WPT Enterprises, Inc. Q2 2009 Earnings Call Transcript

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2009-07-29 17:06:18.0

Tags: Cost Reduction, Call Transcript, Quarter, Spherion Corp., Earnings, WPT Enterprises Inc., SG&A, Seeking Alpha

Question-and-Answer Session

Operator

Thank you, sir. (Operator Instructions). And our first question comes from the line of Mark Smith with Spherion. Go ahead.

Mark Smith – Spherion Corporation

Just I've got a handful of questions here to run through with you. First off, if you could just give us anymore insight on G&A your guidance as you expect that to be down, but can you give us some insight sequentially how that G&A should flow?

Steven Lipscomb

Tom I would go, I'd let you take that.

Thomas J. Flahie

Okay. It’s a good question because we’ve had cost reductions as my prepared comments indicated starting back in the second quarter of 2008. And we largely completed our cost reductions in the first quarter of 2009. So the first real quarter reflecting all of the combined cost reductions for the second quarter of this year and we expect the SG&A to be similar going into Q3 and 4. SG&A is relatively fixed there is very little variable cost in there related – anything related to revenue.

Mark Smith – Spherion Corporation

Okay. So it’s relatively fixed, so where we saw that this quarter should be a decent run rate for us to look at?

Thomas J. Flahie

That’s right.

Mark Smith – Spherion Corporation

Okay, perfect. Discontinued operations from China, have we worked through that with this last piece here in Q2?

Thomas J. Flahie

Yes. We spend all the money that we’re going to spend the China operation is not going to take any more resources from the company.

Mark Smith – Spherion Corporation

Okay, all right. And then Steve can you just repeat I think you had given some numbers on your increase in people online, your ClubWPT. Can you just repeat that I think it was a 100,000 plus a quarter?

Steven Lipscomb

What the numbers were they're 18,000 subscribers those are the people who are actually paying us a monthly subscription in order to be a part of the club. And then there is a much larger number a 180 I am looking for I think is a 180,000 that are freeplay players. So, those are people certainly that we that play for free on the site and that we offer the club services, but they come and they play like they do on Yahoo Games for free. We have not yet gone after monetizing them from an advertising standpoint, but that certainly is something that we see in our future.

 

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