Autotote Announces Changes in Reporting
In order to accommodate its transition from reporting for a fiscal year to reporting for a calendar year, Autotote Corporation (TTE) issued a two-month report covering November 1, 2000 through December 31, 2000. These results include figures from Scientific Games Holdings Corp., which was acquired on
September 6, 2000.
Click here to see Autotote's Consolidated Statement for this period.
Dotcom 2000 Private Placement Completes Second Tranche
The second tranche for the Dotcom 2000's (YDC-CDNX) private placement has been completed, raising gross proceeds of $750,000. This is in addition to the $675,000 raised by the first tranche. Further tranches are expected to close prior to March 26, 2000 as part of the company's goal of raising $1.8 million through the various tranches. "This transaction strengthens our current working capital position and provides us
with additional capital to continue the development of our proprietary audio/video streaming software technologies. We anticipate releasing Version 2.1 of our existing A/V streaming software in the next 60 days," Dotcom 2000 President William Robinson said. "This new version of our A/V streaming software will provide live two-way audio and one-way video communications over the Internet. Our browser based A/V streaming software requires no downloads and is a substantial improvement over A/V streaming
software available from our competitors. The market opportunities for this product include the online entertainment industry, business to business and business to consumer Internet communications.''
TVG Proves to Be Costly Child
Interactive horse race wagering and broadcast firm TVG cost its parent company Gemstar-TV Guide International $59 million in costs and operating losses last year, reported the Daily Racing Form. With these latest figures, TVG has cost the corporation more than $90 million in losses for three years running. In 1999, losses for TVG totaled $32 million versus $890,000 in revenues; TVG listed losses for 1998 totaling $3.1 million against its $400,000 in revenues.
Stockholders Meeting Announcement
Pinnacle Entertainment, Inc. (PNK) announced its next stockholder meeting will be held May 22, 2001 at the Hilton Hotel in Glendale, California.
eLOT's Big Deal
eLOT, Inc. (ELOT) is purchasing all of the stock for Network60, a New York-based Internet promotions and permission-based direct marketing company. The company provides a direct marketing medium to traditional corporations, advertising agencies, and online companies via client-sponsored sweepstakes sites that function as lead generation vehicles, such as EasyWinning.com, CoolWinning.com and RadioStakes.com. Another site, PrizeChest.com, offers prize fulfillment. Following the deal's closure eLOT and Network60 will have combined registered users exceeding 3 million.
The sales agreement calls for eLOT to acquire the subsidiaries of Network60 in exchange for 3.5 million common shares of eLOT stock. Additional consideration in the form of common shares will be paid
contingent upon achieving specific contractual revenue and gross margin targets during the next 12 months. In 2000 the net cash revenues generated by the acquired subsidiaries were approximately $3 million. The
acquisition is expected to contribute to a reduction in eLOT's cash burn rate beyond the target previously disclosed.
"Network60 is a very good fit for eLOT," said Edwin McGuinn, eLOT's president and CEO. "This deal substantially increases our Internet audience and enhances our Internet marketing capabilities for governmental lotteries and other non-government entities, as well as expands our advertising sales
and development team. We will also be able to cross promote the Network60 properties with our existing consumer sites,www.eLotteryFreeWay.com and www.eLottoNet.com."
fluxx.com Reports Increases
Last year was successful for fluxx.com AG (FFXG), a Kiel-based broker of gambling technology. The company posted a 2.5 percent increase in gross sales for 2000 (DM 65.7 million), while gambling stakes handled were up 288 percent. Net sales were up 87 percent and EBITDA was down 18 percent.
According to provisional, unaudited figures, gross consolidated sales rose by 152 percent from DM 26.1 million to DM 65.7 million. The lottery and betting sales included in this figure, which were handled by the company's services jaxx.de, horses.de, lotto-sh.de and Telewette, actually rose by 288 percent from DM 8.4 million to DM 32.6 million. Net sales revenues totaled DM 33.1 million, compared with DM 17.7 million in the previous year (up 87 percent). These figures were well in line with expectations voiced at
the time of the initial public offering in September 1999 and analysts' forecasts.
The e-business services division, via which fluxx.com provides e-business services for business clients, generated 77.3 percent of net sales, with the e-gambling division accounting for 22.3 percent of the total. Net sales revenues from online gambling services rose much more sharply than the market and overall group sales, soaring 435 percent from DM 1.4 million to DM 7.5 million.
Fallout from the Big Announcement
Last Wednesday brought good news for most British bookmaking firms when it was announced that betting duty would be replaced by a corporate tax on their gross profits. The joy was tempered for some companies that realized the old system was actually better for their bottom line: IG Group (IGI.L), for example, estimates that its tax bills will increase 150 percent with the betting duty change. Company representatives for IG say that if the duty had been changed last year, their tax bill would have increased to at least £1.55 million, a steep increase of the actual £625,000 that was paid. A company statement read, "IG Group is disappointed that, while the amount paid by fixed odds bookmakers is likely to drop by 50 percent or more under the new regime, IG Group should be faced with an increase of the order of 150 percent." The company's stock prices were down 4 pence today, closing at 482 pence.
After Wednesday's announcement, a few companies saw their shares temporarily gain value, before taking a nosedive. Hilton Group plc (HG.L) saw its highest trading on Friday when shares were selling at 250 pence. Their prices dropped 4.75 pence today, closing at 242.50 pence. Stanley Leisure Group (SLY) also underwent a temporary price upswing last week, but prices dropped today from 242.50 pence to close at 237.50 pence. Sportingbet also had a steady decrease in its share price. Today's shares
were down 6.50 pence, while closing value was 110.5 pence.
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