Amid the Moratorium Blues, Lasseters Whistles a Happy Tune
Lasseters Online announced that it has already moved to profitable operations in its second financial year,
demonstrating the viability of regulated online gaming. In the first two months of the 2001 financial year, the company has reported revenue of $2.1 million, which is equivalent to 38.9 percent of the total revenue achieved during the previous year.
Lasseters Holdings Managing Director Peter Bridge say that, based on this result, the online division is now generating profits following a change in management approach. "Since postponing the company's initial public offer in April, we have focused on online revenue streams and return on investment," he said. "This has fast-tracked our online division into the black--even without the benefit of the investment funds expected through the float." Lasseters Online contributed $5.4 million, or 24 percent, of Lasseters Holdings' consolidated revenue in 2000, but finished with a loss of $3.5 million reflecting what the company reported as initial operating and technology costs. The site, which launched in April 1999, achieved turnover of $105 million by 30 June 2000. By 30 August 2000, the figure rose to $142.7 million with over 85,000 players in 210 countries participating.
Bridge attributes the recent improved returns to the company's conservative approach to online management and particularly to global marketing. "We applied our experience in the land-based casino business to the virtual market and this helped enormously. It focused us on the basics: know your players, know your markets and control expenditure based on how it will support returns. . . . Marketing has focused on the top 10 countries proven to have a high demand for online gaming and high turnover. These countries now account for 85 percent of our players and 94 percent of our revenue."
Bridge also said the company is still considering all options for a capital raising for Lasseters Holdings when market conditions are favorable. The group owns and operates both Lasseters Online and the Lasseters Hotel Casino in Alice Springs. "Our performance shows online gaming can be a strong, viable business," he said. "An IPO would provide the funds to repay debt and invest more in growing both the online and physical assets."
Euronext Approaches LSE Again
FT.com reports that Euronext, the newly launched European stock exchange, will soon speak to U.K.
regulators about presenting a renewed merger approach to the London Stock Exchange. Euronext Chief Executive Jean-Francois Theodore will visit London this week to assess the position of the LSE. Theodore is expected to make informal approaches to users off the LSE in light of a formal defense to be published by the LSE Monday regarding a hostile takeover bid by OM Group of Sweden. It is hoped that LSE will consider the merger as necessary for winning succeeding in its attempt to fight the OM bid. Euronext tried unsuccessfully to merge with the LSE in April.
KPMG: 'E-Businesses Continue to Spread, But for How Long?
The Economist Intelligence Unit for KPMG has released a global survey indicating that the recent slide in Internet valuations has not slowed the spread of e-business. The study, which polled 331 companies across seven sectors, shows that nearly half of multinationals are dotcom investors, a figure that rises to almost three-quarters among companies with revenues of $10 billion or more a year. Figures include direct equity stakes in start-ups, joint ventures and alliances. Researchers warn, however, that most executives are predicting a huge reduction in the number of Internet exchanges and that the success of such exchanges will be limited by an inability to customize products and supply credible information.
PlayandWin Does the Splits
PlayandWin Inc. (PWIN) announced last week a four-for-one split of its stock with a record date of Sept. 19, 2000, effective Sept. 29, 2000. "Strategically, now is the perfect time for this as we are planning for the company's future." PlayandWin's Stewart Garner said. "Racingo(R) is on the verge of exciting developments and the company must look towards other opportunities in the gaming business. Our decision is intended to increase our shareholders value." PlayandWin Inc. holds the exclusive license to the Racingo(R) online pari-mutuel bingo concept for the Internet as well as North American on and off-track versions of Racingo(R).
GTECH Release Q2 Results
Amid class action lawsuits filed on behalf of investors and a controversy involving the hiding information about a glitch in its lottery system, GTECH Holdings Corporation (GTK) last week reported poor results for the second quarter of fiscal 2001. The company reported losses of $0.61 per share including special charges. Earnings were $0.18 per share compared to $0.58 cents per share for the same quarter last year. The company issued a profit warning in July after it loss several contracts. The company says that production for the quarter was low because it was concentrating on making the necessary changes to get back on track and that it is prepared to turn the corner now that changes are in place.
GTECH Holdings Corporation - Consolidated Income Statements
United Trading.com Releases Revenue and Earnings Projections for 2000 and 2001
United Trading.com (UTTD) Tuesday announced its revenue and earnings projections for 2000 and 2001.
"With our broad based profitable product lines, there is significant upside potential for future growth," Norman Wright, company president, said. "United Trading.com is currently priced at less than 2 times 2001 projected earnings, a highly unusual situation for a company quoted on the OTC Bulletin Board. The company is in the process of finalizing several agreements which will be announced in the near future,'
said Norman Wright, company president." The company has completed its development phase after project development expenditures of $1 million over the last 12 months and has transitioned into revenue production with three sales of its casino gaming software licenses in July and August 2000 producing $750,000 in profits from these sales.
UTTD Revenues and Earnings Projections
Additional Filings
American Wagering - Second Quarter Results
Trans-Global Interactive Limited - Preliminary Final Report
My Casino Limited - Half Yearly Report