Ubet2win Posts Significant Pre-Tax Loss for FY 2006
Despite growth in turnover of £1.7 million, online sports book Ubet2win has posted heavy pre-tax losses of £925,000 for the year ended Dec. 31, 2006 amid continuing difficulties with its racecourse business and customer acquisition costs. "It is most disappointing to be reporting such heavy losses during what is still very much a time of development for the company," Ubet2win Chairman Gerry French said in a prepared statement to the market. He continued, saying a wide ranging review of the company's business would be undertaken.
Bill Hill in Line with Expectations
William Hill said Monday that it has been trading in line with management expectations and that the company expects to report first-half earnings before interest and tax that will be slightly greater than those of the same period a year ago. The company is due to announce results for the 26 weeks ended June 26 on Aug. 2.
Party Confident of Full-Year Earnings Prospects
PartyGaming said today that it expects Q2 earnings to match its forecasts, adding that it remains confident on its prospects for full-year earnings.
Magna CEO Steps Down
After only four months of employment, Michael Neuman is stepping down as CEO of Magna Entertainment, taking with him a $1 million bonus. Neuman had been a source of optimism for Magna shareholders, who were counting on him to revive the company through an expansion of its electronic betting and online gambling businesses. Company president Frank Stronach will serve as Interim CEO.
Big Buy for Big Stick
Big Stick Media Corporation has made plans to repurchase more than 3 million of its common shares over the next twelve months. The purchases, made with the consent of the Toronto Stock Exchange, are intended to benefit remaining shareholders by increasing their interest in the company’s assets. This purchase will be the first time the company has purchased its own stock in more than 12 months.
Tatts' Under Investigation by British Authorities
Investment accounts linked to former Tattersall’s executive Duncan Fisher have become the focus of a British investigation on the firm’s lottery license. The investigation focuses on funds, taken from a Tattersall's bonus scheme, that were hidden from a compensation suit in the mid 1990s. The investigation could result in adverse effects for Tattersall’s licensing, as was recently experienced by Greek consortium Intralot.
Dynasty Acquires 3Q1
Dynasty Gaming has signed a letter of intent with 3Q1, the Shanghai-based mahjong operator, to acquire a 10 percent stake in 3Q1 in exchange for an undisclosed cash sum. "This initial purchase of a stake in 3Q1 will provide Dynasty with an opportunity to further its China strategy and to get even closer to China's universe of online mahjong players, a good number of whom are already 3Q1 clients," said Dynasty's chief executive Albert Barbusci.
Gtech Acquires Finsoft
Lottomatica subsidiary Gtech has acquired Finsoft, the London-based sports-betting management solutions provider. "The addition of Finsoft allows us to deliver a complete, integrated sports-betting solution to our customers and prospects," said Lottomatica CEO W. Bruce Turner.
Sportingbet, bwin Negotiations Dissolved
Wednesday saw the amicable dissolution of negotiations between Sportingbet and bwin. The discussions, which date to March of this year, were terminated "mutually and amicably," Sportingbet said. Konrad Sveceny, head of investor relations at Vienna-based bwin, said the companies were not able to agree on conditions because of legal complexities and regulatory changes in the industry. Shares in Sportingbet fell as much as 11 percent following the announcement, though have since recovered, closing down .50p on Friday to 58.00.
Betbrokers Completes Acquisition of Winning Edge
Betbrokers, the independent betting brokerage group, has acquired Las Vegas-based Winning Edge International, a sports information and tipping service, for $6.8 million. Betbrokers said it will fund the acquisition by issuing new shares to current Winning Edge shareholders, adding that the acquisition will allow it to provide detailed information on U.S. sports and offer longer trading hours.
British Media Skeptical of Ladbrokes' Trading Update
The Financial Times and other British media have brought Ladbrokes back to earth, after the company, in a trading update released Thursday, projected windfall operating profits from its phone-betting business--an estimated £45 million. The FT remarked that the company's profits, strengthened this go-around by increased high-roller traffic, are volatile, and that its more dependable retail business remains sluggish. As recently as May, the paper recalled, the company had prefigured softer profits from telephone betting, following a marked decline in high-roller activity during Q1. "But assuming the rich, like ordinary folk, pull in their horns after heavy losses, shareholders are right not to rely on regular pay-outs on this scale," the paper added.