Caribbean Markets Look into Unifying
According to an AP story, a group of Caribbean financial regulators are exploring whether to form a new Caribbean-wide stock exchange. Delegates from Trinidad and Tobago, Barbados, Jamaica, Eastern Caribbean countries and the Dominican Republic are meeting on September 18 with representatives from the Bahamas International Securities Exchange (BISX), and will examine linking their stock exchanges and developing a common currency.
AWI Finds a New Trading Low
It's been quite a year for Nevada sportsbook operator American Wagering Inc. The forced severing of its Australian Internet gaming arm (along with a hefty fine), an effort in the U.S. to ban college sports betting in the U.S. and the recent volatility of the stock market haven't made it any easy going for the company, which traded over the $15 mark in February 2000. The bottom fell out shortly after that, however, and the share price hit an all-time low of 0.875 on Thursday.
Autotote Financials
Autotote Corporation has completed its $308 million acquisition of Scientific Games. To finance the acquisition and repay existing debt, Autotote issued $280 million in senior secured loans and $150 million in senior subordinated notes. Autotote also issued $110 million new convertible preferred stock.
"This transaction demonstrates our commitment to both the pari-mutuel and lottery businesses and our conviction that these businesses should thrive as we execute our integration and expansion plans. It sets the stage for what could be the future expansion of the entire pari-mutuel and lottery industries through new games, distribution channels and entertainment options," said Lorne Weil, Autotote chairman and CEO. "We continue to invest in the business to achieve further efficiencies through such programs as the
consolidation of hubs and the application of the latest compression technology. We are also continuing to invest in racing such as our joint venture to develop the first global web-based pari-mutuel service with Arena Leisure plc. By applying the same business strategy to the lottery business, we should realize comparable savings and even faster growth."
Autotote also released results for the fiscal third quarter and nine months ended July 31, 2000. In the third quarter of fiscal 2000, revenue was $50.0 million compared to $53.2 million in the third quarter of fiscal 1999, a decrease of 6 percent. EBITDA (earnings before interest, taxes, depreciation and amortization) rose to $11.6 million from $11.0 million for the earlier period, an increase of 5 percent. Net income was $1.7 million or $0.04 per diluted share in the third fiscal quarter of 2000 versus net income of $1.9 million or $0.05 per diluted share in the same period last year.
For the first nine months of fiscal 2000, Autotote reported revenues of $150.6 million compared to $151.9 million for the first nine months of fiscal 1999. EBITDA increased 17 percent to $33.7 million from $28.7 million in the previous period. Net income was $4.4 million compared to $33,000 in the comparable period of 1999, and diluted earnings per share were $0.11 compared to breakeven in the first nine months of fiscal 1999.
UK National Lottery Reports
The U.K. National Lottery Commission released its 1999/2000 annual report, which shows that players won nearly £2.5 billion, bringing the total amount in the past six years to £12.9 billion in prize money and £8.2 billion for Good Causes. Total sales of £5.1 billion were 2.6 percent lower than in 1998/99.
GIC Announces Wagering Results
GIC Global Intertainment Corporation announced the combined wagered revenue of for Cyberbetz Casino & Sports Book during the July and August 2000 was $4,832,118.50. Cyberbetz saw a 400 percent increase in new client signups during July and August 2000 compared to the same time in 1999, following the introduction of new software on July 11.
Adding, Subtracting and Dividing
In order to pursue new opportunities, Global Technologies, Ltd. has terminated its operating agreements with Inter Lotto (UK) Ltd., and has divested its 27.5 percent stake in the U.K.-based gaming company. Under a termination agreement, Global Technologies and Inter Lotto have agreed to manage and operate the existing "Daily Number" lottery through December 31, 2000, with Global Technologies retaining all net revenues from the operations, after payment for prizes, charities, and sales commissions. As part of the agreement Inter Lotto has also remitted approximately £750,000 of value added tax rebates to Global Technologies to repay various debts owed by Inter Lotto to Global Technologies, and have resolved other
outstanding disputes and obligations.
U.K.-based Rodime plc has received shareholder approval to acquire Littlewoods Leisure betting and gaming division. Rodime will pay for the purchase through a two-for-three rights issue of 169,516,590 new ordinary shares at 10 pence per share and the proposed subscription by Newby Manor Limited for 168,282,663 new ordinary shares at 7p per share. Additionally, shareholders agreed to change the company's name to Sportech plc.
The Financial Relations Board/BSMG Worldwide Inc. will handle investor relations for Youbet.com.
Gocorp Reports Early Success
With 1,600 customers from 60 countries visiting Gocorp Limited's new AusVegas online casino, company officials report excellent growth since its July launch. Additionally, there have been 7,100 downloads of gaming software and 1,600 requests for the software CD. More than 60,000 qualified names have been added to the Gocorp prospect database. Company officials have also undertaken numerous cost-cutting steps, including staff reductions and lowering senior staff salaries, designed to reduce the company's cost of operation. As of August 31, the company reported cash reserves of $15 million. It's an impressive showing for the casino, but investors aren't impressed. The company's stock today closed at 0.125.
Click here to read Gocorp's report for quarter ending 30/06/00.