GigaMedia to focus on social casino after 50% profit plunge
Taiwan-based operator believes its social casino platform can improve financial performance after disappointing Q2 results
GigaMedia is to focus on building a strong social casino offering, the company announced following a 50% year-on-year fall in second quarter gross profits.
The Taiwan-based company’s second quarter results showed gross profits had halved to US$1.9m, down from $3.9m in Q2 2012.
Year-on-year revenues for the three months ended 30 June also fell sharply to $3.7m, a 49% decline from $7.1m during the same period last year.
But CEO Collin Hwang believes extending the company’s social casino platform to web-based and mobile games can turnaround the firm’s financial performance in what he describes as a “watershed year” for GigaMedia.
“Our growth plan [starts with] building a strong multi-platform offering of social casino games,” Hwang said in an earnings conference call. “Social casino games are our core strength and has been the strength of FunTown since the business started over 10 years ago.”
“We are transforming [an old unfocused] games company into a new leader in social casino games using cutting-edge technology,” he added.
GigaMedia, which sold its 33% stake in egaming brand Everest to the Betclic Everest Group last year, had announced potential social casino acquisitions and strategic partnerships in June with plans to launch new social casino games in late 2013 or the first quarter of 2014.