I-Gaming Investors Corner (Nov. 26-30)

Australian gaming group Jupiters (JUP.AX) expects double-digit growth in earnings in fiscal 2002, the company said at its annual general meeting on Friday.

Lawrie Willett, chairman, said the prediction is based on achievement of theoretical win rates in commission play. During fiscal 2000-2001, Jupiters' net profit after tax increased 14.4 percent to AU $77.1 million. The profit rise was aided by an unusually high profit of AU $10 million in the high-roller section.

As for the group's long-range plans, the Brisbane and Gold Coast company said during the next decade it wants to emerge as primarily an online gambling business, a strategy that depends on the performance of Centrebet, the company's sports-betting division. During the year to June 30, Centrebet's revenue rose 100 percent to AU $18.4 million.

While that profit makes up only 2 percent of Jupiters' turnover, Jupiters believes the sports-betting branch will account for 6 percent of turnover by 2004. A German Centrebet Web site was set up this year and plans have been laid for a Spanish-language version by June of 2002.

For the past three years, Centrebet's profit has grown at a compound annual rate of more than 60 percent, said Rob Hines, Jupiters' managing director. Hines said in 10 years, Centrebet will likely be bigger than the rest of Jupiters.

Centrebet was bought by Jupiters in 1998 and is based in Alice Springs; it makes 87 percent of its annual revenue in overseas markets, primarily in Europe. Hines said Internet bets are generally higher because Internet users tend to be in higher income brackets than bettors at land-based casinos and bookmakers. Interestingly, Hines said Centrebet's growth is powered by the increased amount of sports broadcast on pay television, not by the rise in Internet usage.

Virtgame Trading Low

Virtgame.com Corp. (VGTI:OB) on Friday said its trading has been lower and lighter in terms of share volume.

The company, which is based in Ridgeland, Miss., also said it is changing its name to Virtgame Corp. and is increasing its number of common stock shares to 100 million from 30 million.

The I-gaming software company is trading below three of four moving averages and has a 30-day closing price range of between 3 cents and 6 cents. Virtgame stock closed Friday at 4 cents per share.

Feverpitch IPO Dec. 7

Sports betting software company Feverpitch International hopes to raise NZ $600,000 in an initial public offering.

The New Zealand company, which offers person-to-person betting on sports in the Australasia region, will use the cash along with NZ $200,000 supplied by its directors to purchase the assets and intellectual property rights of FPH Ltd.

The offer opens and closes Dec. 7.

The organizing broker, Jeremy Speight of DF Mainland, said prospects for the online sports betting industry are good since the market for it is "decidedly massive."

"It is a significantly growing industry," he said. "The reason we have gone out to the market now is we feel that there is an appetite for this type of business."

The company's board members include former Ernst and Young managing partner Richard Waddell and Simpson Grierson partner and former New Zealand Casino Control Authority chairman Jock Irvine.

eBet Chairman Increases Stock Holdings

The chairman of eBet Ltd. (EBT.AX), Michael Hale, increased his holdings in the gaming system development company by 100,000 shares.

Hale acquired the shares though MHGD Pty Ltd., in which he is a director and shareholder. Hale and entities that he has a beneficial interest in now hold 1,833,353 ordinary shares and one million options to acquire ordinary shares in eBet.

Investrend Spotlight on MDI

MDI Entertainment (LTRY: OB) received a "strong buy" recommendation and a yearlong target of $5 from Investrend research analyst Pivali Chakravarty on Thursday.

Chakravarty, who recently initiated coverage of the lottery services group, said MDI is "a solid performer within its unique niche in the instant ticket segment of the lottery industry and is uniquely positioned as the dominant provider of branded instant lottery products to North American lottery organizations."

The analyst said her report is based on MDI's strong third quarter and revenue growth in the amount of 150 percent for the first three quarters of 2001. MDI also had a 172 percent increase in earnings per share compared to the same nine months in 2000.

"We believe that management's unwavering focus on its core business, the company's existing contractual backlog and the implementation of several new contracts and initiatives will result in more outstanding operating numbers for 2002," Chakravarty said.

NSW TAB Stock Not Boosted by New License

TAB Ltd. (TAB.AX) of New South Wales on Wednesday announced it has gained state approval to operate a centralized monitoring system for electronic gaming machines, but the new license didn't cause the gaming company's stock to end higher by Friday.

The system will keep track of gaming machine activity and assess taxes for the NSW government for the more than 100,000 gaming machines in the state.

"It will make the collection of duty more efficient for venues and the government alike, while providing a new and ongoing revenue stream for TAB," said Warren Wilson, the group's managing director.

The day of the announcement, TAB's shares closed at AU $2.83 but by Friday were down to AU $2.72 per share at market close.

Report Released

Global Entertainment Holdings/Equities Inc. (GAMM.OB) reported lower third quarter earnings for the quarter that ended Sept. 30. Revenue for the quarter amounted to $849,299, compared with $1,211,621 for the corresponding period last year. The company stated two reasons for the revenue dip: the cancelation of sports events for the week after the terrorist acts on Sept. 11 and Prevail's suspension of marketing activities while redeveloping its Web sites.