Flotations and Takeovers in the UK
AIM-traded betinternet.com, the Isle of Man-based bookmaking firm, received a takeover bid from an unknown party last week. The company issued a tersely worded statement acknowledging that an approach had been made. Company officials were reviewing the offer, the statement said, which "may or may not lead to offers for the share capital of the company." Industry observers suggested that Power Leisure could be making the offer, although one analyst told The Scotsman, "I would be against it (Power Leisure) buying betinternet.com as I don't think the price is right. They prefer to buy distressed businesses."
British betting behemoth William Hill may finally have its own stock flotation, reports the Sunday Times. On the eve of a prior flotation attempt two years ago the company was bought from Nomura by venture capitalists Cinven and CVC Capital Partners for £825 million. This go around has the flotation, valued at £1.5 billion, likely to occur in 2002. Should William Hill's flotation be successful, competitors Coral and Ladbrokes would likely follow suit.
£12 Million Will Bring on the Dogs
Gaming Internet is reportedly looking to raise up to £12 million as part of an institutional placement to develop its online greyhound betting site Gobarkingmad.com. "The funds raised will finance the further development of the Internet and interactive digital television delivery formats for gobarkingmad and the Zap Casino software and provide working capital," according to a company statement. News of the move caused Gaming Internet's share price to rise about 4 percent briefly last Monday before dipping back down to 26 pence. Shares were up again today, closing at 29 pence.
TheSUBWAY Reports on eLOT
With eLOT's (ELOT) share price taking an upward swing coinciding with its new relationship with Terra Lycos, TheSUBWAY gives eLOT an "attractive" rating. Last Monday, eLOT's share price was up 57 percent to $0.32 on volume of 3,620,200.
Poker.com Conference Call
Anyone who missed Poker.com's conference call last week can hear a taped version by calling 800-820-4690. Listeners are to use pin number 7009733 to access the call. An archived version of the call can also be heard by visiting: http://streamingnews.net/company_show?TICKER=PKER.
FirstBingo Finds Some Money
FirstBingo.com (FBIG.OB) has secured an offer for financing from Ampang Investments Inc. of the Bahamas. The offer comes in addition to FirstBingo's existing cash position and current line of credit. The combined offer will enable the company to continue its operations well into the next fiscal year. "The company's current financial position plus this additional financing will enable us to aggressively market the company and execute our business model," commented Rick Wachter, FirstBingo.com president.
On-Point/Interlott Deal is Now Official
On-Point's shareholders have officially approved an asset purchase agreement between On-Point Technology Systems Inc. (ONPT) and Interlott Technologies. Following the deal's closure, On-Point will be known as Global ePoint Inc. "The transactions with Interlott include a strategic arrangement which continues to give us the right to market our patented design for the world's first central-host computer activated instant winner lottery ticket. We believe, with the combined efforts of Interlott and our company, we can accelerate the time to market of deploying this technology, which has worldwide application," said On-Point CEO/Chairman Frederick Sandvick. "As a result of the approval by our shareholders of the sale of our lottery assets, our financial statements will show the reclassification of the operations related to our lottery assets as discontinued. Our continuing operations will now evolve as we transform the company during 2001 with our strategic initiatives. During that transition we will continue to evaluate the best strategies to enhance shareholder value."
Nasdaq Delistment News
Last week, officials at Nasdaq gave Youbet.com 10 days to boost its share price or face delisting. The company's stock has been trading below $1 since January, and Nasdaq required that it demonstrate its ability to trade at a figure of at least $1 for 10 consecutive days prior to May 21, an impossible task since it was selling for 74 cents last week. Youbet COO Ron Luniewski says the company actually has a month or more to meet the requirement while Nasdaq is in the process of delisting and told Daily Racing Form that even if it's delisted, the only change would be that the stock would be traded over the counter.
Youbet's stock has risen sharply today following news of the company's deal with Gemstar, parent group for TVG. As a result, shares were selling well over a dollar, with prices ranging from $1.15 to $1.51.
Virtgame Reports Profits
Virtgame.com (VGTI.OB) officials are happily announcing their second consecutive profitable quarter. Revenues for the first quarter ending March 31, 2001 were $250,799 compared to $0 for the same period last year as adjusted for discontinued operations. Net income for the first quarter of year 2001 was $21,259 versus the loss of $733,665 for the same quarter last year. Revenues were derived from work in progress contracts that were near completion at the end of the quarter. The contracts are expected to generate a stream of monthly recurring fees based on Virtgame's customers' number of active accounts, once they begin their e-gaming operations, which is expected to be in the third quarter of this year.
Record Revenues for Total Entertainment
First quarter numbers were up for Total Entertainment Inc. (TTLN.OB), which announced record revenues for the quarter ending March 31, 2001. Total revenues for the first quarter were $0.792 million, representing a 280 percent increase compared to reported revenues of the same quarter last year and a 30 percent increase over Q4. Net loss for the quarter was $0.282 million, or $0.00 per basic and diluted share, compared to a net gain of $0.339 million, or $0.01 per basic and diluted share, during the corresponding quarter in fiscal 2000. Total gaming handle for the first quarter was $25.516 million.
"This is the fifth consecutive quarter that we have achieved strong revenue growth. We anticipate continuing this trend,'' said Chairman/CEO Sandy Masselli. "Looking forward, we continue to grow our global business and maintain our leadership position while balancing the need to develop proprietary software, increase staff and leverage resources throughout the organization. Our goal in 2001 is to increase market share, improve profitability and increase shareholder value."
The net revenue from the casino operations for the quarter ended March 31, 2001 was approximately 248 percent more then the comparable 2000 quarter. Net revenues from the sportsbook operations were approximately 225 percent more then the comparable 2000 quarter. The higher volume was attributed, in part, to TTLN's implementation of a global advertising campaign and customer loyalty program designed to increase traffic to its websites. Member deposits increased 269 percent from Q1 last year.
"The loss this quarter is primarily attributed to the $150,000 write-down for pre-paid advertising expenses that we originally intended to be amortized over several quarters, along with the implementation of our customer loyalty program," Masselli. said
In further news, the company is exploring growth opportunities in Europe, particularly in the United Kingdom. TTLN is also putting the finishing touches on its new mobile betting service, which should be released within the next months.
Reports Released Last Week