Neteller Targets Europe, Asia, Social Networks after US Withdrawal
London-listed payments processor Neteller said today that it would shift its focus to the European and Asian markets and ride the coattails of the social networking phenomenon, after legal issues forced its well-documented withdrawal from the United States. Click here for the full story.
Troubles Continue for IGH
Interactive Gaming Holdings (IGH), which, last week, suspended trading in its shares on AIM, on Tuesday announced the indefinite suspension of betting operations pending clarification of its financial position. Click here for the full story.
Dynasty Board Director Resigns
Canada-based software developer Dynasty Gaming has announced the resignation of Robert Nihon, who had helmed the company's board since the first of the year. Dynasty chief executive Albert Barbusci said of the resignation: "Robert's decision to resign is the result of the recent death of his father, Robert Nihon Sr., and the urgent need to assume a leadership role in the family's business."
Another Take
Gaming Intelligence Group noted however that sources close to the company said that Nihon's resignation is an indication of "ongoing turmoil at the company." The news source quoted one Dynasty investor as saying that after its deal with 95Joy in May, "Dynasty decided it did not want to be a software company, which led to the resignation of its CIO. Dynasty did nothing with its license to market in China and the tournament was cancelled. Today, we have no software, no revenue, possibly no license, and following the departure of the CFO, little gaming experience within management." Shares in Toronto-listed Dynasty are currently trading at CA $0.19, and have fallen steadily from their 52-week high, CA $1.10, in January.
The Swedish Merger
Swedish poker operators 24hPoker and Epicure Venture on Tuesday signed a letter of intent, whereby the two companies will merge under one brand. The new company, which has yet to be named, will be responsible for the operation 24hPoker.com, Martinspoker.com and Staffpoker.com--all three of which will remain on the 24hNetwork. "We have seen major changes in the attitude of 24hNetwork in the past three to five months," said Martinspoker.com chief executive Claus Nielsen. "We feel that the vision of 24hNetwork to focus on the online gaming solution supplier market along with any plans of international expansion is something that we are certain will benefit our company's future."
GPT in Financial Trouble
Global Payment Technologies (GPT) has released its third-quarter report, which shows a net loss of $1.61 million, or $0.26 per share, down from $1.89 million, or $0.30 per share, in the previous-year period. The company said that its gaming business generated 86 percent of its $3.10 million in sales for the quarter. It also noted that product development and testing had been behind increased operating expenses. "In order for GPT to compete effectively in the casino and vending markets, new products must be developed," said GPT chief executive William McMahon. The company currently carries $1.6 million in debt, which threatens operations as well as its relationship with creditor Laurus Master Fund. Its credit line with Laurus is set to expire this November. "We need to obtain new capital in order to continue the funding of the new product development costs and necessary capital expenditures." With regard to financial uncertainty, GPT joins Interactive Gaming Holdings, whose operation is currently at a standstill as it looks to secure funding via General Capital Venture Finance.
Dynasty Speaks
Dynasty Gaming has issued a shareholder update addressing the marked decline in its share value--which the company chalks up to "the longer-than-anticipated timeframe to achieve current objectives." Contrary to a report carried by Gaming Intelligence Group Tuesday, Dynasty chief executive Albert Barbusci has said the company's relationship with "leading channel partners in China is better than ever," and that "virtually all North American companies have discovered that doing business in China is time intensive."
Labor Likes Dough
The British media reported that the Labor Party, currently in arrears, has accepted £5 million in political donations, of which £150,000 was given by Bet365. Bet365 chief executive John Coates said the sum was given on behalf of his father, Peter, chairman and owner of the company, and was "not connected to his business." Coates also clarified that the donation was not made in connection with the Gambling Act, which, he said, did not contain "a lot of pluses" for the I-gaming industry. The Daily Telegraph observes: "[Prime Minister Gordon Brown] has left himself open to charges of hypocrisy after it emerged that Labor accepted a donation from an online gambling firm days before he killed off plans for a super casino."
Interims from bwin
Austria-based operator bwin has published its interim report, which shows a post-tax profit of 4.3 million euros against a 27.1 million euro loss during the previous-year period. Against figures from H1 2006, gross gaming revenue grew 13 percent to 165 million euros, even after the company in March discontinued its gaming-product offering in Turkey. bwin also reported H1 EBITDA of 30 million euros compared to a 3.8 million euro loss in 2006.
Tabcorp's Full-Year Results 'Unacceptable'
In its preliminary full-year report, Tabcorp chairman Michael Robinson called the company's financial performance "unacceptable," after former CEO Matthew Slatter was sacked and post-tax profits dropped 3.8 percent to A$515.6 million. The company did report however that it paid a final dividend of A$0.47 per share, bringing a total for the year of A$0.94, up 5.6 percent, reflecting what the board said was its confidence that profit growth would return. "Tabcorp has three very strong customer businesses in casinos, wagering and gaming--each leading in the Australian market," said chief executive Elmer Funke Kupper. "We need to run these businesses better and deliver higher returns to our shareholders."
Soft Predictions
Analysts at Euroxx Securities project that Intralot's second-quarter results--scheduled for release on Aug. 29--will be "weak" in comparison to those released a year ago. The firm predicts turnover to fall by 1 percent and net income to drop 24 percent to 23.8 million euros against the previous-year period. Euroxx said it maintains a "positive" view of the company but has placed Intralot stock "under review" pending the publication of the results. Marfin Securities has logged a similar prediction, noting that the expiration of its agreement with OPAP to supply its Stihima product expired at the end of January.