Sports Internet Climbs the Ladder
Sports Internet Group, soon to be part of BSkyB, the dominant player in televising Premier League football matches, jumped from 40p to 685p from Wednesday to Thursday. At one point Thursday, the company climbed above 700. The company's stock took a plunge immediately after the BskyB announcement, but has rebounded nicely.
Consumer Tips for Online Investors
The Department of Corporations, California's securities regulator, last week released its "Top-Ten Tips for Online Investors." They are as follows:
When you invest online, be sure to:
Step 1: Receive full disclosure, prior to opening your account, about the alternatives for buying and selling securities and how to obtain account information if you cannot access the firm's Website.
2. Understand that most likely you are not linked directly to the market, and that the click of your computer mouse does not instantly execute the trade.
3. Receive information from the firm to substantiate any advertised claims concerning the ease and speed of online trading.
4. Receive information from the firm about significant Website outages, delays and other interruptions to securities trading and account access.
5. Obtain information before trading about entering and canceling orders (market, limit and stop loss), and the details and risks of margin accounts (borrowing to buy stocks).
6. Determine whether you are receiving delayed or real-time stock quotes and when your account information was last updated.
7. Review the firm's privacy and Website security policies and whether your name may be used for mailing lists or other promotional activities by the firm or any other party.
8. Receive clear information about sales commissions and fees and conditions that apply to any advertised discount on commissions.
9. Know how to, and if necessary, contact a customer service representative with your concerns and request prompt attention and fair consideration.
10. Contact the Department of Corporations to (1) verify the registration/licensing status and disciplinary history of the online brokerage firm, or (2) file a complaint, if appropriate.
Good News for Wireless Investors
Charles Schwab & Co., Inc. and Ericsson have formed a global technology alliance in which the two companies will jointly design, develop and launch targeted Internet applications using mobile phones. The projects will aim to extend the functionality of the wireless investing services that Schwab is providing to its international community of customers. "Our customers have an insatiable appetite for real-time investment information and easy-to-use investing tools wherever they are," said Gideon Sasson, enterprise president of Electronic Brokerage for Charles Schwab. "Our alliance with Ericsson, a leader in wireless
Internet technology with an impressive list of customers across the globe, is important for Schwab as we leverage new technologies to service our expanding international customer base." The two companies will deliver wireless trading applications based on WAP (Wireless Application Protocol). Under the terms
of the agreement, Schwab will leverage Ericsson mobile technologies such as its Mobile E-Pay
security platform, to deliver wireless investing services globally.
Czechs Dig Online Investing
BridgeNews reported last week that online trading is becoming a big hit in the Czech Republic. The numbers of brokers and investors online have both climbed significantly of late. "Analysts predict more growth, though that of direct 'day-trading' is likely to be subdued for some time due to as-yet low Internet penetration," the news service reported. George Formandl, director of Brokers Online Investor, a firm that started offering Czech stocks in late '99, points out that the Czech over-the-counter market, the RM-System, is great for online trading because it moves so quickly. "It's much faster, it's a more active market, it's more aggressive for retail investors, and that's the client that we're trying to attract for U.S. trading," Formandl said. Several local brokerages--including Stratego Invest, Fio Holding, Boehm & Partner, Sati, Online Investor, Komerio and Efekta Consulting--already offer trading via the Internet in Czech and/or foreign stocks, usually U.S. or U.K. equities. Others will begin online trading soon.
MGAM Announces Progress of Stock Buyback Plan
Multimedia Games Inc. announced that the company has acquired approximately 40,000 shares of its common stock under the buyback plan that it disclosed in April. The board authorized the buy back of up to
300,000 shares at that time. "I am told that over the last few weeks we have bought back virtually all the stock allowed under SEC regulations," CEO and Chairman of the Board Gordon Graves said. "We still believe MGAM stock is undervalued and intend to continue repurchasing shares."
Gaming Revenues Rocket for GIC
Redundantly redundantly named GIC Global Intertainment Friday announced that its combined wagered revenue for Cyberbetz Casino & Sports Book during the month of May 2000 was $3,979,666.50, over $1 million dollars more than the previous month's figures.
E-Vegas.com Announces Annual Meeting
E-Vegas.com Inc. will hold its annual shareholders meeting this Thursday at 10 a.m. in Kelowna, BC. For further information, refer to www.freeedgar.com.
PlayandWin Hires Investor Relations Firm
PlayandWin Inc., holder of an exclusive license for a pari-mutuel bingo game, announced that it has retained American Financial Communications, a California-based leading investor relations and consulting firm, to assist PlayandWin in its business strategies and investor relations.
Quarterly Reports
American Wagering, Inc. (BETM)
|
2000 |
1999 |
| Total revenues |
$3,056,911 |
$3,010,123 |
| Total Operating Costs and Expenses |
3,712,529 |
2,684,992 |
| Operating Income (Loss) |
655,618 |
325,131 |
| Total Other Expense |
44,180 |
57,951 |
| Income (Loss) |
699,798 |
267,180 |
| Interest Expense |
$27,000 |
$27,000 |
| Net Loss Applicable to Common Shareholders |
737,914 |
251,410 |
- Revenues rose 1.6% to $3,056,911 from $3,010,123 in the year ago period.
- Revenues increased despite a decrease of $396,112 or 22% in wagering revenues.
- Handle (amount wagered) increased by $3,114,812 to $25,908,151
- Net win percentage declined by 31.6% from 7.6% in the year ago period to 5.2% for the quarter ended April 30, 2000.
- The decrease in wagering revenues was offset by additional Systems revenue of $396,101 and the addition of keno revenues of $76,457. (AWI attributes the increase in systems revenue to increased equipment sales.)
- For the quarter ended April 30, 2000, the company incurred an operating loss of $655,618 as compared with operating income of $325,131 for the year ago period.
- Net loss per share was $0.09 as compared with net income of $0.03 in the year ago period. (AWI attributes the net loss to the additional cost of operating keno and increased expenses of wagering operations.)
- Research and development costs increased $153,917 to $305,298.
Autotote Corporation
In thousands:
|
Three Months ended April 30, 1999 |
Three Months ended April 30, 2000 |
| Pari-mutuel Operations |
|
|
| Total Current Assets |
$21,297 |
$23,904 |
| Gross Profit (excluding depreciation and amortization) |
8,919 |
10,840 |
| Venue Management Operations |
|
|
| Service Revenue |
$15,432 |
$15,723 |
| Gross Profit (excluding depreciation and amortization) |
3,964 |
4,399 |
| Lottery Operations |
|
|
| Total Revenue |
$16,193 |
$11,434 |
| Gross Profit (excluding depreciation and amortization) |
3,778 |
3,018 |
| SJC Video Operations Operating Revenues |
|
|
| Service revenue |
$157 |
-- |
| Gross Profit (excluding depreciation and amortization) |
(30) |
-- |
| Company Total Operating Revenues |
|
|
| Total Revenue |
$53,079 |
$51,061 |
| Gross Profit (excluding depreciation and amortization) |
$16,631 |
$18,257 |
Pari-mutuel operations service revenues of $19.5 million for the second quarter of fiscal 2000 improved $0.9 million or 5% from the second quarter of the prior year. (Autotote: "This improvement reflects primarily $1.0 million in revenues from the German operations that were acquired in the fourth quarter of fiscal 1999 and improved revenues in the company's NASRINTM operations.")
Pari-mutuel operations sales revenues increased by $1.7 million to $4.4 million in the second quarter of fiscal 2000 (Autotote attributes this to the sales of terminals to the company's international customers, primarily in Italy and Finland.)
Pari-mutuel operations gross profit of $10.8 million or 45% of total revenues, increased from gross profit of $8.9 million in the same period last year.
Venue management operations service revenues of $15.7 million for the second quarter of fiscal 2000 increased 2% over the service revenues in the second quarter of the prior year.
Handle-related revenue increases of 4% in the Connecticut OTB operations and 6% in the Netherlands operations.
Gross profit was $4.4 million or 28% of service revenue in the second quarter of fiscal 2000, an increase over the gross profit of $4.0 million or 26% of service revenue in the second quarter of fiscal 1999. (Autotote attributes the improvement to higher handle-related revenues and cost savings in the Connecticut OTB operations.)
Lottery Operations service revenues in the second quarter of fiscal 2000 of $3.1 million improved $0.7 million from the second quarter of the prior year.
Sales revenues decreased $5.5 million to $8.4 million in the second quarter of fiscal 2000. (Autotote attributes the decrease to the April 1999 sale of a lottery central system, terminals and communications equipment to the Montana lottery, and fewer terminal sales, primarily for use in Italy.)
Lottery operations gross profit of $3.0 million or 26% of total revenues, decreased from gross profit of $3.8 million or 23% of total revenues in the same period last year.
Selling, general and administrative expenses including software development costs decreased $0.2 million or 3% to $6.3 million in the second quarter of fiscal 2000.
Depreciation and amortization expenses decreased $0.1 million or 3% to $5.1 million in the second quarter of fiscal 2000.
Interest expense increased $0.1 million to $4.2 million in the second quarter of fiscal 2000.
Income tax expense was $0.2 million in the second quarter of fiscal 2000 and $0.1 million in the second quarter of fiscal 1999.