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Entraction Gambling Software Sales Decline

First half 2010 results disappoint

Internet gambling software developer Entraction Holding AB reported weak first half results this week, with net sales showing a 22.2 percent year-on-year decline to $23.971 million.

The company pointed out that excluding the performance of its CardRoom2 network and currency fluctuations, the decline was actually only 6 percent but admitted that Q2 net sales dropped 26.6 percent year-on-year to $10.605 million.

EBITDA for H1/2010 came in at $2.745 million, a decline of 40.1 percent over the same six-month period in 2009, while operating profit amounted to $1.853 million, a drop of some 49.8 percent year-on-year.

The firm revealed that its profits after tax for the first half of 2010 were $1.947 million, diving from last year’s $6.533 million, while cash flow from operations before changes in working capital amounted to $2.529 million, down from 2009’s $4.221 million.

“The gaming sector finds itself in a challenging period and it is important that we maintain good profitability if we are to develop successfully,” said Peter Astrom, Chief Executive Officer for Entraction.

“With this in mind, we are initiating a cost programme and prioritising areas with fast revenue streams and effects on our poker liquidity. The turbulence and consolidation we are seeing in the gaming sector place us, as an independent supplier and owner of one of the world's largest poker networks, in a unique position as poker operators now look round for alternatives.

“The second quarter is traditionally a weak season and this year our income has also been negatively affected by the 2010 FIFA World Cup. Our royalty income from poker is increasing steadily and we see continuing positive development for our business model as a supplier of technology for poker. We are maintaining good liquidity in our poker network and see many opportunities to achieve growth in the number of players.

“Our second quarter sales and profits were lower than in the same quarter for the previous year. In response, we are taking immediate action to break the trend and return to good profitability. As part of an action programme, we may be moving certain functions to our subsidiary in Estonia and also reviewing staffing in general.

The cost savings are expected to have an impact of $2.029 million on earnings on an annual basis and a positive effect of $3.382 million on cashflow. The associated cost will be approximately $676,351 and it is our intention to implement the measures during the third quarter in order to obtain the full effects in the fourth quarter.

“Several markets in Europe have stated that they will be regulating their gaming markets and, so far, this has actually come into force in Italy and France. Last year, we announced our intention to establish Entraction in Italy when the Italian authorities begin to allow poker cash games and casino. This was scheduled for the beginning of this year but, sadly, has been postponed on several occasions by the Italian authorities."



Gambling News :

New Racing UK free-to-watch show - Wake up to Luck on Sunday – join Nick Luck and guests for new Racing UK free-to-watch show. BHA Chief Executive Nick Rust to appear on first broadcast this Sunday

MLB Odds: Stroman Gets the Nod Against Royals - The Toronto Blue Jays (70-80, –20.18 betting units) begin their final home stand of the 2017 campaign this Tuesday when they welcome the Kansas City Royals (73-76, +2.56 units) to Rogers Centre. Sportsnet has the coverage at 7:07 p.m. Eastern.

Microgaming in bingo software deal with Marathonbet - Marathonbet’s loyal customers will now be able to enjoy an extensive Bingo offering – marking another big expansion of its online gaming collection.

Microgaming QuickFire enters Coloumbia - Wplay signs for Quickfire; strategic deal sees Quickfire enter Colombian market. Colombian-licensee Wplay has signed a deal for Quickfire, powered by Microgaming.

Partypoker to sponsor WSOPC Uruguay - Partypoker to sponsor WSOPC Uruguay in December. Qualify exclusively on partypoker for WSOP Uruguay Main Event. December 7th to 17th in beautiful Punta del Este.

MLB Odds: Jays Hope to Spoil Orioles’ Visit - The 2017 season is just about over for the Toronto Blue Jays (66-77, –21.19 betting units), but they can play spoiler in Tuesday’s game against the visiting Baltimore Orioles, starting at 7:07 PM ET on Sportsnet.

Money Storm Casino - Money Storm is not your typical online casino. While many focus on the quantity of games they offer their players, this one is more focused on the quality of their games.

Big Online SLot Win on Ultimate 10X Slot - At 9.20PM on August 28th, Kasey R was enjoying the new Ultimate 10X three-reel slot at Miami Club. The game has a random 'must win' progressive jackpot that is guaranteed to pay by the time it reaches $25,000

MPN Greatest Poker Player in the Universe - The MPN announces the third annual Universal Championship of Poker (UCOP III), boasting €750,000 guaranteed across 59 tournament events this September

PartyPoker Exits Australia - From 31st August 2017 partypoker players will no longer be able to play from Australia. Players’ deposited funds are safe and available for withdrawal.

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