WPT stock falls to new low, worth less than cash balance
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The news simply doesn’t get any better on the financial side for the World Poker Tour.
WPT stock closed at $1.26 on Thursday, giving the company a value of $25.82 million. The WPT has assets and cash in hand totaling $31 million.
According to poker-king.com, WPT stock hit an all-time high of $29.50 in 2005, the high-water mark before a serious downturn:
They are getting much less per episode in their new deal with the Game Show Network compared to their previous deal with the Travel Network. They received 477k per episode in Season 5 - this year they are receiving $300k per episode. They posted revenues for their online gaming business of $1.2 million dollars for all of 2007, down from $3.2 million dollars in 2006. They posted a net loss of $9.6 million dollars in 2007. Revenues decreased $7.5 million dollars from 2006 to 2007.
Company executives are still painting a rosy picture with the future of worldpokertour.com and clubwpt.com as future cash revenue streams, although immediate relief from economic woes does not seem to be on the horizon.
