Second Quarter IPO Planned for William Hill
William Hill said this week that it will have a second-quarter initial public offering. The company is said to be close to appointing Schroder Salomon Smith Barney and Deutsche Bank to advise its flotation, which could be worth as much as £1.2 billion. William Hill is the second-largest British bookmaker; it is expected to make a final decision on its pending IPO when market conditions become more apparent.
Rebound in Sight for Stanley Leisure, Analyst Says
Analysts are predicting that Stanley Leisure’s (SLY) interim results will show early signs of financial well being after last year’s economic difficulties.
The bookmaker will release its interim report on Wednesday, and according to Williams de Broe analyst Richard Finch, the figures are likely to have rebounded slightly from the last time the bookmaker released results. Last year’s report reflected success from several high rollers at one of the chain’s premier casinos near the end of the year, material start-up losses from the company’s e-commerce operation, management changes at casinos and disturbances caused by inclement weather and foot-and-mouth disease.
Finch said this week that he expects Stanley Leisure to benefit from the United Kingdom’s new gaming regulations, which include tax-free betting and the new importance being placed on Internet operations. Finch foresees a pre-tax profit of £16.5 million for the company.
Ainsworth Jumps After PBL Announcement
Shares of Ainsworth Game Technology (AGI) climbed 6 percent this week after Publishing and Broadcasting (PBL) announced it will contract with the company to develop exclusive games for crowngames.com.
Analysts, though, are calling the price surge an overreaction, saying the deal favors PBL. According to the agreement, while AGT will be producing games exclusive to PBL, PBL is free to use games from any software supplier. The site’s current offering of table and slot games was produced in-house.
PBL launched the online casino, which is based in Vanuatu, at the first of the year. Ainsworth has been listed on the Australian Stock Exchange for one month. Its floatation in December raised AU $50 million.
Andrew MacDonald, chief executive of PBL’s Vanuatu operation, said so far the online casino is performing well.
“Since the official launch of the PBL gaming site crowngames.com on 3 January 2002, the response from players has been encouraging,” he said.
MGM Dealt Blow by Moody’s
Moody’s Investors Service on Monday downgraded MGM Mirage (MGG) to junk-bond status, raising investment costs for the company, which has said it will debut its Isle of Man-licensed online casino later this year.
In addition to raising a company’s borrowing costs, the downgrade could force sales of the stock by investors who are not permitted to own junk bonds. Moody’s also downgraded Park Place Entertainment.
Moody’s said the rating will affect $7.8 billion of MGM Mirage’s debt and $5.2 billion of Park Place's debt. The company’s president and chief financial officer said the rating was premature.
“When the best gaming company gets downgraded to subinvestment status, it sends a chill through the industry that’s unnecessary and unwarranted,” Jim Murren said. “This isn’t a reflection on MGM Mirage, it’s a reflection on Las Vegas.”
Woodbine Sees Wagering Numbers Soar
Woodbine Entertainment Group reported a record year for horse race wagering this year. The company, which said earlier this month that it will launch Internet operations within the next 6 months, received a record $1.36 billion in wagers in 2001, an 11.1 percent boost from last year’s figures.
The company, which operates Woodbine and Mohawk Racetracks, saw increases in wagering on markets outside the greater Toronto area, including a 54 percent increase in harness race wagering and a 50 percent increase in thoroughbred racing in the United States.
Feverpitch to Issue Nine Million Shares
Feverpitch International has set its sights on raising $4.5 million to purchase its associates, FPH and Feverpitch Exchange, as well as the technology to power its person-to-person betting site.
The New Zealand company plans to issue nine million shares at 50 cents each and will release four million of the shares slowly over time if it generates $14,850,000 during the next four years. If that goal is not reached, the shares will not be issued and the price paid to FPH’s owner, Hyperfactory Investments, will be reduced.
Derek Handley, Feverpitch’s managing director, said tying revenue to share issuance is aimed at winning investor support.
“Trying to convince investors on projected cash flow values alone doesn’t work anymore,” he said.
eBet to Show First Operating Profit
I-gaming company eBet Ltd. (EBT) will see its first operating profit for the quarter to Dec. 31, 2001. It said it is nearing positive earnings before interest, tax, depreciation and amortization for the year to date and expects to see further improvements during the rest of the financial year.
eBet’s unaudited preliminary figures reflect an EBITDA of about $450,000. The company’s customer receipts totaled more than $2.76 million during the quarter, an increase of 77 percent from the previous quarter.
For the year to June 20, 2001, the company had a net loss of $7.8 million.
Bingo.com Conference Call Jan. 22
Interactive bingo company Bingo.com (BIGR.OB) will hold a conference call from 1:30 to 2 p.m. PST on Jan. 22. The conference is open to all current and interested investors; to participate call 1-877-888-3855. Pre-registration is required. To pre-register, call 1-877-677-0839 or 416-253-3967. A replay of the call will be available until Jan. 29 by calling 1-888-509-0081.
Penn National Gaming Conference Call Feb. 7
Penn National Gaming (PENN), which powers Playboy’s horse race wagering site, will host a conference call to discuss its fourth quarter earnings at 10 a.m. on Feb. 7, the same day it will release the financials. To participate in the call, call 212-676-5234 or 415-537-1944 five minutes prior to the call. Questions and answers will be limited to analysts and investors. The conference will also be Webcast at www.companyboardroom.com; Internet participants should allow 15 minutes to download the necessary software.
A replay of the call will be available until Feb. 21 by calling 1-800-633-8284 or 858-812-6440 for international callers. The access code is 20205482. The replay will remain at www.companyboardroom.com for one month.