A New Listing
Zaurak Capital Corporation, whose subsidiary CyberGaming Entertainment Inc. is a Starnet licensee, has filed an application for its stock to be quoted on the Canadian Dealing Network (CDN). If approved, the CDN application will enable Zaurak to apply for a CDNX Tier3 listing, a tier composed of former CDN quoted companies. Deadline for the Tier 3 listing is September 29, 2000. The company is already listed on the Toronto exchange as an OTC stock.
Starnet Sees First Quarter Revenues Increase 11 Percent
With the release of its most recent quarterly report, Starnet Communications International shows that revenues rose 11 percent from same time last year. Net losses for the quarter, however, were $1.8 million, or a loss of $0.06 per share, compared to same time last year that had a $0.4 million (or $0.02 per share) increase. Starnet officials maintain that the underlying business remains strong, however, with system-wide revenues (total revenues generated by all licensees) having increased 99 percent since the same period last
year.
Company revenue growth was also down, due to a 53 percent increase in royalty revenue compared that was largely offset by a 68 percent reduction in license fee revenue. Among the reasons cited for this decrease were:
- Several new licensees have delayed their site launch until after the full release of Beyond2000, Starnet's newest software package. License revenue is not recognized until the licensee's site goes live.
- A more stringent licensee qualification process has been implemented since last year.
- Additionally, a significant portion of licensing revenue from the first two quarters of fiscal 2000 have been uncollectable, which led to a bad debt-provision during third quarter 2000.
"Increased expenditures related to our strategic growth initiatives also adversely impacted our results," explained Starnet CFO Chris Thompson. "We are now in a position to handle the increase in business volume expected during the fall sports season and beyond. In fact, forty days into the second quarter of fiscal 2001, system-wide revenues to date have increase 125 percent over the same period last year."
Click here to read Starnet's Consolidated Balance Sheets as of July 31, 2000 and April 30, 2000.
LSE, Frankfurt Exchange Merge Crumples
A deal to merge the London and Frankfurt stock exchanges was nixed last week. LSE officials reportedly called off the merger to fight a hostile takeover move by Swedish technology firm OM Group, although LSE stockholders had been angered by attempts to merge the two exchanges. Following on the deal's failure Gavin Casey, the LSE chief executive, resigned his position. Casey turned in his immediate resignation last Thursday, after he managed to hang on to his position when nearly half of the stockholders opposed his re-election. Brian Williamson, chairman of the London International Financial Futures and Options Exchange, and European Securities Forum chairman Pen Kent have both been suggested to
replace Casey, the BBC reported.
Stock Movement
American Wagering, Inc.: The company's stock, which has been on a steady decline since late February, hit it a 52-week low recently, selling for $.6888 on September 15.
Asian Star Development, Inc.: Here's another company scraping the bottom of the barrel, with its stock selling for $.50 on September 14 -- a 52-week low.
eLOT, Inc.: Another 52-week low was experienced by eLOT, which saw its stock selling for $1.406 on September 15.
ENIC Plc: This U.K. entertainment company, which includes bookmaker Victor Chandler Group among its holdings, has seen its stock value slowly erode a bit lately. It fell last Tuesday from over 195p to under 185p and hasn't yet recovered. Today it closed at 184.5p.