Boss Media May Miss Sales Targets
Swedish gaming software maker Boss Media (BOSS) might fall short of achieving next year's sales goals due to the economic downturn, its chief executive, Peter Bertilsson, told Bloomberg this week.
The company's profits fell for the first nine months of last year, but Boss still clung to its sales goal of 600 million kroner by the end of 2003. When Boss releases its fourth-quarter results on Feb. 12, it is expected to announce nine-month sales of 141 million kroner.
Since the beginning of last year, Boss shares have slumped 74 percent. Bertilsson said the sales goals were established two years ago, when competition in the I-gaming software market wasn't as intense.
"It's no longer about the number of customers we have, it's their size that's important," he said.
Merrill Lynch Upgrades Sun, MGM Mirage
Merrill Lynch is raising its investment ratings of Sun International Hotels (SIH) and MGM Mirage (MGG) to "strong buy" from "buy."
Reuters reported Friday that the investment firm is upgrading the casino and hotel owner because it expects the leisure industry to rebound from its recent downturn. Analyst Salvatore Di Pietro said investing in Sun is "an ideal way for small cap investors to participate in the leisure recovery."
Merrill Lynch also added MGM Mirage to its "Focus One" list. The casino company has development opportunities in Atlantic City, New Jersey and Las Vegas. It is scheduled to open an Internet casino and sports book later this year via the Isle of Man.
Sun's Internet gambling division, SunOnline, launched an online gaming site at the first of the year through its Isle of Man license. The Mohegan Sun, a casino in Connecticut that Sun manages, is getting a $960 million expansion that could foster Sun's growth in 2002 and 2003, Di Pietro said.
ecorp Sells Stake in ePredix
Australia-based ecorp (ECP) said this week that it has sold its 8.5 percent ownership of ePredix for $6.9 million. ePredix is a U.S. company that develops online pre-employment assessments.
Alison Deans, ecorp's CEO, said the sale would give the company a $2.8 million profit. She said the company is very happy with the return it has made for its shareholders.
"Our minority stake in ePredix was originally acquired in January 2000 to build our knowledge and relationships in the online recruitment sector, supporting our subsequent partnerships in Australia, New Zealand and Asia with Monster," she said.
World Gaming Aims to Raise $5 Million
World Gaming (WGMGY) is trying to raise $5 million by offering units of debentures and options via a private placement.
The U.K-based company said it will apply the funds toward infrastructure improvements and increasing its penetration of new markets. The securities for sale have not been registered under the U.S. Securities Act and cannot be sold in the United States without a registration or an exemption from the registration requirement.
The company also said this week that it is making a change to its second and third quarter income statements as they were reported on Nov. 21. The change will detail the reclassification of one-time charges of $494,000 that resulted in a reallocation of general and administrative expenses from the second to the third quarter. World Gaming's Sept. 20 year-to-date results will not be affected.
Scientific Games Looks Good to BusinessWeek
BusinessWeek is calling Scientific Games (SGM) a "growth story" and possible takeover target.
In the publication's Feb. 4 "Inside Wall Street" column, the lottery services company is identified as an attractive buyout opportunity. Scientific Games has 68 percent of the lottery market in the United States.
Scientific Games' stock closed at $8.74 on Friday. Its 52-week range is between $1.86 and $8.95.
Crypto's Stock Takes a Tumble
CryptoLogic's stock dove nine percent on Tuesday after a New York Times article reminded investors of the threat of anti I-gaming legislation in the United States.
The software company's stock was down CA $2.19 to CA $21.00 -- or US $1.36 to US $13 -- on the Toronto Stock Exchange. By Friday, Crypto's stock rebounded to close up 13 cents (U.S) at $14.30. Its yearlong range is between US $10 and US $30.23.
An equity analyst in Toronto told Reuters that the New York Times article, which ran on Monday, caused concern among investors by highlighting the problems Internet gambling sites have had recently processing credit card transactions.
Multimedia Games Conference Call Jan. 31
Multimedia Games (MGAM) will hold a conference call at 1 p.m. EDT on Jan. 31 to discuss its first quarter earnings. To participate, call 1-800-360-9865 or 973-694-6836 internationally. A replay of the call will be available until Feb. 7. To access the replay, call 1-800-428-6051 and enter the passcode 229129. International callers should dial 973-709-2089 and enter the same passcode.
Report Released
Stanley Leisure (SLY) got all kinds of attention this week from U.K. publications after releasing its first-half financials. Its half-year profits are up one percent, but the company has £2 million in debt from high rollers at its London casinos.
Profits from Stanley's 30 provincial casinos increased by 22 percent to £6.8 million, and drop per person at those casinos rose 25 percent. Betting profits are up four percent to £9.9 million. Bob Wiper, chief executive, said he is confident the company will meet expectations in the remaining half a year. The gaming industry reforms proposed in the Gambling Review Report could help the company's sales, he said.
Stanley Leisure Plc (SLY) - Half-Year Report