WPT profits up

Despite online meltdown, one of the biggest US poker brands, known around the world, World Poker Tour Enterprises has announced third quarter profits to shareholders and financial institutions.

The brand’s focus on TV programming and merchandising, coupled with the successful launch of the Professional Poker Tour has meant the WPT continues to operate well into the black.

The key components of their success are the completion and delivery of nine episodes of Season I of the PPT television series, one episode of Season V of the WPT television series and continued growth in the international and corporate sponsorship businesses.

Despite record playing numbers for their competitors during the 2006 World Series of Poker the numbers are still pretty big for the WPT, and if anything their business model looks like it could happily absorb the online poker ban in the US, given the fact they do not accept wagers from US based players.

Revenues for the third quarter of 2006 were $5.9 million, compared to $2.1 million in the same period in 2005, a 176% increase.

The Company reported net earnings for the quarter of $2.7 million, or $0.12 per fully-diluted share, compared to a net loss of $1.6 million, or $0.08 per share (without dilution), in the 2005 period.

Net earnings in the quarter include a $4.5 million realized gain on the sale of the Company’s remaining 450,000 shares of PokerTek, Inc’s common stock.

Excluding this gain, pre-tax earnings would have been approximately $13,000 for the quarter.

"We are pleased with the progress we are making in maintaining our position in the global poker market, particularly in our core television business where we delivered a combined ten World Poker Tour and Professional Poker Tour episodes this quarter, and thirty six episodes year-to-date," said Steve Lipscomb, founder and CEO of WPT Enterprises.

"The poker industry has changed dramatically since our first television show aired in 2003; and while the last couple of years have not been without bumps in the road, we have managed through them and the WPT brand is now stronger than ever. We have been financially responsible and as a result, have a strong balance sheet, and with the anticipated re-launch of our internet gaming site expected in 2007, we are excited about our future."

Mr. Lipscomb continued, "Many are aware that the U.S. Congress recently passed the Unlawful Internet Gambling Enforcement Act of 2006, restricting payment processing with regards to unlawful online gaming in the United States. Since we have had a policy from inception of not accepting wagers from U.S. players, we believe the Act will not require a change in our day-to-day business activities."