09-02-2006 FUN Technologies announced fourth quarter and full year results

The online gaming provider moved into black in the last three months of 2005, showing an operating profit of £1.73m from revenues of £5.56m.

FUN's revenue for the full year rose to £13.7m from £1m in 2004, of which £9.4m were attributable to acquisitions made in 2005. However, the company still made a overall loss of £5.04m.

"I am pleased to report another strong quarter, capping off a very successful year for the company. We have exceeded our goals of rapid organic growth, strategic acquisitions and significant new distribution partnerships. Most importantly, we are confident that this year's accomplishments have laid the foundation for creating additional value in 2006 and beyond. We look forward to the future with great excitement," commented Lorne Abony, Chief Executive of FUN.

FUN added in a statement that is continuing to explore acquisition and consolidation opportunities in the casual games space and related businesses.

UPDATE: As reported by eGaming Review, RealNetworks, the developer of downloadable casual games and music and media software, has acquired Zylom Media Group, the Netherlands-based developer of casual and skill games, for $21m.

In 2005, Zylom, which distributes its products through its website and through partnership agreements with companies such as Wanadoo, AOL and Yahoo, reported revenues of $8m with a net profit of $750,000.

"By teaming up with Real, we will be the strongest casual games company in Europe. Our combined strengths will allow us to deliver the very best games and services to our portal and ISP partners throughout the European market," said Rutger Peters, Chief Executive of Zylom.