REPORTING
In its fourth quarter,
Parlay Entertainment Inc. saw a 53 percent drop in royalty revenue when compared to the same period in 2007.
The Internet and TV bingo software solutions provider revealed the drop to 871,661 Canadian dollars in royalties when it posted fourth quarter and full year earnings on Wednesday. Royalty revenue for 2008 was down 40 percent compared to 2007.
There was also a 38 percent decline in total revenue, which was reported as 1.2 million Canadian dollars.
Scott White, the company’s chief executive, explained in the earnings statement that Parlay took steps last year to move away from U.S.-facing business and towards Europe -- specifically the United Kingdom.
“The impact of that divestiture required that that we bring our cost structure into line with revenue, which efforts were substantially completed in Q4,” he said. “We also anticipated that it could take up to three quarters to see the results of refocused sales and marketing initiatives translate into new royalty revenue.”
Full-year results showed a 1 percent slip in total revenue at 8.5 million Canadian dollars. Net income was at 497,909 Canadian dollars -- up from a net loss of 50,687 Canadian dollars last year.