Rank Issues Profit Warning
U.K.-based Rank Group has warned that annual operating profits could be "significantly" below last year's figures due primarily to new U.K. laws covering smoking and gaming terminals. "While the recent trading difficulties affecting our U.K. retail businesses are worse than we had anticipated, we understand that they are shared by the broader U.K. bingo club and casino markets and are not unique to Rank," it said in a trading update issued today. The company noted that its retail business, comprised of Mecca Bingo and Grosvenor Casinos, had seen a "significant deterioration" in revenue in recent weeks. "Should the disappointing levels of recent weeks' trading continue through to the end of the year . . . group operating profit for the full year would be significantly lower than in 2006," it added. Shares in Rank were down 34p, or 21.38 percent, to 125.
eBet, Octavian Call It Quits
Australia-based eBet, whose gaming technology is employed by the NZ TAB, eBetUSA and Playboy Web sites, has called off its acquisition of British software developer Octavian International after failing to raise the $30 million to required to fund the purchase. eBet said "a change in its capital raising environment, among other things," compelled it to "explore other alternatives." The company added, though, that it has not ruled out the possibility of completing the purchase "at some later date."
Sportech/Vernons Deal Progresses
Football pools operator Sportech has been given the all-clear from the U.K. Competition Commission to proceed with its acquisition of Vernons, giving it nearly 100 percent control of the U.K. market. Sportech Chief Executive Ian Penrose said the company was "delighted" that the lengthy process was at an end, and that it would now focus on concluding negotiations with Ladbrokes. In its final report published Monday, the commission concluded that the acquisition of Vernons "may not be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services."
Record High for GigaMedia
Shares in Taiwan-based GigaMedia hit a multi-year high on Thursday after Bear Stearns Analyst James Rhee gave an "outperform" rating. Rhee said GigaMedia has transformed from a struggling broadband company to an online entertainment provider with reach both in Asia and Europe, adding that company revenue is rising "at a healthy clip." On the NASDAQ, shares in the company rose $2.49, or 13.91 percent, on to $20.39.
Reporting
Boss Media says its interim report will be released on Oct. 26. Take a look back at first- and second-quarter results.