Sportech Reports 6-month Results
U.K.-based leisure company Sportech (SPO.L) last week released its half-year
report, and along with it, a detailed business plan calling for a focus on interactive television and Internet sports betting.
The company's half-year results show a pre-tax loss of £400,000 in the first six months of this year, compared with a profit of £31 million in the same time period last year.
Sportech bought Littlewoods Leisure one year ago, and that company has performed well, making a profit of £9.3 million before amortization and goodwill. Revenue from Littlewoods' pools, betting and lotteries was £91.3 million.
Sportech recently signed a deal that gives Littlewoods exclusive sponsorship of ITV's interactive football coverage. The gaming company will offer ITV Digital's 1.2 million subscribers a variety of betting opportunities. Revenue from digital interactive television is expected to reach £2.8 billion by 2006, and Sportech is positioning itself to be at the head of
that industry.
A Littlewoods online casino is scheduled to launch in October.
European Site Completes Round No. 2 of Financing
A second round of financing recently brought in EURO 1 million for Sport4fun, a free betting tips Web site. The company, founded a year and a half ago, gained EURO 4 million in its first round of financing, which was in April.
The site's investors include VC Paribas Affaires Industrielles; Michael Meyer, chairman of Lycos France; and Lucien Boyer, vice chairman of Havas Advertising Sports.
"The fresh capital will allow us to make our first profits as early as next year," said Nicolas Beraud, CEO of Sport4fun.
Bentley Gets Online Profile
Bentley Communications Corp. (OTC BB: BTLY), operator of online gaming Web
sites and a sub licenser of gaming software, announced this week that it's the subject of an OTC Financial Network profile.
The OTC Financial Network MicroCap Stock Report provides a summary of the company's business plan, industry analysis and an overview of its growth and marketing strategies. The OTC Financial Network is a financial communications firm specializing in small cap companies. It is a division of National Financial Communications Corp.
"[Bentley Communications] has positioned itself to take full advantage of a rapidly growing international industry," said Geoffrey Eiten, president of National Communications Corp. "Bentley's diversified I-gaming offerings and multifold growth strategies position the firm to increase profitability and maximize shareholder value."
The report can be seen at http://www.otcfn.com/btly/4page.html.
Online Casino Helps Drive Rank's Profits
Strong performance from its gambling sections, which include the Hard Rock Hotel's Internet casino, almost doubled profits for Rank Group Plc (RNK.L) in the first six months of this year.
The company's Hard Rock chain, which now features an online casino as part of the Las Vegas Hard Rock Hotel, showed a ten percent increase in operating profit despite a restructuring charge of £1.8 million. In addition, Rank's Mecca bingo halls' operating profits rose to £35 million from £28.2 million. Rank's pre-tax, pre-exceptional profits increased to £82.8 million from £42.1 million.
Sales decreased 5.5 percent to £645.4 million pounds. The company's chief executive said Rank is continuing to improve its financial performance.
"All our businesses have performed well," Mike Smith said, "and the considerable restructuring completed last year means that our post-interest and post-tax earnings are significantly improved."
Rank and Coral Still in Talks About Purchase
Rank is moving ahead with its purchase of Coral, a betting chain owned by Morgan Grenfell Private Equity, The Guardian of London reported on Saturday.
The two companies have yet to decide on a purchase price. According the The Guardian, a source close to the negotiations said Morgan Grenfell would probably not accept the £400 million Rank is prepared to offer.
Mike Smith, Rank's chief executive, was head of Ladbrokes before he started working for Rank and is said to want a bookmaking business. Smith did not comment on the potential purchase. While presenting the company's six-month figures, he said casinos and bookmakers could easily fit inside Rank's Mecca bingo halls.
"A casino could take up as little as 2,000 square feet within the hall, and 60 percent of our premises are big enough to do that," he told The Guardian. "We could have bingo, gaming and betting all under one roof."