A Good Start to Tabcorp's Year
Australian gambling outfit Tabcorp Holdings (TAH.AX) said Thursday that its first quarter revenue for the 2001-2002 year increased by 4.6 percent compared to last year's.
Responsible for the revenue boost were the wagering, gaming and Star City casino sections of the company. Tabcorp's management told shareholders at their annual meeting in Melbourne that the revenue increase combined with a new plan of excluding high-roller gambling should prove to increase profit during the year.
"We have had a very, very good start to the year," said Ross Wilson, managing director. "Assuming we can hold our revenues, we can confidently predict that we should be able to achieve double-digit profit growth this year."
Wilson said last year's net profit would have been AU $4.3 million higher if not for losses to high rollers.
"The volatility was far too great and the profit margin was absolutely insignificant," he said.
Tabcorp shares closed at AU $10.30 on Friday.
A Hard Q3 for MGM Mirage
The Economic downturn and the drop in tourism since the terrorist attacks combined to halve MGM Mirage's (MGG) profits from what they were a year ago.
The casino mammoth this week posted third quarter results that include a net income of $30.1 million before nonrecurring expenses--vastly less than the $73.2 million the company earned in the third quarter of 2000.
Hotel occupancy at MGM's Bellagio resort in Las Vegas was just 57 percent during the last 19 days of the quarter; food and beverage sales at the hotel were down by one third. Table games and slot machines were down by 46 and 20 percent respectively.
CEO Terry Lanni said he blames the terrorist attacks of Sept. 11 for the profit slide, although some of Las Vegas' financial indicators had already begun to fall apart at the beginning of the quarter.
Lanni said the company, which was recently given an Internet gambling license in the Isle of Man, will be back on track throughout the fourth quarter because of the management team's response to the tourism problem.
"(The team) undertook a detailed analysis of our current operations (and) implemented cost-containment strategies which included significant reduction in payroll and a refocusing of several of our marketing programs," Lanni said.
About 6,400--16 percent--of the company's employees have been laid off as a result of the attacks, but 2,000 have been rehired. MGM Mirage stock closed at $22.50 on Friday.
A Spike and a Spill for ecorp Stock
Shares in Publishing and Broadcasting's I-gaming subsidiary rose 25 percent Thursday to a high of about AU 58 cents. Australia's ecorp (ECP.AX) is PBL's interactive division and is involved in two joint ventures, including ninemsn, the country's No. 1 Internet portal. It also sells tickets and operates an online brokerage. ecorp stock lost most of its gains Friday, closing at about AU 48 cents.
Sun International Conference Call
Web wagering newcomer Sun International Hotels Ltd. (SIH) held a conference call Nov. 5 to discuss its third quarter results. A replay of the call can be accessed by calling 877-519-4471 in the United States; international callers may dial 973-341-3080 to hear the replay. The pass code is 2931686. Sun International in September was awarded one of three Internet gambling licenses in new e-gaming hotspot Isle of Man. The Bahamas-based company will operate its Internet casino under the name SunOnline.
In other Sun International news, the company said Monday that it has accelerated the maturity date of a promissory note in the principle amount of $12 million issued by Royale Resorts Holdings Ltd., a subsidiary of Kersaf Investment Ltd. The move is a rection to a default by Royale in making its interest payment of $266,301.37. The payment was due Sept. 30. According to the terms of the agreement, Royale is obligated to immediately pay the outstanding amount of the note--$12 million plus interest.
Reports Released
MDI Entertainment Inc. (MDI: OTC BB) announced record revenue and profits for its third quarter. With revenue over $10 million for the nine-month period ending Sept. 30, this marks the third consecutive quarter of both profitability and record revenue growth for the lottery services company.
British Broadcasting Group plc (BSY.L) announced a 24 percent revenue spike for its first quarter ended Sept. 30. Two weeks ago, BSkyB launched Sky Play, an interactive football television betting game that enables fans at home to place in-game wagers.
In what its executives called a reaction to terrorism, MGM Mirage's (MGG) profits plunged during its third quarter. Earnings for the casino company are down by more than 50 percent from 2000, and earnings before interest, taxes, depreciation and amortization are down to $236.5 million from $336 million.