The online casino gambling industry experienced a lot of consolidation measures over the past year as a result of the tough economy coupled with the fact that extreme growth in niche gaming sites over the past several years has now led to a period of natural consolidation as bigger companies buy up smaller sites that have grown into valuable assets. As a result of this stage in the industry’s process, however, Parlay Entertainment reported a rather poor financial report for the full year of 2009. The report showed that consolidated revenues have dropped substantially and costs were much higher throughout the year as the company developed a new infrastructure for the online casino bingo industry designed at launching new internet bingo platforms in North America and Alderney.
The fourth quarter expenses dropped Cdn $400,000 over the previous year. Q4 2008 came in at Cdn $1.2 million while the same period of 2009 reported consolidated revenues of just Cdn $800,000. On the positive side though, the online casino bingo group received a very beneficial tax credit based on tax recovery of Cdn $400,000, meaning that net losses came in right around the same as Q4 2008, 400,000. Full year revenues for the online casino bingo group held similar trends although the losses were a bit more severe. Parlay reported that 2009 full year consolidated revenues came in at Cdn $3.4 million while 2008’s full fiscal year results were a much more substantial Cdn $8.5 million.
Parlay Games Services was launched over the past year and this marks the
company’s attempt to more strongly enter the international gaming market.
Although PGS did not bring in much revenue over 2009, the product has been
prepped and Parlay anticipates a lot more business and income generation
throughout 2010 and notes that many licenses and new partnerships are already in the works.