The Cap Is Up
The investment sector of the Interactive gaming industry enjoyed its first successful week since the launch of the RivTrend I-Gaming Indices last month. The EuroAustralian index, in particular, was up 10.62 percent. On Oct. 27, the index closed at 98.88, climbing a week later to 102. Investrend Research analyst John Dutton attributed the gain mainly to Hilton Group's (HG.L) dramatic upswing, closing at 208 pence Friday, up from 185 on Oct. 27. (U.K. analysts expect Hilton's third quarter reports to be positive, boosting share prices.) Other companies driving the positive growth were Boss Media (BOSS), hitting 70kr on Friday, compared to the previous week's closing price of 64kr. ENIC plc (ENI.L), too, posted gains from 168 to 179 during the same time period, as did Stanley Leisure (SLY.L), which rose from 160 -1/2 the week before to 166 on Friday.
Stock Buy Back
Up to 2 million shares of outstanding common stock will be purchased as part of a stock buyback plan
approved by United Trading.Com's board of directors. "The result of the stock buyback plan," explained Norman Wright, company president, "will be a reduction in the outstanding shares of United Trading.Com." He added, "We find the current market price is an opportunity to deploy our capital efficiently by buying our own stock. This action is consistent wit the company's continued efforts to increase shareholder value."
Companies to Watch
Tabcorp Holdings Ltd. (TAH.AX) revenues are rising reports Egoli, with first quarter revenues up more than 69 percent, bringing in A$481 million. A breakdown of those figures show gaming increased 9.3 percent to hit $216 million, while wagering rose 4.5 percent, hitting $90 million. In addition, Star City Casino contributed $174.2 million. "Many of you will be aware that sports betting has been available from the company's website for a number of months," Tabcorp chairman Michael Robinson said, "This has contributed to the significant growth achieved in this area. Internet wagering will be launched in the next few weeks and we believe that this additional service will be welcomed by our customers." Earlier this year the Tasmanian government awarded Tabcorp an interactive gaming license. As for future plans, Tabcorp representatives confirmed that, should the South Australia TAB and Lotteries be privatized, Tabcorp would be interested in making a bid for the two operations.
October figures from Australian betting operator Canbet (CBT.AX) showed the company keeps chugging on the success train. An Egoli article broke down the figures, showing turnover was up 299 percent, hitting A$31.3 million. Nearly 40 percent of that came from American college football betting, while the National Football League contributed another 37.9 percent of those figures. A breakdown of regional betting showed that betting from the U.S. netted 76.7 percent of turnover, while Australians contributed a measly 15 percent of turnover.
Publishing and Broadcasting Ltd. offshoot ecorp reports a positive cash flow for the just completed quarter, having A$96.5 million in cash while its various business platforms are expected to achieve profitability. Customer receipts were $10.01 million for the quarter. PBL's recent annual report, however, forecast ecorp reporting a loss for the year.
Was it Congress that Did It for Crypto
Rep. Bob Goodlatte's failure to get his Internet Gambling Prohibition Act reconsidered for a vote in the
U.S. House of Representatives has reassured investors, say some investment analysts, who point to a jump in Cryptologic Inc.'s (CRYP) share price. A Nov. 3 Reuters article shows Crypto's share price rose more than C$2.05 that day. "People are pretty sure that we are not going to have nay Internet legislation this year in the United States. So it is a positive development for the company, " commented analyst Peter Swan, with San Francisco-based Pacific Growth Equities.
Customer Awarded After Stock Losses Caused by Wrong Price
E*Trade, an online brokerage firm, was ordered by the National Association of Securities Dealers to pay
$38,226 to a former customer who suffered losses thanks to incorrect stock price information from the firm.
The customer accused E*Trade of negligence and breach of fiduciary duty after it listed an incorrect price
during AOL's merger with Netscape Communications two years ago, according to CNET News, causing the customer to suffer major losses in his brokerage account.
Quarterly Results: dot com Entertainment
Third quarter results were issued by dot com Entertainment Group, Inc. (DCEG), for the period ending September 30, 2000. Highlights from the report show:
- Revenue increased by 238% to $529,571 from $156,703 in 1999.
- Net income was $48,751 compared to a loss of $(4,155) in 1999.
- Two additional licensees signed subsequent to quarter end.
- Company generated positive cash flow from operations bringing cash to $583,497.
The increase in revenue for the quarter to $529,571 from $156,703 in the prior year results from higher
royalties, support and maintenance charges. Net income increased to $48,751 [$0.005 per share basic and
$0.004 fully diluted] in the third quarter of 2000 from a loss of $(4,155) or $(0.00) per share in the prior year. Operating expenses increased to $448,319 for the quarter ended September 30, 2000 from $160,858 for the same quarter in 1999. The increase in operating expenses primarily reflects the significantly higher level of activity in software development and marketing by the company.
Revenues increased to $1,271,793 for the nine months ended September 30, 2000 from $299,967 for
the nine months ended September 30, 1999. The growth in revenues results from higher royalties and support and maintenance charges. Net income increased to $114,220 or $0.01 per share for the nine months ended September 30, 2000 from a loss of $(99,488) or $(0.01) per share in the prior year.
Net cash provided by operating activities was $73,216 and $ 76,790 for the three and nine months
respectively ended September30, 2000. These amounts compare to $(7,028) and $(239,255) in the prior
year. The improvement results from higher net income, increased non-cash expenses and a lower increase in non-cash working capital items.
More Reports
Betinternet plc - Annual Report (PDF)
International Thunderbird Gaming Corporation - Third Quarter Report