Global Entertainment Corp. announced its fiscal year end 2010 results, which proved to be lackluster for the integrated event and entertainment company. For the fiscal year ended May 31, 2010, the Company realized a net loss of $2.6 million, or $0.39 per share, compared to net income of $0.03 million, or $0.00 per share, for the prior fiscal year.
Revenues were also down to $11.3 million compared to $13.2 million during the fiscal year ended May 31, 2009, a decrease of $1.9 million, or 14.2%. In 2010, contributing factors leading to this decline were the fluctuations in initial fees and license transfer fees which are not regularly recurring and are difficult to predict. License fees – initial and transfer were $0.1 million in fiscal year 2010 down from $1.6 million in 2009, a decrease of $1.5 million or 93.7 percent. Ticket service fees also fell to $0.9 million or 8.3 percent of revenues from $2.8 million or 21.1 percent of revenues, a decline of $1.8 million or 66.3 percent.
Unfortunately, the economic downturn has continued to impact the entertainment industry, effecting needed liquidity and volatility in the industry as a whole. The Company has cut costs and overhead as much as possible thus far, but operating costs continue to rise. Total operating costs increased to $13.8 million for fiscal 2010 from $12.6 million in the prior fiscal year, a jump of $1.2 million or 9.5 percent.
Unless the economy starts moving in the upward direction, discretionary spending by consumers will continue to wane. Global Entertainment Corp. is currently seeking business changes in an effort to minimize uncertainty and improve their cash position.
Let us hear your thoughts below:
