Play Online Poker
NEW YORK — GigaMedia Ltd., a Taiwanese online gaming company, said Wednesday its third-quarter profit climbed 49 percent, driven by growth in its core poker software and Asian online game businesses.
Net income increased to $9.7 million, or 16 cents per share, compared with $6.5 million, or 11 cents per share, in the prior-year period. Excluding a stock-based compensation charge, earnings grew to $10.2 million, or 17 cents per share, from $6.6 million, or 11 cents per share.
Analysts surveyed by Thomson Financial expected a profit of 15 cents per share.
Operating revenue soared 76 percent to $43 million from $24.4 million on continued growth in its European poker software business and contributions from its Asian online games business.
The company said it expects its gaming software business to continue to perform well in the fourth quarter on increased tournament and marketing activities and a seasonal rise in online gaming, partially offset by increased competition. It also anticipates revenue growth in its Asian online games business due to new games set to be released and marketing investments in the third quarter.
A continued decline in broadband ISP revenue is expected for the fourth quarter. GigaMedia said it may sell the unit and is in talks with some buyers.
Shares of GigaMedia dropped $1.45, or 6.7 percent, to $19.65 in morning trading.
Source: The Associated Press