Parlay Entertainment Inc. Maintains Profitable Operations
All amounts in United States Dollars
Parlay Entertainment Inc. (TSX VENTURE:PEI - News), the world’s leading supplier of Internet bingo solutions, today announced record results for the three-month period ended March 31, 2006.
Highlights for the first quarter of fiscal 2006 include:
- New corporate record for revenue at $2,013,218, up 13% from the prior record for Q4 2005 and up 52% from Q1 2005.
- Sixth sequential new corporate record for royalty revenue at $1,868,886, up 15% from the prior record for Q4 2005 and up 64% from Q1 2005.
- New corporate record for net income at $291,661 or $0.02 per share, fully diluted, up from $103,861 recorded in Q1 2005.
- EBITDA(1) increased to $512,572 from $236,496 in Q1 2005 and EBITDA(1) margin increased to 25% from 18% in Q1 2005.
Achievements for the first quarter include:
- Existing bingo network, St. Minver Limited, launches additional network partners with 13 in place at March 31, 2006.
- Existing bingo network, The Gaming Network Limited, adds additional network partners to their network with 10 in place at March 31, 2006.
- Release of Parlay 4, the latest version of Parlay’s award-winning online bingo product. The release includes many additions and enhancements to Parlay’s software suite, which is already the most popular Internet bingo technology in the world.
"Our financial results for Q1 2006 met our expectations and position us well to continue our growth experience through fiscal 2006, " said Scott F. White, President and CEO. "We continue to see growth from our new and existing licensees who are UK and European facing, but we are also seeing growth, and in some cases significant growth, from our customers who are US facing. We have announced a number of new license and network partner relationships over the past fiscal year, and only certain of these new arrangements have added significantly to revenue through March 31, 2006. It is our expectation that additional contributions will be made from previously announced licensees and network partners as they invest more time and resources in the advertising and promotion of their Internet bingo offerings."
"As a result of our revenue growth, we made further investments in human capital and other resources in Q1 2006, and these investments have been necessary to increase our capacity to develop and deliver software and services to our licensees and to enable us to better manage the development and delivery of software," continued Mr. White. "We will make further investments in our human capital throughout 2006 in order to support the increasing international demand for Parlay’s software and Internet bingo in general."
Parlay generates revenue from software licensing, installation fees and e-digital and support services. Consolidated revenues increased to $2.0 million in Q1 2006 from $1.3 million in Q1 2005 or 52% quarter over quarter. The results represent continuing growth across Parlay’s portfolio of licensees and the impact of new licensees during the quarter.
Expenses in Q1 2006 were $1.5 million, up from $1.1 million in Q1 2005. The increase represented the impact of higher compensation costs and higher costs to support licensees.
Net income for the quarter was $0.3 million, or $0.02 per diluted share, compared to $0.1 million, or $0.01 per diluted share in Q1 2005.
Parlay remains debt free and Parlay’s cash balance at March 31, 2006 was $1.0 million.
Parlay Entertainment Inc. Consolidated Balance Sheets
