Market Briefs - April 17-21, 2006

Chariot Launch Drives Increase in Share Price

Chariot Launch Drives Increase in Share Price

After three years of development, Chariot (UK) Plc (CRT.L) began selling tickets to its new British charities lottery on Monday. The company says the £9.6 million it raised through a float on London's Alternative Investment market was used primarily to fund marketing and promotional costs for the launch of its games. The first draw will take place May 8. The company sold shares at 115p per share through its initial public offering in early February, and shares closed today at 210p.

Chariot's main game will cost £1, and it will allow only a maximum of £2 million ticket sales for each of five separate charity lotteries per week, which translates into a jackpot of £1 million per week for each of the five games. Rollovers are not permitted, so if no player correctly guesses all numbers, a computer will declare the player who came closest the winner. A key area in which Chariotlottery is hoping to separate itself from the National Lottery is its donations to charity. Chariotlottery says its customers will be able to choose which charity receives the proceeds from each of their purchases. Each charity will receive 30p for each £1 ticket purchase, meaning each of the five charities per week will receive £600,000. Chariotlottery will keep 11 pence per each £1 sale as profit, while Camelot, the operator of the National Lottery, takes 0.5p of each £1 as profit.

IQ-Ludorum Acquires Debit Card Solution Firm

eGaming Review reports that I-gaming software provider and payment processor IQ-Ludorum Plc (IQL.L) has acquired online debit card solution firm First Pay in an all-shares deal valued at about £3 million. "The developments today reflect a fundamental shift in IQL's business model towards recurring revenue and sales linked to the dollar volume of transactions," said Mike Muscato, chairman of IQL. "Gaming is expected to continue a double-digit, multi-billion dollar year-over-year growth and IQL is now poised to maximize its participation in this growth." First Pay has arrangement with Antigua-based World Sports Exchange, which is expected to deliver US$50 million in payment processing volume to First Pay over the next three years.

Reporting

Page 3 of the 2005 annual report for online payment processor NETeller Plc (NLR.L) contains a table that boasts the company's remarkable accomplishments in the year, including 90 percent year-on-year growth in average daily receipts to US$3.44 million, 86 percent growth in total year-end customers to 2.32 million, 61 percent growth in average daily sign-ups to 2,930, 108 percent growth in revenue to $172.1 million, 121 growth in gross profit to $126.5 million, 113 percent growth in EBITDA to $103.3 million, 114 percent growth in profit before tax to $97.8 million, 177 percent growth in net profit to $91.5 million and 105 percent growth in earnings per share of $0.76.

The Isle of Man-based company has more than 2.5 million customers in 160 countries and a 24/7 contact center in over 30 languages that handles 100,000 calls per month. NETeller handled more than $7.3 billion in global transactions last year.

NETeller's strategy for 2006 is to deepen by refocusing on merchants and customers by offering compelling value through the introduction of innovative new offerings and to become a truly global business with localized products and services in five new European and Asian markets.