ESI Losses Attributed to US Gambling Ban - 05-26-07
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May 26 - Due to the US online gambling ban, ESI Entertainment Systems Inc, owner
and operator of popular online payment processor, Citedal Commerce, reported a
huge loss in its revenues for the last financial year.
The Canada-based ESI reported that in 2006 it lost $5 million in revenues as a
direct result of the US online gambling when it closed its operations down in
the United States.
While in 2006 ESI revenues did go up by 19 per cent increasing the company's
earnings to $22 million, over $6 million was considered an asset write-off
because of the US situation. Company gross profits also increased by 41 per cent
up to $13.5 million.
An ESI spokesperson was quoted as saying that its results speak for themselves,
despite the write-off, and that the company was aiming to focus it efforts on
expanding into other markets such as Europe to help replace its lost US customer
base.
Over 90 per cent of ESI's revenue is currently generated from
Citadel, one of
the main online payment methods favored by online gamblers the world over.
