Youbet.com Cuts Workforce Down to 34 Employees
In a move to decrease costs, Youbet.com Inc. (UBET) said it would immediately reduce its work force by 29 percent to 34 employees and combine its online horseracing and sports-related products into a single website. In conjunction with the restructuring, Youbet said A.L. Frank, the company's president and chief operating officer, has left the company. Executive Vice President Ron Luniewski has been named to the additional post of COO, replacing Mr. Frank. The interactive-technology firm said the job cuts are intended to conserve cash in order to continue the development and expansion of its core horseracing business, including the introduction of its Internet-based product. The company didn't immediately disclose whether the job cuts would result in a charge against earnings. Shares of the companies stocks dropped from a high of $1 on Wednesday, the day of the announcement, to a low of 0.4688 on Friday.
Packer Back on His Feet
Australia's richest man, Kerry Packer, walked out of a hospital six days after receiving a transplant for his only kidney and media reports said he went straight back to work. Australian newspapers carried pictures on Wednesday of the media mogul leaving Sydney's Royal Prince Alfred hospital on Tuesday surrounded by his family and hospital staff. Packer's Consolidated Press Holdings refused to comment on newspaper reports that the burly billionaire went straight to his office for several hours of meetings with senior executives. Shares of his company, Publishing and Broadcasting Ltd. (PBL.AX) were down 16.7 cents at A$12.79 shortly after 2 p.m. (0300 GMT) on Wednesday.
All but Two Racetracks Back Go Racing Deal
Track owner Arena Leisure said on Friday that all but two of Britain's 59 racecourses had agreed to talk exclusively to consortium Go Racing about a 10-year interactive and terrestrial media deal. The mandate follows the Racecourse Association's (RCA) recommendation on Tuesday to hold exclusive talks on the
lucrative contract with the consortium, which includes Arena, Channel Four Television and satellite TV group British Sky Broadcasting. The racecourses must make the final decision by December 15 on who will hold rights to TV, Internet and interactive coverage of the races. But Go Racing considers it largely a "done deal". Go Racing's £400 million guaranteed offer beat out a similar offer from British TV group Carlton Communications because it offered the "more certain broadcasting coverage", according to the RCA. Go Racing plans to launch an online betting website and a dedicated TV station, and it is considering a 24-hour channel. Channel Four would launch a new lunchtime racing program. Britain's largest cable group NTL has said it would join Go Racing if the bid were successful.
Irish Bookmaker Paddy Power Gambles on Flotation
Ireland's leading bookmaker, Paddy Power, will take one of the biggest gambles of its corporate life next week when it offers investors in Dublin and London the chance to bet on its shares. The bookmaker said on Friday it would place just over nine million new shares at 2.40 Euros ($2.10) each with institutional investors to raise around 21.7 million Euros in funds. The placing will value the company, which claims around one third of the Irish betting market, at around 113 million Euros. Paddy Power, which will begin trading in London on Thursday, will list as Power Leisure Plc. The company posted pre-tax profit of 5.7 million Euros in the six months to June 2000. The company operates three divisions--licensed betting offices, telephone betting and online interactive betting.
CEO of Go Call Announces Intent to Buy Significant Shares of Company
Go Call Inc. (GOCA) announced its President/CEO plans to buy significant shares of common stock. Having recently opened a trading account at E-trade James Palmer, President/CEO of Go Call, has indicated he will buy up to one million shares of common stock in Go Call, Inc. The appropriate forms are currently being filed with the SEC.
Tabcorp Makes Slight Recovery after Stock Is Reassessed
Australia's Tabcorp Holdings Ltd. (TCH.AX) staged a mini-recovery Thursday from a recent drop in its share price as the market made a more considered assessment of proposed gambling machine controls.
On the Australian Stock Exchange, Tabcorp shares jumped 32 Australian cents, or 2.9 percent, to close at A$11.22, making the company one of the strongest performing blue chips of the day. The move goes some way to recovering the 85 cents, or 7 percent, it has dropped since Nov. 16 following the Liquor Administration Board's publication of proposals to combat problem gambling in New South Wales state.
If adopted, they would limit the amount and frequency of bets made on gambling machines in clubs and hotels in NSW. But one analyst noted that the proposals are only preliminary, and even if they are implemented, aren't expected to filter through to Tabcorp's Star City casino in Sydney for two or three years. What's more, only about 20 percent of Star's revenue is derived from gambling machines, known in Australia as Pokies, so the overall impact on Tabcorp, which also has large operations in Victoria state, will be relatively small, said the analyst, who asked not to be named.
365 Gambles on Spread Betting as Revenues and Losses Grow
365 Corporation has announced the conclusion of its spread betting deal with Sporting Index to coincide with the release of its interim results for the six months to 30 September 2000. The 12-month deal, which kicks in next month, will see Sporting Index become the exclusive provider of sports and financial
spread betting to users on the 365 network. Under the terms of the deal, 365 will receive a guaranteed fee every quarter with additional revenues dependent upon new accounts and ongoing betting activity. Sporting Index and 365 will also work together on "joint marketing and content opportunities". The news was released in conjunction with the company's results for the first half and second quarter of the year to
September 30, which show year-on-year revenues and losses growing. Compared to the first half of last year, revenues were up 131 percent to £22 million, but operating losses and pre-tax losses increased
13 times to £18 million and £16.5 million, respectively, giving a figure of 8.3p per share. According to the company, the revenue growth came from all of its main revenue streams, which include advertising and sponsorship, e-commerce, and the selling of content. Looking at the second quarter, revenues were up 20 percent to £12 million compared to the first quarter, while operating losses were down 11.8 percent to £3 million.