Bingo Software Provider Parlay Announces Revenue Losses - 03-24-08

March 24 - Adaptation to the changing legislation in the US gambling industry, following the introduction of the Unlawful Internet Gambling Enforcement Act in 2007, may have impacted the total revenue of Parlay Entertainment, one of the biggest providers of internet bingo software in the world.

Last week, Parlay Entertainment released its fiscal results for 2007 and showed a drop of 11% in its total revenue for the year, and a 6% decrease in royalty revenue overall. The company's total revenue for 2007 was thus $8,032,109, while royalty revenue stood at $7,322,353.

Scott White, Parlay Entertainment's CEO said: "In 2007, Parlay was faced with a number of challenges, which most importantly required that the Company adjust to a changing US regulatory environment. While these changes had a negative impact on revenue and earnings, Parlay made significant investments in technology, sales and marketing. These investments have allowed for the completion of several new UK and European-facing licensing arrangements, and as these arrangements transition into active businesses throughout 2008, we anticipate that they will make a meaningful contribution to royalty revenue."

As far as results for the company's fourth quarter of 2007 showed, Parlay's total revenue dropped 6% to $2,041,351, while fourth quarter royalty revenue stood at $1,883,784 - another 6% decrease.

Most of Parlay Entertainment's revenue is generated from the licensing and installation of superb bingo software, as well as support services offered to its partner sites.

The company reported an increase of $500,000 in costs in the last quarter of 2007 - from $2,100,000 to $2,600,000. Part of these increases were due to increased bad debt expenses and adverse foreign exchange effects.