Parlay Entertainment report $1.4 million loss

With the end of the financial year it’s interesting to read the reports from various companies, though many do make for depressing reading. Parlay Entertainment are a market leader in online gaming software but they are not immune to the difficulties facing the industry as recent figures show. In 2008 they were pleased to report a net income of $0.5 million, whereas for 2009 they have reported a net loss of $1.4 million.

Scott White, Parlay’s Chief Executive Officer said; “Given the significant consolidation in the online bingo sector, and the fact that some of our customers were part of that consolidation, timing was such that our business model could be expanded allowing us to move into the business of operating gaming platforms. Throughout 2009 we invested significant financial and human capital resources in the development of our Alderney and North American gaming platforms, which operate under the brand Parlay Games Services. Although these platforms are accelerating in terms of growth today, we generated very little return from this significant investment in 2009, resulting in a substantial loss and cash burn.”

“With 2009 as our reformulation year,” concluded Mr. White “we are pleased to report that we have in excess of 40 networked partner sites, which are either launched or launching within PGS. We have numerous prospective partner arrangements in various stages of development. With the market changing again because of additional consolidation, we are now in a unique position to offer services to various customers who are searching for new solutions in the bingo vertical. With a revised cost structure and a robust and envied technology platform, it will be our intention to supplement our traditional software licensing model throughout 2010 with the growth of PGS throughout the world. As we have outlined previously, our offering will be flexible and unique, fostering customer access into multiple software technologies offering multiple software vendors, both gaming and non-gaming products and multiple languages and currencies”

So, the loss for 2009 has been attributed to investing heavily in the future. This is in common with many companies, and analysing the ones who have reported better figures it seems that their statistics owe more to acquisitions than they do to growth. This year could be a pivotal one for many companies – it will be interesting to see who remains at this time next year.

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