Bingo software supplier Parlay Entertainment posted a good set of third quarter results with year-on-year third quarter revenues up by 23% and earnings (EBITDA) of $894,666, up from $271,538 in the same period in 2007.
Profits grew thanks to new product offerings and signing new customers, as well as the strength of the US dollar, the company said.
Earnings for the first nine months of 2008 totalled $1,050,524 on revenues of $7,158,118.
Parlay provides bingo and interactive television software to the St Minver Network and to Unibet, Stan James and Irish boomakers Paddy Power. They also claim to own the patent for multi player online bingo in Canada and the United States, although their competitors in the online bingo industry would argue about how sustainable that patent is.
Chief executive officer Scott White said: “We remain committed to increasing our cash reserves through revenue growth from existing and new customers as well as from new product and service offerings and software licensing fees. We have a number of new customers who are in various stages of advancing their Internet bingo offerings and we anticipate these new customer launches to contribute to revenue commencing in Q1 2009. Our quarter just passed also included significant foreign exchange expense reflecting the remarkable strength of our reporting currency against each of sterling, the Euro and the Canadian dollar.”
“We are also beginning to see,” continued Mr. White, “the results of various restructuring initiatives which we commenced in Q2 2008 and which we have expanded. We anticipate that the full benefit of these adjustments will fully impact our cost structure in Q1 2009.”
Parlay's share price stands at 40 cents, valuing the company at just over $5 million. The company was the subject of a bid by PEIC Aquisition Corp, a vehicle led by online gambling pioneer Mark Blandford. PEIC pulled out of the bidding in March 2008 after two more parties became involved in the potential sale, only for the remaining bidders to also pull out.
In June 2008 Parlay sold all their US facing assets for $2.8 million but any future buyer would potentially risk taking on the past liability of the company accepting bets from US citizens.
Doubts also surround the company in terms of how long they are likely to hold on to the St Minver contract. St Minver was sold to American gaming giant GTech this summer and they already own their own bingo software through Boss Media. The loss of the St Minver contract, which includes brands such as Littlewoods Bingo, Virgin Bingo and Love Bingo, would be a major concern for Parlay.
