MGS to Acquire Bowman Holdings
U.K.-based Mobile Gaming Solutions has agreed to acquire Bowman Holdings, which provides online poker and bookmaking services to the European, Asian and South American markets. Financial terms of the deal have not been disclosed.
Crypto Avoids the Worst of the US Mess
According to the Financial Times, CryptoLogic, despite the marked decline (46.5 percent) in quarterly revenue, still managed to avoid "the worst of the industry's pain in abandoning the U.S. market because of a long-held preference for Europe," which accounts for 95 percent of its revenues. The paper also said that Crypto CEO Javaid Aziz is planning to spend the majority of the company's $92 million net cash on Asian acquisitions over the next year.
Betfred Mulls £600 Million Flotation
The Times reported that Betfred, the United Kingdom's fourth-largest bookmaker, has hired NM Rothschild to advise it on a possible £600 million float. The company, founded in 1967, has undergone rapid expansion in recent years, acquiring betting shops at the rate of 75 per year as well as launching its I-gaming offering five years ago. Betfred, which currently owns 700 shops, could use an IPO to "step up the pace of expansion, with the aim of passing 1,000 shops over the next four to five years." The company is also planning a move to follow rivals William Hill and Ladbrokes into Spain.
PKR Deal a Boon for Playtech
The Times also reported that, following news of Playtech's deal with PKR, Numis analyst Richard Carter said the deal could add up to $2 million a year in earnings. Carter subsequently gave a "buy" recommendation to shares in Playtech, which, Monday, were up 19.25p to 324.
Strong Q2 for GigaMedia
Taiwan-based software provider GigaMedia has released second-quarter results, which show revenue up 88 percent to $40.1 million against figures from the previous-year period. The company said that, with regard to its Everest Poker arm, the number of active, depositing players increased by 12 percent from Q1 2007. Consolidated gross profit also saw marked growth, up 101 percent to $31.8 million from $15.8 million during Q2 2006--and 11 percent from the Q1 2007. "We expect even stronger growth in the second half and excellent momentum into 2008," said GigaMedia CEO Arthur Wang.
Party Shares Approach 52-Week Low
Shares in PartyGaming dropped to within .25p of their 52-week low, 25.00p, on Wednesday's close, down 1.25p to 25.75. In a trading update released in early July, the company said--ahead of its first-half report, due out Aug. 29--that it was confident about prospects for 2007. Shortly after Party published the trading update, brokerage Numis Securities released a note to the London Stock Exchange emphasizing the volatility of the shares, especially in relation to the "online gaming regulation news flow" from the United States. This week, press reports regarding Party's "secret meetings" with the U.S. Justice Department (DOJ) suggest that DOJ could attempt to repossess as much as $900 million from the company.
Unibet Reports a Punter's Quarter
Unibet has released what it terms "unsatisfactory" second-quarter results, which show sports-betting margins down after a "punter's quarter." Shares in the company fell by as much as 16 percent after it reported that Q2 profits dropped roughly 60 percent from £5.6 million to £1.7 million. Gross winning revenues also fell to £16.5 million from £18.4 million during the previous-year period. "Our expectation is that this situation will stabilize during the second half of 2007," said Unibet chief executive Peter Nylander. "Management has during the quarter initiated a number of new marketing initiatives, strengthened the regional market leadership and started several process and productivity improvements."
Interims from Boss
Boss Media has released its interim report, which shows sales for the first half up 5 percent to $23.2 million. Royalty revenues were down 7 percent to $16.6 million, it said, though it projected that net sales for the year will remain even with figures from 2006. The company also announced a deal to supply Paddy Power with an online, multi-lingual casino platform.
Q2s from Zone4Play
I-gaming content developer Zone4Play has released its second-quarter report, which shows revenue up 22 percent, $205,598 to $251,132, against figures from the previous year period. Operating loss was down 73 percent, $2.7 million to $778,052, compared to Q2 2006. Acting CEO Uri Levy said that the company has downsized its workforce to 16 employees, and has cut its monthly operating expenses to $150,000. "We are attempting to complete these changes without jeopardizing the company set goals, which are to strengthen our partnership with Two Way Media in our cross-platform, fully-legalized gambling operation in the United Kingdom, as well as to maximize our multiplayer casino tournaments engine solution and our mobile gambling offering," Levy said.
Swedish Stock Slump
Swedish daily The Local reported Thursday that gains on the Stockholmsborsen (Stockholm Stock Exchange) had been negatively impacted--"wiped out"--due to instability in the U.S. mortgage market. Rodney Alfvén, chief analyst at Chevreuz Nordie, told the paper that bankrupt mortgage lenders were "the source of the instability." On Thursday, shares in Betsson were down SEK 4.85, or 8.86 percent, to SEK 49.90, while shares in Unibet were down SEK 7.50, or 3.92 percent, to SEK 184.00.
ISWI Reports Strongest Quarter Since 2002
Interactive Systems Worldwide Inc. (ISWI) has released its second-quarter report, which shows revenue up 735 percent, or $147,000, to $167,000, compared to the previous-year period. Net income for the quarter totaled $10,000, against a net loss of $1.2 million during Q2 2006. The company said the improvement was due primarily to lower expenses, its deals with Sportingbet, Ladbrokes and Hipodrome de Agua Caliente, as well as increased revenue and $370,000 of non-recurring other income. "The company has made substantial improvements in its operations this quarter, increasing its revenue from last quarter by more than 140 percent, and reducing its operating loss by more than $500,000," said ISWI chief executive Bernard Albanese.