The online gaming provider\’s first quarter was highlighted by the completion on March 10 of the Scheme of Arrangement involving Liberty Media Corporation. As a result of the completion of the transaction, Liberty now owns 51% of FUN and invested $50m in the company.
Pro forma revenue for the first quarter 2006 was $7.76m, representing an increase of approximately 174% over the first quarter 2005. Pro forma net loss was $12.73m.
FUN skill revenue for the quarter on a pro forma basis was $3.36m. Most significantly in the quarter, FUN\’s subsidiary SkillJam Technologies completed the acquisitions of its largest skill-gaming competitor, WorldWinner.com, and of mobile and online multi-player game developer Octopi. The division also entered into distribution agreements with several world-renowned brands, including Lycos, TV2 Denmark, The Sun Online and subsequent to the first quarter, British Sky Broadcasting.
FUN fantasy revenue for the quarter on a pro forma basis was $4.37m. Subsequent to the end of the quarter, the company acquired Fantasy Sports, a provider of fee-based fantasy sports games, and established significant partnerships with Fanball UK, Sky Sports, Tiscali UK, Goal.com and Underground Digital Media.
“The acquisitions of both WorldWinner and Octopi during the quarter, as well as the subsequent acquisition of Fantasy Sports in the beginning of Q2, are in line with the company\’s aggressive growth strategy, and FUN intends to continue to seek out new complementary acquisitions,” said FUN in a statement.
“FUN\’s management believes that the relationship with Liberty will significantly enhance shareholder value over both the short and long term.”
On May 8, FUN Technologies announced a partnership with GSN, “the Network for Games,” to televise the first annual million dollar Worldwide Web Games championship, formerly known as the Skill Games World Championship.
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