The provider of marketing services to the online gaming industry and owner of Club Dice and Noble Poker announced earnings before tax and exceptional items of $15.7m on net gaming revenues for the first half 2006 of $38.2m (casino $30.2m, poker $8.0m).
The increase in casino revenues arising from the Playtech licensees acquired in the second half of 2005 offset the reduction in poker revenues due to the termination of Empire Poker following the settlement agreement with PartyGaming in February 2006.
Empire Online continued its geographic diversification with 55% of new real money players now coming from outside of the USA, compared to 39% a year earlier.
Although the company declared a $5 million dividend, it warned investors that the normal slow down in trading activity seen in Q2 has been more pronounced this year when compared to previous years and that new player sign-ups were running at a disappointing 250 a day.
“Whilst the Board expects the outcome for the current year to be broadly in line with market expectations, if there is no improvement in this rate of sign ups, earnings growth for 2007 will be challenging,” the company said in a statement.
Empire also announced that in light of the increased regulatory uncertainty in the US, the Board will review carefully all uses for the company’s surplus capital ($260m) in order to maximize shareholder value.
UPDATE: Founder Noam Lanir revealed that Empire is preparing to hive off the company surplus capital in a separate investment vehicle that would target investments in industries less risky than online gambling.
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