The skill games provider reported a third quarter revenue of $13.2 million, an increase of 30.1% over the second quarter of 2006. Despite the increase in revenues, FUN made a loss of over $9m during the period.
Revenue from FUN Games totaled $6.7 million in the period as compared to $5.8 million in the second quarter of 2006. Revenue from FUN Sports was $6.4 million as compared to $4.3 million in the previous quarter. For the nine months ended 30 September 2006, FUN Technologies had revenue of $31.1m, a rise of 107% on the same period last year, and made losses of $19.4m.
The company, which recently appointed Peter Blacklow to the newly created post of President of the Fun Games division, said it will continue to focus on integrating its platforms and services offerings as well as on developing new distribution channels and pursuing complementary acquisitions which are in-line with its aggressive growth strategy.
A recent research study carried out by Dublin-based Research and Markets estimated the current market size for casual gaming and gambling (skill gaming and online bingo) to be about $500 million with more than 8 million regular players playing for cash. By 2010 the casual gaming and gambling market is expected to grow to $1 billion, with Europe expected to play a major role for future growth.
Elsewhere, Betware, a gaming solutions provider for the online betting industry, acquired Certus Games, a Danish developer of skill games for the web and mobile phones. Certus provides its suite of over 40 skill/casual games to several television and mobile operators in Scandinavia. In a separate deal, Betware has developed and delivered a suite of bingo games to Danske Spil, the Danish state lottery.
Bingo.com announced a 7% decrease in third quarter revenue compared to the second quarter of 2006 due to a combination of a slow down in the summer months and gaming software problems. “It was a challenging quarter for Bingo.com,” said CEO Tarrnie Williams. “We were unable to maintain our strong revenue growth due to unforeseen and persistent software problems combined with slower summer demand. Unfortunately, once the software problems had been corrected, it was too late in the quarter to attain the revenue growth previously enjoyed. As a result, given our pre-planned marketing expenses, we were regrettably unable to maintain profitability. Just as our cash business was starting to improve again, the quarter ended with the unfortunate passing of the United States Unlawful Internet Gambling Enforcement Act, thereby creating unplanned challenges for the Company and causing us to refocus on emerging markets.”
“On the positive side, the Company, in the quarter, completed its market studies and initial preparations for Bingo.com\’s entry into the United Kingdom, thereby significantly shortening the time required to enter this growing market. Our planning, combined with the rapid disposition of our United States cash business, puts us in a strong position to return to profitability,” added Williams.
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