Market Briefs

2 June 2008

First Quarter Was Biggest on Record, Consultancy Says

Global Betting and Gaming Consultants has said the first quarter of the 2008 calendar year was the largest on record for the Internet gambling industry.

GBGC, a financial consultancy covering the land-based and Internet gambling industries, revealed industry-wide first-quarter gross revenue of $3.8 billion, up 25 percent against the year-ago period.

The figure represents gross revenue generated by commercial betting, gaming and lottery operators, but excludes revenue generated by government-run lotteries. Including government-run lottery revenue, however, $3.8 billion rises significantly -- 18 percent to $4.5 billion.

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NetPlay Full-Yearly Revenue Offset by £4 Million Pre-Tax Loss

NetPlay TV, the interactive television gambling specialist, has revealed full-yearly revenue of £9.41 million, or $18.32 million, on losses before taxes of £4 million.

However, £2.5 million of the loss derived from a single "goodwill impairment," the company said.

The company's Live Roulette business experienced "exceptional growth," it said, with gross bets in December totaling £17.3 million against £3.4 million in December 2006.

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Weekly Statistics

    Listing: Alternative Investment Market, London Stock Exchange

    Low Close: 27 pence (53 cents)

    High Close: 28 pence

    Weekly Change: - 3.5 percent

    Market Capitalization: £33.8 million ($66.4 million)

888 Chairman Says First-Quarter Momentum Continues

Richard Kilsby, the chairman of 888 Holdings, said the company has taken momentum generated by first-quarter growth in net gaming revenue into the second quarter.

In a prepared statement released ahead of the May 21 annual shareholders' meeting, Mr. Kilsby said second-quarter growth is being driven by casino and bingo performance, as well as innovation in game development, integration and partnership deals.

Mr. Kilsby said the company remains confident of "delivering further growth in 2008."

Weekly Statistics

    Listing: Main Market, London Stock Exchange

    Low Close: 142 pence ($2.79)

    High Close: 147 pence

    Weekly Change: + 0.03 percent

    Market Capitalization: £495 million ($973 million)

Parlay Sells Undisclosed Number of 'Non-Core Assets'

In shifting its business toward serving regulated markets exclusively, Parlay Entertainment Inc. has sold an undisclosed number of "non-core assets" for $2.81 million.

Non-core assets, the Toronto-based company said, include licensees that operated in non-regulated jurisdictions. It said it stopped generating loyalty revenue from these assets from May 1, 2008.

In a prepared statement May 22, Parlay said it would no longer license its software to gaming operators operating within non-regulated jurisdictions.

Weekly Statistics

    Listing: Venture Exchange, Toronto Stock Exchange

    Low Close: 68 Canadian cents (67 cents)

    High Close: 70 Canadian cents

    Weekly Change: - 1.4 percent

    Market Capitalization: 9.1 million Canadian dollars ($9.08 million)

London Capital Group Acquires FuturesBetting.com

London Capital Group Holdings, the London-based financial spread betting firm, on May 27 its acquisition of FuturesBetting.com, a Gibraltar-based financial spread betting business, for an initial £200,000, or $395,000.

A further £200,000 will be paid dependant upon the site's performance over a three year period.

Weekly Statistics

    Listing: Alternative Investment Market, London Stock Exchange

    Low Close: 380 pence ($7.46)

    High Close: 385 pence

    Weekly Change: + 1.6 percent

    Market Capitalization: £145.5 million ($286 million)

Neteller Shares Rise on Takeover Talk

Shares in Neteller, the London-based online payment processor, rose sharply on renewed speculation of a takeover bid of around 95 pence per share, two traders told Reuters on May 29.

"It's a strong rumor I've heard from a lot of people," said one of the traders, who wished to remain anonymous.

Neteller shares rose 13 percent to 70 pence, or $1.38, by 9:25 a.m., G.M.T., but closed the day down 5.25 pence to 64.75 pence.

Weekly Statistics

    Listing: Alternative Investment Market, London Stock Exchange

    Low Close: 59.25 pence ($1.18)

    High Close: 64.75 pence

    Weekly Change: + 7.5 percent

    Market Capitalization: £74.9 million ($147.2 million)




Chris Krafcik is the editor of IGamingNews. He lives in St. Louis, Mo.