Gigamedia's Performance Contrast To Poker Sector.

2007-08-26

Taiwan-based Gigamedia, one of Asias first internet companies to list on the US Nasdaq, is gradually moving out of the ISP-over-cable business, and quickly becoming a power-player as an online gambling operator.

After setbacks in the ISP market, new profits are starting to come from gambling and gaming websites, especially poker and casino sites like Everest Poker. With approximately 54,000 new depositing customers in the past quarter and nearly 154,000 depositing customers total during that same period, Everest Poker has risen 254 percent year on year according to a company release.

Gigamedias revenues have surged 88 percent to reach $40M in the second quarter, while profits more than doubled to $10M.

These results are in a stark contrast with the online poker community as a whole, which last quarter performed “very weak” according to Traci Mangini or ThinkEquity Partners. While three quarters of Gigimedias revenue coming from European gambling sites, the company is trying to lure the coveted developing Asian online market.

Gigamedia plans to continue listing on Nasdaq, even with the United States recent intensified opposition to foreign gambling firms.

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