Monopolist's Turnover Lags
WestLotto, one of Germany's largest state lotteries, saw its market share reduced by 2 percent to 1.77 billion euros ($2.37 billion) in 2006. According to German national daily Die Welt, the operator's Oddset sports-betting service saw turnover fall 20 percent to 84.2 million euros ($112.8 million) over the full-year period. The company said advertising restrictions in the country, as well as competition from non-domestic, private operators, significantly contributed to the loss.
Inspired Releases Interims, Revenue Jumps 29 Percent
Inspired Gaming has released interim results, which show a 29 percent increase in revenues to £34.6 million ($69.2 million) for the six months ending April 14, 2007. EBITDA was up 42 percent to £8.4 million ($16.8 million) while net debt for the period, £51.6 million ($103.2 million), was down from £72.2 million ($144.4 million) at the end of FY 06. The company said that, in March, it had received a $29.4 million strategic investment by Iceland-based investment company FL Group. Operational highlights included deals with Codere and Betfred as well as the creation of an international sales division.
Deutsche Bank Note Grabs Investors', Industry's Attention
The Independent reported on Monday's news regarding PartyGaming, whose shares were resuscitated by a favorable research note from Deutsche Bank. "After a couple of months of a steadily retreating share price . . . PartyGaming was boosted by the broker Deutsche Bank as it upgraded its stance on the shares from 'neutral' to 'buy,' sending them 1p better to 40," the paper says. "It told clients that uncertainty surrounding [Party's] strategy has now been clarified and there could be room for further upside to its revise 45p-per-share target price." The Deutsche Bank note also suggested that given Party's present share-price levels, the company could become an "easily palatable bolt-on" contingent on the outcome of its discussions with the U.S. Justice Department. The note adds that large, U.S.-based gaming companies like Las Vegas Sands and MGM may well consider Party an attractive acquisition target. Google and eBay were also included on the list of potential suitors.
Forbes Gives Glu the Nod
On Wednesday, Forbes carried a report on up-and-coming mobile gaming publisher Glu. Forbes associate editor Nikhil Hutheesing called shares in the company--which began trading on the NASDAQ March 21--"attractive," given the outlook for strong growth in the market and the "smart steps that Glu is taking to expand its business." Even after reporting a 94 percent increase in first-quarter consolidated revenue, however, investors should consider a couple of risks, Hutheesing wrote. "One: More than 50 percent of Glu's revenue in 2006 came from licenses that expire in 2006," he said. "While I expect Glu will be able to renew those licenses, any fallout will hurt the bottom line. Two: As a percentage of sales, operating expenses were close to 70 percent, with R&D representing approximately half of that. While this could beneficial in the long run, it could delay Glu's ability to achieve profitability in the near term."
It's Good to be Mitch
PartyGaming CEO Mitch Garber, in accordance with his planned sale program announced in March, today sold 4,366,666 shares at 39.07 pence per share. Garber has a remaining share holding of over 4.5 million shares. The company also said Garber gifted 300,000 shares to its employee benefit trust, all of which he recommended be distributed among "employees demonstrating an outstanding commitment to helping the company achieve its objectives in 2007 or who come up with exemplary entrepreneurial ideas for [its] business."
Greek Merger in the Works?
Greek horse-betting organization ODIE is reportedly in talks with state lottery operator OPAP about cooperation on a number of projects, including a new racecourse in northern Greece. Although such an alliance has been considered before, high debts on the part of ODIE have scuttled any sort of merger. Analysts from Eurobank believe that an alliance could lead to "exciting synergies," but that it would also require significant investment.
Fun Receives Share Proposal from Liberty
Fun Technologies has received a proposal from majority shareholder Liberty Media to purchase (by cash) any and all outstanding common Fun shares at 1.635 pence ($3.50) per share. Fun has established an independent committee to review the offer, and will make its recommendation to shareholders in due course.