The internet poker and marketing company made the two acquisitions as it announced an 87.5 per cent rise to $25.5m in profit before taxation for the six months ended June 30. Revenues almost doubled to $49.7m.
Empire Online, whose value has risen 32 per cent since last month\’s share sale on London\’s Alternative Investment Market, is benefiting as more people started playing poker on the internet.
According to Christiansen Capital Advisors, the size of the online poker market has increased from $90m in 2002 to $1bn in 2004 and the industry is expected to grow by more than 40 per cent a year to $6.4bn by 2009.
“Empire Online has experienced a strong half-year and remains focused on rapid growth while containing costs,\’\’ said CEO Noam Lanir.
The company has agreed to buy casino and bingo operator Club Dice and poker operator Noble Poker for a total of $40m in cash.
Club Dice comprises three casino brands and one bingo brand for a total of over 70,000 active players. The acquisition includes brand and intellectual property of Noble Poker, the largest poker operator on Playtech\’s iPoker network.
“In Club Dice and Noble Poker we have bought running businesses which achieve a strategic objective of diversifying our base of technology providers,” Lanir said.
Empire Online anticipated the introduction of an online multiplayer backgammon platform, 65.com.
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