Selling a Majority Stake
PacificNet (PacNet), the Asia-facing e-biz solutions provider, has announced plans to sell its 51 percent stake in Guangzhou 3G Information Technology Company to HeySpace International for $6 million. "This strategic sale made business sense and was in line with our new focus on gaming," said PacNet CEO Tony Tong.
No Smoking, No Business
The Times reported Monday that, in anticipation of England's July 2007 smoking ban, Rank Group has put nearly 10 percent of its Mecca bingo clubs estate up for sale. In Scotland, where a ban was introduced last March, revenues at its bingo halls have dropped 17 percent. The company is planning to sell about 10 of its 103 units, the paper says. The sale follows Rank's announcement in February that it would close nine sites before the ban was effected.
Fluxx Reports Q1 Results
Fluxx AG, the Germany-based operator, has released its first quarter results, which show pretax earnings of 1.7 million euros ($2.3 million) against 881,000 euros ($1.19 million) in 2005. The company said its Q1 success was due largely to its sports-betting business, "which was able to make a positive contribution toward pretax profits for the first time." Fluxx also reported revenue jumped 53 percent to 14 million euros ($18.9 million) from 9.2 million euros ($12.4 million) in 2005. The company announced plans to launch sports-betting services in the United Kingdom and is looking for acquisitions in Southern and Eastern Europe.
Click here to view Q1 results from Fluxx AG.
Rehab Generates Sobering Results
The Irish Times on April 30 reported that Rehab, the charity lottery, has generated one million euros per-month and has announced plans to deploy hundreds of I-gaming kiosks across Ireland in an effort to boost turnover. The company that implemented and manages the system, U.S.-based New Media Lottery Services, said in its latest financial results that it has initiated a "full-scale marketing campaign" for Rehab, "which has yielded positive results as evidenced by increasing revenues and a growing base."
Unibet Reports Jump in Pretax Profit
Unibet has released its interim report, which shows a 9 percent jump in pretax profit to £8.8 million ($17.5 million) from £8 million ($15.9 million). The company said its number of active customers has increased to 239,929 from 190,610. "While competition in the Swedish poker market remains tough following the Swedish monopoly's introduction of online poker during 2006, this was more than offset by strong performance elsewhere in the business," said Unibet CEO Peter Nylander.
Click here to view interim results from Unibet.
WPTE Reports 30 Percent Q1 Revenue Loss
World Poker Tour Enterprises (WPTE) has released first quarter results. The company said revenues for the quarter were down 30 percent to $4.5 million from $6.5 million in Q1 2006. It said the loss was primarily a result of it having delivered fewer episodes from its televised poker series. WPTE also reported a net loss of $2.3 million, or $0.11 per fully-diluted share, compared to net income of $3.6 million, or $0.18 per fully-diluted share, in Q1 2006. Highlights included its deal with CryptoLogic, announced in April, to re-launch its online poker room and casino. "The CryptoLogic deal is a positive step forward for our online gaming division as it ensures that starting with day one of our online gaming re-launch there will be ample liquidity available for our customers on a stable and proven platform," said WPTE CEO Steve Lipscomb.
Click here to view Q1 results from WPTE.
Market Chatter Makes Shares Fatter
Shares in Ladbrokes jumped 3.6 percent Wednesday on renewed market talk of a possible bid from private equity group Apax at 440 pence. The bid talk follows similar market chatter around the company's shares late last month. Ladbrokes has yet to comment. The Financial Times also reported on the Apax-Ladbrokes rumors. Traders told the paper Thursday that a leveraged buyout was more likely, given the recent dissolution of talks between Ladbrokes and 888. They added that Ladbrokes would be a good way to play the deregulation of the gambling market in Europe. In 2006, Apax teamed up with Permira to acquire Sisal, the Italian betting and lottery company.
Boss Reports Strong Interim Results
Boss Media reported strong earnings on the release of its interim report. Highlights included an 8 percent increase in sales to $11.9 million from $11.07 million during the previous period. The company said operating profits grew 39 percent from $1.62 million to $2.25 million. Net profit evinced significant growth (117 percent), totaling $2.38 million compared to $1.09 million in 2006.
Click here to view interim results from Boss Media.
Tough First Quarter for Cyrpto
CryptoLogic posted a fall in first-quarter pretax profit with earnings impacted by a $4 million change in its estimated future casino jackpot payouts. Pretax profit totaled $4.1 million compared to $17.6 million in Q1 2006. Revenue was also down 27.5 percent to $19.6 million. Crypto said, however, that it is poised for long-term growth, both in Europe and Asia, with its largest customers on long-term agreements. It added it expects to launch three more customer sites in Q2 2007 and to benefit from modest revenue from its new venture in China. On Wednesday, the company declared its quarterly dividend, $0.12 per common share.
Click here to view first quarter results from CryptoLogic.
24hPoker Hits Bottom
Shares in 24hPoker, the Sweden-based operator, hit their lowest point today in 52 weeks following the release of its first quarter results. The company reported a 16 percent drop in turnover to $7.86 million, with net profit plunging 98 percent to $14,646 from $1.34 million in Q1 2006. The company said that costs associated with its effort to become re-listed on the ordinary Stockholm Stock Exchange had adversely affected its results.
Unibet Board Exercises Buy-Back
After releasing its interim report on Wednesday, Unibet said its board will begin exercising a buy-back mandate received at its AGM on April 25. The buyback was initiated to achieve added value for its shareholders and to give the board increased flexibility with the company's capital structure, it said.
M&A Speculation: Sportingbet
The Telegraph reported that, on Thursday, Sportingbet dropped 0.25p to 60.50 "despite hopes that the online gaming group could soon receive a bid." In March, the company received a preliminary bid approach from bwin.
NetPlay TV Sets Record, Shares Up
The Financial Times said that, on Thursday, NetPlay TV--formerly Stream Group--closed at its highest level for a year. Shares closed up 2.1 percent at 36.75p, after having doubled in two months. The paper said its shares now trade well above housebroker Teather & Greenwood's 28p price target.
William Hill Works to Avert Shareholder Crisis
The Guardian reported Friday that William Hill is working to avert a "potentially damaging shareholder revolt over directors' pay by revamping a bonus scheme for its top executives" a week before its AGM next Thursday. After being warned by leading institutional shareholders that the proposed new share incentive scheme for senior management risked being voted down at its annual meeting, the paper says, the bookmaker announced "changes" in the hope of preventing a "full-scale rebellion." It added that, even with the changes to the performance criteria, the Association of British Insurers still has the company on red alert, which, according to the paper, indicates that there are still concerns for them to consider.