Poker tournament owner posts loss, shares fall

Tuesday, Aug. 23, 2005 | 10:32 a.m.

WPT Enterprises Inc. posted a loss of $426,000 in the second quarter compared with a profit of $887,000 in the year-ago quarter on higher production costs and non-cash compensation expenses related to consultant stock options.

The Los Angeles-based company posted a loss of 2 cents per share compared with a gain of 6 cents per share a year ago. Analysts expected the company to earn 1 cent per share in the second quarter.

Revenue grew 40 percent to $6.6 million.

Revenue from domestic television licensing deals was $3.6 million in the second quarter, down from $3.7 million a year ago, because of fewer Season 3 episodes of the World Poker Tour tournament versus a year ago. International television licensing revenue increased to $600,000 in the second quarter from $100,000 a year ago. Product licensing revenue was $1.1 million compared with $100,000 a year ago.

WPT predicted revenue of $1.5 million to $2 million in the third quarter, reflecting a reduction in World Poker Tour episodes from six in the third quarter of 2004 to one in the third quarter of 2005.

WPT shares fell more than 10 percent in after-hours trading Monday and fell another 4 percent in midmorning trading today to $12.85 per share.