Investrend Issues Investment Opinion on eLOT
Investrend analysts John Dutton and Gerald LaKarnafeaux, CFA have updated their initial research report on eLOT after the company acquired Network60. Through the acquisition, eLOT strengthens its position to service the U.S. and international lottery industry, while bringing additional flow to the company as it evolves to be cash flow positive, the two gaming analysts say.
Fraud Continues to Be Bad News for My Casino
Credit card scammers hit Vanuatu-based My Casino.com (ASX: MYC) last year for about A$4.3 million. In it's mid-year report the company listed net losses of A$11.26 million, mainly attributed to the earlier fraud costs. Operating revenues were A$3.5 million for the year through December 31, 2000. In its report to the Australian Stock Exchange, My Casino officials said the credit card scam "severely undermined the marketing position of the casino in international markets." They added, "the entrance of many more gaming sites online has further compounded the situation over the past nine months. This increased competition has reduced industry margins and the number of players visiting our site."
Scientific Games to Convert MDI Debenture
Scientific Games Inc., a wholly owned subsidiary of Autotote Corporation (TTE), entered into a strategic alliance with MDI Entertainment Inc. (LTRY) last year to jointly market lottery tickets with game themes provided by MDI. Since then, SGI has decided to voluntarily convert its $750,000 convertible subordinated debenture with a conversion price of $2 per share into 375,000 common shares. MDI President/CEO Steve Saferin commented, "MDI is gratified that our strategic partner Scientific Games has taken this action at this time. Our business has never been better and our future never brighter and Scientific Games is a large part of the reason."
Chartwell Releases Fiscal 2000 Results
Following a year that featured several major alliances, Chartwell Technology Inc. officials foresee growth in market share for both their "play for fun" and "play for real" gaming applications. Among last year's high notes: Chartwell formed relationships with Harrah's Entertainment, Lasvegas.com and Victor Chandler International, as well as launching its new Version 2.0 Java-based gaming software.
The company also reported that revenues for the fiscal year ended Oct. 31, 2000 were CAD$1,421,289, representing an increase of 441 percent over the previous year, mostly generated through software development and licensing fees. Operating expenses for the period were CAD$4,046,595, an increase of
79 percent over the prior year. Chartwell attributed the increase in expenses to a significant ramp up in operations concentrated on research and development, sales and marketing and increases in operational staff.
Additionally, Chartwell posted a loss of $2,625,306 for 2000 compared with a loss of $2,123,084 the previous year. A significant portion of loss represents an investment in software development attributable to the launch of the Version 2.0 product. Working capital at the end of the period was $9,052,077, which the company said gave them a strong balance sheet to fund future growth.
SLY Smacked by High Rollers
Profit levels for Stanley Leisure plc (SLY) have been hard hit by several high rollers playing at the company's Crockfords casino, causing officials there to warn that profit fluctuations could impact the company's financial reports. "This type of trading fluctuation within Crockfords is not unusual, but coming so late within our financial year, it will almost certainly affect the Group's final results," commented Bob Wiper, Stanley's chief executive. "I am, however, pleased to report that despite the continuing foot and mouth crisis, we have not materially reduced our profitability expectations for the year from the betting division. We shall continue to work extremely hard to mitigate against the effects of the disruption to the racing program." Stanley Leisure's fiscal year ends April 30.
Starnet Lets Numbers Loose
Starnet Communications International (SNMM) released its third quarter report last week, which showed revenues of $31.12 million for the quarter ended January 31, 2001, a 60 percent increase from the same quarter last year and a 40 percent increase from the quarter ended October 31, 2000. System wide revenues for the quarter ended October 31, 2000 were $22.21 million.
Further, the company's sales revenues from licensing for the nine months ended January 31, 2001 and 2000 were $1.63 million and $2.96 million respectively.
Click here to read Starnet's quarterly report.
fluxx Issues 2000 Annual Report
Officials at fluxx.com believe there will be profits to report during the fourth quarter of this year, instead of previous plans having the company break even by mid-2002. "The principal factors in moving into the black more swiftly will be a consistent approach to costs management and a concentrated focusing on the profitability of individual projects and products," said Mathias Dahms, deputy chairman of the board of management for fluxx.com AG.
Click here to read fluxx.com's 2000 annual report.
Stock Buyback for MGAM
The board of directors for Multimedia Games Inc. (MGAM) recently completed the repurchase of 300,000 shares of the company's common shares, and plan to purchase an additional 300,000 common shares and up to 500,000 Class A or B warrants, subject to bank approval. "The number of shares or warrants repurchased will depend upon prevailing market conditions and other investment opportunities intended to maximize long term shareholder value. The Class A and B warrants are convertible into common stock at $8.00 per share at any time until they expire in November 2001. When we announced our repurchase plan last year, we acknowledged that we expected to see a period-to-period increase in operating income, pretax income, EBITDA, and earnings per share for both the 2nd fiscal year quarter ended March 31, 2000 and for the next two subsequent quarters. The same is true for the remaining three-quarters of FY2001," said MGAM CEO Gordon Graves.
News from the Sales Block
Betting Market has been following the rise and fall of various U.K. gaming companies' stocks, leaving them to ponder which companies will be sold and which will do the buying. They suggest that Ladbrokes (the betting arm of Hilton Group plc), William Hill and Coral need to lower their asking price to attract buyers (not that any one of these companies will admit to being available). In Betting Market's opinion, Rank Leisure will probably buy Ladbrokes, while bingo operator Gala will acquire William Hill and a consortium led by Stanley Leisure will probably take over Coral.