WPT Financial Results Disappoint Again

WPT Enterprises Inc., creator of the World Poker Tour, reported a fourth quarter loss of $1.1 million, or 5 cents per share, late Monday. This loss came despite a revenue increase of 13 percent from the prior year to $5.9 million.

And while the shortfall was an improvement over the 7 cents per share loss from the same quarter a year ago, it still did not meet analyst expectations. As a result, WPTE’s share price dropped 13 percent to $4.28 on Tuesday. Shares bounced back 15 percent to $4.93 on Wednesday, but were down in after-hours trading.

Analysts have downgraded the stock, citing upcoming spending to rebuild the company’s online poker platform, as well as increased marketing expenses expected for the site. Long-term, however, analysts see improvement on the way.

Originally published 5:03 PM Wednesday, March 14, 2007