Online Casino News
GigaMedia Posts Strong Q3 Results, Share Price Recovers
2007 November 15, Jonny Vincent
GigaMedia's share value crashed this week in the lead up their Q3 trading update on the expectation the company was overvalued and that the upcoming trading update could bring bad news for shareholders. However, yesterday's trading update showed the company has continued its stellar march in 2007 with another strong quarter.
GigaMedia owns a number of online casinos as well as a popular online poker room (Everest Poker). Shares in GigaMedia (NASDAQ: GIGM) have been traded furiously this year with the stock reaching $25.42 (a seven-year high) earlier this month.
The stock dropped to $16.41 earlier this week on the expectation the upcoming trading update would not be as good as expected, yet the company reported revenues continued to rise (up 75% to $43 million compared with Q3 2006) on the back of continued growth from Everest Poker as well as the company's online games business in Asia.
Everest Poker revenues climbed 163% to $22 million, boosted by a 6% increase in the number of active depositing players to 163,000. Casino revenues (list of GigaMedia-owned online casinos below) also continued to improve, up 14% to $7.3 million following the launch of new games as well as improved cross-selling to Everest poker players.
GigaMedia's Asian online games platforms FunTown and T2CN came to the party with revenue rising 122% to $10 million. GigaMedia's presence in Asia makes it a leader in the push to bring online gambling to the untapped Asian market.
GigaMedia CEO Arthur Wang said the company should continue to perform well:
"Over the next few quarters, we plan to add several top-tier games to our platforms and expand our strategic partnerships - key steps to driving even stronger growth. We continue to execute well and are confident that we are building a dominant online entertainment platform."
GigaMedia (NASDAQ: GIGM) shares are currently trading at $20.75 (at time of writing).
GigaMedia online casinos include:
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