Market Briefs (April 22-26)

Power Leisure Turnover Up 68 Percent

Power Leisure's (PWL) 15-week turnover is up 68 percent from the corresponding period last year. Among the company's divisions, turnover increased 42 percent in the company's licensed betting offices, 288 percent in the Dial-a-Bet division and 297 percent in the online gambling section.

The company, known to punters as the bookmaker Paddy Power, said at its annual general meeting Friday that it is looking forward to the World Cup, which begins in late May. While remaining cautious about the overall profitability of the event, Power Leisure said the event will offer significant marketing opportunities.

John Corcoran, the company's board chairman will retire and the end of his term; he will be replaced by Power Leisure CEO Stewart Kenny. The company said it plans to announce a replacement for Kenny shortly.

EssNet Gets Capital Infusion

Danske Venture Partners and IT Provider are teaming up to invest SEK 142.3 million in EssNet, a Stockholm-based company that provides on-line systems and e-channels for lottery and gaming firms.

Hans Vigmostad, CEO and president of EssNet, said the size of the investment indicates great confidence in EssNet's potential for growth.

"We will now be able to expand our business even more and continue to be one of the leading suppliers of on-line systems to lotteries worldwide," he said. "We are already ahead in the development of electronic sales channels for gaming via the Internet, mobile telephony and interactive TV."

The investment is the largest in an unlisted company in Sweden this year, Vigmostad said. Danske Venture Partners is a subsidiary of Danske Bank, the largest bank in Denmark. IT Provider is a venture capital firm that focuses on the Nordic region.

Zetters Buys Financial Spreads

Zetters last week purchased the financial spread-betting business of Sporting Index for £8.7 million.

Graham Wellesley, chief executive of Zetters, said the buy would strengthen the position of his company's spread-betting division, IFX. The chief executive of Sporting Index, Richard Glynn, said the sale of Financial Spreads, the company's financial spread-betting arm, means Sporting Index will be able to concentrate on sports betting.

"Such markets present substantial growth opportunities, especially over an 18-month period which includes three World Cup events," Glynn said. Zetters will partially finance the purchase with a £4.7 million share placing and will fund the rest with cash.

betandwin.com Q1 Turnover Almost Quadruples

The same week as it published its year-end 2001 results, gambling site operator betandwin.com released its first-quarter 2001 financials. The company is reporting turnover of EUR 50.7 million, a 285 percent increase from last year's first-quarter turnover of EUR 13.2 million.

The company's net winnings increased to EUR 2.3 million this quarter, compared with EUR 767,000 during the corresponding time last year. Additionally, betandwin.com received 29,183 new registrations during this year's first quarter. Norbert Teufelberger and Manfred Bodner, co-CEOs, said the company is now turning its gaze toward Asia.

"Following our increased investment in marketing for the Winter Olympic Games in Salt Lake City in February, we are now focusing on the soccer World Cup in Japan and Korea, and on continuing our international expansion," they stated in the company's investment newsletter.

Rank Outlook "Firm"

Rank Group (RANKY) issued a statement this week declaring a positive outlook for the rest of the year. Trade in early 2002 has been good, and the company said the full-year results would be "firm," reported The Independent, a U.K. newspaper. In March Rank launched its online gambling site at www.rank.com.

Rank also operates Grosvenor casinos and Mecca bingo halls, as well as the Hard Rock chain of hotels and restaurants.

Tabcorp Implements Buy-Back

Tabcorp Holdings (TAH) said Tuesday it will embark on an on-market share buy-back program for the purchase of about 18.66 million shares, which is equal to almost 5 percent of the company's issued capital.

Tabcorp will purchase some of the shares if market conditions are appropriate, the company said. Ross Wilson, managing director and CEO, said the company's strong balance sheet makes it possible to enter the buy-back program.

"The company will have substantial flexibility in determining the timing and number of shares to be purchased," Wilson said. "This discretion will only be exercised when market and operating conditions mean that it is in the shareholders' best interests to do so."

Magna Conference Call May 3

Magna Entertainment Corp. (MIEC) will conduct a conference call at 11 a.m. EST May 3 to discuss its first-quarter results. To participate, call 1-888-313-1094 ten minutes before the start of the call. Non-U.S. callers may dial 416-641-6444 to participate. The call will also be Webcast from Magna's Web site. A recording of the call will be available until May 13 by calling 1-800-558-5253. The reservation number is 20525319.

Reports Released

NDS Group plc (NNDS) is reporting operating revenue of £14.6 million, up 44 percent from the previous year. The company, which owns Orbis, an I-gaming software supplier with clients including Ladbrokes, offers a variety of interactive applications for digital television. Its revenue increased by 11 percent to a record £60.1 million.