Gigamedia announced big profits
One of the emerging leaders in the online gaming space, GigaMedia is the company behind Everest Poker and Fun Town. They have worked hard over the last two years to expand the Everest Poker brand by promoting a number of tournaments and freerolls, as well as becoming the table sponsor for all World Series of Poker events. The moves have clearly paid off according to their recent financial results.
GigaMedia Limited experienced significant growth in their profits for the third quarter, posting a 24 percent gain to $12 million in net revenue for the 90 day period. With the global recession looming and major US companies and banks needing bailouts, it’s clear that the online poker market continues to grow. Seemingly defying gravity, as other companies struggle to post any sort of profit, GigaMedia stands out for such a solid increase relative to other companies of the same size.
“The financial turmoil has created many concerns, many fears,” according to GigaMedia CEO Arthur Wang. “Nevertheless, the fact is we continue to run a high-growth business generating high levels of free cash flow and look to an even better 2009 supported by a strong balance sheet and cash position with no net debt.”
The question remains as to whether they can continue to post strong results as we head into the holiday season. If any recent trends are indicators though (record number of online cash game players are being reported at PokerStars and Full Tilt Poker), GigaMedia can look forward to similar promising results by year’s end.