St. Minver Will Wait and See on Going Public
Gaming Intelligence Group carried a report on St. Minver, the European I-gaming network operator. The news source spoke with chief executive Jim Ryan, who said the company, since before the UIGEA was introduced, has considered going public but has no immediate plans to do so. "Right now, we … continue to watch the market and will take full advantage of any opportunity that arises when the time is right," he said. Ryan also dispelled M&A rumors reported earlier this month by Dagens Industri, the Swedish financial daily, which listed Boss Media as an attractive takeover target for St. Minver. Last month, St. Minver, in conjunction with Boss, partnered with Yahoo to launch its U.K.-facing online poker site.
bwin Seeks Approval for $672 million Capital Increase
At its AGM Tuesday, bwin, the Austria-based operator, said it would seek shareholder approval for a capital increase of up to 16.3 million new shares, which could generate as much as 500 million euros ($672.9 million). According to a report carried by Boerse Express, the Austrian online news service, bwin will use the capital increase to finance the acquisition of London-listed operator Sportingbet. In its first quarter results, released May 15, bwin did not address the "very preliminary" takeover talks it initiated with Sportingbet in March.
Strong Trading for Paddy Power
In a note to the LSE Tuesday, Paddy Power said that, in the twenty weeks to May 15, trading has started very well, backed by "exceptionally favorable" sporting results. The company said it expects operating profits to grow by 27 percent, to the tune of 58 million euros ($78 million) for the year, which exceeds current market forecasts by 8 percent. It also said it anticipates launching Paddypowertrader.com, an online financial spread betting business, during the summer.
Brokerage Firm says Party Shares Will Continue Downward Spiral
A report issued by Arbuthnot Securities, the U.K.-based banking and brokerage firm, suggested shares in PartyGaming would continue their spiral downward. Arbuthnot said that prospects for the London-listed operator are more negative than positive, setting a target price of 15p. The report offered that, among other reasons, shares will suffer because "PartyGaming is at a disadvantage to poker operators taking U.S. bets, European marketing costs are structurally high and could increase, and European regulatory risk remains a threat to both operations and sentiment." The Times reported that dealers connected the decline in share value on May 15 (-4.50p), a two-month low, to the Arbuthnot report.
Betsson Releases Q1 Results, Revenues Jump 123 Percent
Betsson, the Sweden-based operator, released first quarter results, which show a 123 percent jump in revenue to 16.94 million euros ($22.8 million). The company said it achieved an operation profit of 4.94 million euros ($6.64 million), compared to a loss of 163,000 euros ($219,382) during the same period the previous year. It added that total active player numbers increased 35 percent over Q4 2006 to 125,000. Looking forward, the company intends to expand its product range and venture into new, primarily European markets, through organic growth and acquisition. Betsson reiterated its belief that prohibitive legislation in Turkey, passed Feb. 28, 2007, contravenes existing agreements between Turkey and the European Union (EU), to which Turkey is seeking membership.
Click here to view first quarter results from Betsson.
Gigamedia Releases Q1 Results, Net Income Rises 127 Percent
Gigamedia, the Taiwan-based software provider, released first quarter results, which show a 127 percent increase in consolidated net income to $8.5 million against figures from Q1 2006. The company's success during the quarter was spurred by its Everest Poker operation, which generated revenues of $19.1 million. It added that active, real-money players totaled 138,000, 68,000 of whom were added during the quarter. "GigaMedia continued to execute well in the first quarter--led again by our Everest Poker software which grew both revenue and player numbers by about 50% over Q4," said GigaMedia chief executive Arthur Wang.
Click here to view first quarter results from Gigamedia.
Rank Shares Jump Following Merrill Lynch 'Buy' Listing
The Times carried a brief Wednesday on Rank Group, whose shares, following a "buy" listing by Merrill Lynch, jumped 8.25p to 203.25 Tuesday. The paper said that the potential abolition of value added tax (VAT) for bingo operations and the introduction of new gambling machines could push shares back toward 220p.
Redbet Releases First Quarter Results, Revenues Increase 284 Percent
Redbet Holding AB, the Sweden-based online operator, released first quarter results, which show a 284 increase in revenue to 1.05 million euros ($1.4 million) against figures from Q1 2006. Net profits for the quarter totaled 29,300 euros ($39,372) compared to losses totaling 70,700 euros ($94,978) during the previous period. Geared toward improving earnings, the company said it continues to focus on the acquisition of gaming companies in Central and Eastern Europe.
Click here to view first quarter results from Redbet Holdings AB.
CYOP Expects to De-List from NASD OTC
CYOP Systems International, the online casino software provider, said it expects to de-listed from the NASD OTC exchange, due to its inability to pay vendors. The company also announced the resignation of directors Jorge Andrade and Randy Peterson--"Andrade and Peterson did not resign as a result of any disagreement relating to our operations, policies or practices," CYOP said in a prepared statement to its shareholders. "A raft of issues has made the turnaround of CYOP extremely difficult to achieve," said chief executive Patrick Smyth. "These included the Unlawful Internet Gambling Enforcement Act of 2006, which hampered efforts to build new business, as well as costing the company clients."
IGH Secures $1.2 Million Credit Facility With GCVF
Interactive Gaming Holdings (IGH), the London-listed operator, has secured a £600,000 ($1.2 million) credit facility with General Capital Venture Finance Ltd. (GCVF) to fund IGH's working capital requirements. The loan carries an interest rate of 1.25 percent per month, and is secured on the assets and monies of IGH. IGH has also issued share warrants giving GCVF the right to acquire 12,000,000 ordinary shares with an exercise option 2.5p per share. IGH chairman Thomas Taule said: "We're pleased to announce the completion of this fundraising. GCVF have shown real confidence in the company and we look forward to a lasting beneficial relationship with them."
Fluxx to Vie For Majority Stake in Lotto Rheinland-Pflasz GmbH
Fluxx AG, the Germany-based operator, has announced plans to acquire a majority stake in Lotto Rheinland-Pfalz GmbH. Fluxx is competing with the government for the tender. "We are convinced that we will reach an agreement with the proprietors, because our offer is financially much more attractive that the one made by the state," said management board spokesman Rainer Jacken. During FY 2006, Lotto Rheinland generated revenues totaling 461 million euros ($620 million).
Sportech's Acquisition of Vernons to Continue
Sportech said it continues to pursue its proposed acquisition of rival Vernons, despite the U.K. Office of Fair Trading's decision to refer to merger to the Competition Commission. The commission is expected to issue its decision by Oct. 17, it said. It added that Ladbrokes, Vernons' parent company, has supported its decision to carry on with the deal.
PacNet Reports Profitable First Quarter
PacificNet, the Asia-facing gaming company, has released first quarter results, which show a 38.9 percent revenue increase to $9.26 million from the same period last year. The company posed a net profit of $308,000, or $0.03 per basic share. "We are delighted to report our turnaround and first profitable quarter since our venture into the gaming technology business," said PacNet chief executive Tony Tong. "As we announced during the last two conference calls, we have initiated a rapid business transformation away from our low-margin telecom business and into the new high-margin gaming business."
Click here to view first quarter results from PacificNet.