Lakes Entertainment's Profits Improve Despite Fee Problems

On August 10th, 2007, Lakes Entertainment announced that their second quarter earnings have improved even though their profit was reduced sharply because of the absence of television licensing fees for the world poker tour (WPT) television coverage.

Lakes Entertainment is the parent organization of World poker Tour Enterprises Incorporated (WPTE), which handles the World Poker Tour, commented that their profits for the second quarter were $8.1 million dollars, which has slipped down from $11.2 million dollars from the same period last year.

Lakes Entertainment also stated that their net profits were $6.6 million or 25 cents per share, compared with the net profits of $3.2 million or 13 cents per share. Lakes Entertainment said that their profits were reduced by $1.4 million. One of the reasons why is the amendment to the exercise cost for the common stock purchase.

Lakes Entertainment's revenues were pushed by television licensing fees that are connected with the WPT television series of Lakes Entertainment's owned subsidiary, World Poker Tour Enterprises Incorporated.

In the second part of 2006 it showed nine episodes of the Professional Poker Tour (PPT) series, while they have showed no episodes of the PPT for the second quarter of this year.

However Lakes Entertainment made up for the profit loss with the interest income of $4.9 million dollars from their Shingle Springs Tribe casino plans.

The World Poker Tour Enterprises Incorporated which is based in Los Angeles is the parent company of the World Poker Tour and is owned by Lakes Entertainment Incorporated from Minnetonka, Minnesota.

September 10, 2007
Pauline Davis