Compared with the same period in 2005, the developer of online poker software and owner of the Excapsa Gaming Network reported a 40% increase in net revenue up to $54.2m and a 27% increase in net income up to $15.1m.
97% of revenues in the Excapsa Gaming Network continue to be generated from the largest licensee, UltimateBet, but the focus on diversifying player acquisitions has resulted in 25% of new revenue generators for the period coming from outside of the United States and 20% of the Network\’s revenue for the same period generated from non-US customers.
During the first half of 2006, Excapsa completed a major platform upgrade from MySQL to Oracle, successfully launched a single player blackjack product and a mobile poker solution, while it remains on schedule to third quarter delivery of a proprietary version of tournament blackjack.
“The first half of 2006 was a tremendous period for Excapsa as we made progress on the execution of our strategy, including upgrading our network platform and working with our licensees to increase real money customers by 66% over the prior year. We are currently on track to meet our strategic objectives for 2006,” commented Chief Executive Jim Ryan.
“We continue to take advantage of the opportunities in our industry through product development as evidenced with our successful launch of single player blackjack and a mobile poker solution during the first half of 2006. Geographical expansion also remains a high priority for the Excapsa Gaming Network. The appointment of a new marketing Managing Director headquartered in the UK for licensee brand UltimateBet.com brings stronger focus to international player growth, particularly in the UK, European and Australian markets,” he added.
Despite the firm\’s current share price has been adversely impacted by the concerns in the US about a possible ban of online gambling, Excapsa has a debt free balance sheet with a cash position of $46.5million and is now looking at the potential strategic acquisition of an online casino software developer, which would allow the company to move away from being a pure poker network.
UPDATE: CEO Jim Ryan confirmed in an interview with Reuters News that Excapsa was “actively pursuing the acquisition of a casino software developer” to extend its present offering.
The Head of Excapsa also told the Financial Times that the regulatory crisis facing the industry in the US is just a “different shade of grey.”
“We have seen this before. We do not see ourselves being subjected to the same level of scrutiny [as BetonSports],” said Ryan.
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