804 in 2006.
The company has recently been in the industry headlines with several significant commercial deals, and three unsuccessful acquisition bids.
Results for Q4 of fiscal 2007 include:
* Total revenue at $2 041 351, down 6 percent from Q4 2006.
* Royalty revenue at $1 883 784, down 6 percent from Q4 2006.
* Net loss at $372 850, down from net income of $32 591 in Q4 2006.
* EBITDA(1) decreased to -$(497 432), from $110 459 in Q4 2006 and EBITDA(1) margin decreased to -(24) percent from 5 percent in Q4 2006.
Results for the full year fiscal 2007 include:
* Total revenue at $8 032 109, down 11 percent from 2006.
* Royalty revenue at $7 322 353, down 6 percent from 2006.
* Net loss of $76 608, down from net income of $1 238 846 in 2006.
* EBITDA(1) decreased to $86 378, from $2 192 804 in 2006 and EBITDA(1) margin decreased to 1 percent from 24 percent in 2006.
CEO Scott White said: “In 2007, Parlay was faced with a number of challenges, which most importantly required that the Company adjust to a changing U.S. regulatory environment. While these changes had a negative impact on revenue and earnings, Parlay made significant investments in technology, sales and marketing. These investments have allowed for the completion of several new U.K. and European-facing licensing arrangements and, as these arrangements transition into active businesses throughout 2008, we anticipate that they will make a meaningful contribution to royalty revenue.
“As multinational and brand-name companies continue to express interest in Internet bingo” continued White, “we look forward to announcing new licensing arrangements with our growing complement of U.K. and European focused customers and strategic partners.”
Parlay remains debt free and boasts a positive if decreased cash balance as at December 31, 2007 of $1.8 million. This compares with $3.1 million as of the end of 2006.
