Crypto Stock Tumbles
Internet gambling software maker CryptoLogic Inc. (CRYP) saw its stock fall Friday as fears mounted that the United States government might introduce new laws against Internet gambling.
On Friday afternoon the company's stock was trading at a six-month low of CAD $17.85, down $3.15, on the Toronto Stock Exchange. Reuters reported that it was the second day of poor trading for CryptoLogic, which saw its stock fall $3 on Thursday.
An anti-terrorism bill that was introduced in the U.S. House of Representatives aims to make it impossible for U.S. citizens to use credit cards, debit cards and checks to pay for Internet gambling. Overall, the bill seeks to curtail terrorists' money laundering activities.
Analysts told Reuters that while the bill may pass, it's uncertain whether the provisions against Internet gambling will remain.
"Because it's part of the financial anti-terrorism bill which has strong support, we don't know how fast it will go through the various subcommittees it has to go through," said Rob Klein of Thomson Kernaghan & Co. in Toronto.
MGM Mirage Lowers Third Quarter Estimates
On Monday new Internet gambling face MGM Mirage Inc. (MGG) warned of significantly lower third quarter earnings caused by the tourism slowdown since the Sept. 11 terrorist attacks.
Last month MGM Mirage became the first land-based casino operator in the United States to be awarded an offshore Internet gambling license. The Isle of Man gave out three licenses in September, to MGM Mirage, Sun International and Littlewoods Leisure.
"Until Sept. 11 we were on our way to another very strong quarter," Jim Murren, MGM Mirage's president and chief financial officer said. "Obviously the tragic events have meaningfully disrupted the travel and resort industries."
MGM Mirage's stock closed Friday at US $23.71. Its 52-week range is from $16.19 to $36.38.
The Associated Press reported that the Federal Aviation Administration's grounding of commercial air traffic for two days following the attacks had the largest impact on the company's earnings.
The company, which owns more Las Vegas Strip resorts than any other casino operator, has laid off about 10 percent of its workforce.
"We have implemented numerous initiatives to improve revenues and reduce costs to manage our business in the current environment," Murren said.
No PBL Buyout for ecorp
Publishing & Broadcasting Ltd. (PBL.ASX), an Australian broadcaster, said Thursday that it does not plan to increase its stake in its subsidiary ecorp Ltd. (ECP.ASX).
Internet investment and ticketing company ecorp is 80 percent owned by PBL. Its shares increased by 25 percent after speculation early Thursday that PBL might buy the 20 percent of ecorp that it does not own.
The company also got a boost from renewed speculation that it was considering selling its 50 percent stake in the Australian operations of Charles Schwab & Co., fund managers reported Thursday.
ecorp closed Friday at about 0.49, near the low end of its yearlong range of 0.22 to 1.64.
Management Shakeup at Sportingbet.com
Sportingbet.com's (SBT.L) founder stepped down as chief executive on Thursday but will stay with the British online bookmaker as its vice chairman.
Mark Blandford started the company in 1998 and saw it through a variety of acquisitions that have increased the company's turnover from less than £1 million in 1998 to £325 million in 2000.
Sportingbet.com's stock closed at 94 pence on Friday; it sold a volume of 337,500. This year the stock's price has ranged from 70 to 179.50 pence.
Nigel Payne, the company's finance director, will be the new CEO. Payne joined Sportingbet in June 2000 and had previously worked for Polestar Magazines.
Reports Released
Sportingbet.com (SBT.L) posted its 2001 annual report to its Web site on Friday.
Sportingbet.com (SBT.L) - 2001 Annual Report