World Poker Tour Enterprises (WPTE) Incorporated has released its financial results for 2008 showing a decline in revenues for both the fourth quarter and the full-year.
The California firm reported that revenues for the fourth quarter of last year fell to $2.6 million compared to $5.1 million in 2007 while those for the full-year plummeted 28.6 percent to $15.48 million.
WPTE stated that this drop was due primarily to a change in the release pattern of its World Poker Tour television series alongside lower international television and product licensing revenues. Those from international television licenses decreased $468,000 due to fewer territories accepting license arrangements while revenues from product licensing fell $432,000 as a result of lower royalties from two licensees.
WPTE revealed that the cost of revenues decreased to $798,000 in the fourth quarter of 2008 compared to $1.63 million for the same period in 2007 due to a change in the release pattern of the sixth and seventh season its television series.
The gross profit margins for the World Poker Tour television series were 65 percent in both periods while WPTE revealed that it had no debt and total cash and investments in securities of $17.0 million at the end of December, which included $3.3 million of auction rate securities.
Looking ahead, WPTE stated that it was searching for a strategic partner to invest in its Chinese business because it does not have the cash to support the growth in this business. It revealed that the future of this division is dependent on the outcome of its quest.
The Los Angeles-based company revealed that it expects revenues for the first quarter of 2009 to be around four million dollars and that it expects to incur restructuring costs to reduce overhead.