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Global Entertainment Reports Q1 Revenue Growth20 May 2002MIAMI, Florida --(Press Release)--Global Entertainment Holdings/Equities, Inc. (OTCBB:GAMM) Global Entertainment Holdings/Equities Inc., a holding company in the online gaming sector, today announced first quarter results with revenue growth of 30% driven by its online gaming software subsidiary, Interactive Gaming & Wagering (IGW), relative to the same quarter last year. Revenues grew to $1,432,235 for the quarter ended March 31, 2002 as compared to $1,102,253 for the three months ended March 31, 2001. 78% of revenue is attributable to software royalties which increased 43% year-on-year. Global Entertainment CEO Bryan Abboud stated, "This increase in revenue contributed to positive cash flow for the quarter, which enabled us to re-invest in technology that will allow our clients to penetrate new segments in the global online gaming marketplace. Much of our revenue growth is attributable to software enhancements that result in increased client productivity, revenue and profitability." As expected with investment in technology, operating expenses increased for the three months ended March 31, 2002, to $1,029,592 from $867,536 for the quarter ended March 31, 2001. The software development team was expanded to meet greater programming needs, and Global Entertainment's depreciation expense increased 17% from $251,763 to $293,560 due to hardware acquisition. Prevail, the gaming portal subsidiary, is still under recovery in a tough market for advertising. For the quarter March 31, 2002, Prevail generated revenues of $9,700, as compared to $80,665 for the quarter ended March 31, 2001. Increased expense due to software technology investment and reduced revenue from Prevail resulted in a net loss of $15,480 for the quarter ended March 31, 2002 as compared to Global Entertainment's net income of $31,888 for the quarter ended March 31, 2001. Global Entertainment's cash position significantly improved during the quarter ended March 31, 2002, as a result of the fourth quarter seasonality of fees generated by licensee sportsbook customers, a reduction in open account receivables collection period, and the continued pay down of short term notes receivable. Net cash generated from operating activities for the three months ended March 31, 2002 was $798,845, as compared to $189,662 for the three months ended March 31, 2001. |