Investors Corner (Nov. 19-23)

Austrian gaming site betandwin.com had a 297 percent boost in betting turnover to 38.4 million euros from 9.7 million euros during the first nine months of 2001.

The company also saw a substantial increase in registered users during the first three quarters of its fiscal year. During that period 122,006 new users registered, compared to 72,914 in the same quarters last year. Active bettors numbered 42,325 according to betandwin.com's third-quarter report, resulting in an average bet of 16.3 euros per person. As of Sept. 30 the gaming site has 236,222 registered players in all.

And as many online sports books flounder in the economic turbulence caused by the Sept. 11 attacks, betandwin.com reports that although its business was temporarily affected, restructuring and overall recovery of the financial markets could combine to give the year a strong end.

Aqua's Profits Tumble

Aqua Online (JSE: AQU) was riding high at $1 a share three moths ago, but this week African media are reporting that the IT services and software company, which serves the online gaming market, has had a dramatic fall in share price.

The company, which is traded on the Johannesburg Stock Exchange, closed at 24 cents per share today. On Nov. 16, the company released a profit warning that its profits would decrease in the short term because the company had focused its attention on winning a large software distribution contract.

Brent Shahim, Aqua's chief executive, said he blames thedrop in share price on the IT market.

"I think that we've had a cautionary that's been out for a while now, and just generally I think the market has been a bit concerned that nothing had come from that and finally that's been removed," he said. "So I think both those factors have had an impact on share price."

Crypto Shareholders Receive Buy-Back Offer

CryptoLogic Inc. (CRYP) followed up on its stock buy-back last week by mailing all of its shareholders offers to purchase for cash up to one million of the I-gaming software company's shares.

The shares will be sold by way of a Dutch auction, a process by which the seller specifies a minimum price and the number of shares for sale, and the bidders who offer the highest price at the earliest point in the auction pay the amount specified by the lowest bidders. Crypto has engaged in two buy backs this year.

Crypto's normal course issuer bid authorizes it to repurchase up to 650,000 common shares through May 17, 2002. As of Nov. 12, the company has bought 275,000 shares under this plan. The normal course issuer bid will be suspended until the expiration of the substantial issuer bid.

Increases for Multimedia Games' EPS

Multimedia Games Inc. (MGAM) said Wednesday that its fourth quarter earnings reflect a rise in basic and diluted earnings per share to $1.07 and 86 cents respectively, from 48 cents and 46 cents for the same period in 2000.

The figures amount to a 123 percent rise in basic earnings per share and an 87 percent increase in fully diluted earnings per share. The Austin, Texas-based company, which provides gaming systems to American Indian casinos, reports that its fourth-quarter earnings swelled to more than three times their amount one year ago and predicts first-quarter earnings for fiscal 2002 to be even higher based on demand for its electronic bingo systems.

For the fourth quarter, which ended Sept. 30, profits increased to $3.4 million from $1.1 million, representing a gain of 36 cents per share. Revenue rose to $47.8 million from $27.9 million from a year earlier.

Online Gaming Systems to Hold Shareholder Meeting

Online Gaming Systems Ltd. (OGAM.OB) will hold a shareholder meeting at 10 a.m. PST on Dec. 20 at its headquarters in Las Vegas.

Shareholders on record as of Nov. 9 are eligible to vote at the meeting, which will cover the election of five directors and the appointment of an independent accounting firm.

The company's Las Vegas address is 3225 McLeod Drive. Online Gaming Systems develops and markets transaction-based products including webSports, a sports wagering system, and Lotto Magic, a lottery system for private, government and fund raising purposes.

Reports Released

Portal site Bingo.com (BIGR.OB) released third quarter results reflecting slumping revenue to the tune of a 39 percent decreased from the same period during the prior year. Revenue declined to $334,000 from $544,000 in the third quarter of 2000. For the nine months to Sept. 30, however, revenue increased 130 percent to $1,391,000 from $606,000 last year. Bingo.com introduced its pay-for-real skill bingo game on Oct. 26.

World Gaming plc (WGMGY.OB) has changed the end of its fiscal year to Dec. 31, which this year gives the software maker a five-month stub period in which to report results. For the five months ending Sept. 30, World Gaming had revenue of $5.6 million, down 27 percent from $7.6 million in the corresponding period last year. Net loss was $2.77 million compared to $2.5 million last year.

Sports handicapping site Global Sports & Entertainment Inc. (GWIN) reported a three-fold increase in revenue for the nine months ending Sept. 30. Revenue for the company grew to $1.3 million during the first three quarters of 2001, compared to $228,697 during the same time last year.