Wednesday, April 14, 2010
Global Entertainment blames recession for $500,000 loss
Phoenix Business Journal
* Global Entertainment Corp.
Global Entertainment Corp. reported a net loss of $500,000 or 8 cents per share for the three months ending February 28. That compares with the previous three-month earnings report, which cited a net loss of $100,000 or 2 cents.
President and CEO Rick Kozuback faulted the recession for the loss at Global Entertainment (OTCBB:GNTB), which operates the Central Hockey League, builds and manages smaller entertainment venues, handles ticketing and licensing and provides food services.
Revenue for the Tempe company’s third fiscal quarter came in at $3.23 million compared with $3.54 million a year ago.
“The prolonged economic doldrums of the past 18 months, including an unemployment rate hovering around 10 percent, have continued to negatively impact the entire entertainment industry,” Kozuback said in a statement. “As such our revenues have continued to suffer.”
Facility management fees increased at arenas in Allen, Texas, and Independence, Mo. Those increases were offset by fee losses at Rio Rancho, N.M., Wenatchee, Wash., and Prescott Valley.
Kozuback said revenue increases came from food sales and license fees.
“Our belief remains that the economy will continue to improve as the year progresses and demand for entertainment faclities and events will return,” Kozuback said.
Global is currently building an entertainment venue in Dodge City, Kan. Global has had discussions with city and school officials about building entertainment and hockey venues in Scottsdale and Mesa. No decision is imminent in those cases.
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