IGT Completes WagerWorks Acquisition
The world's largest slots manufacturer, International Game Technology (IGT), has completed its acquisition of I-gaming software provider WagerWork--a deal that was announced in July.
WagerWorks will continue its policy of not doing business with operators offering play in jurisdictions that don't permit online gambling, so IGT isn't expected to encounter any regulatory problems through the purchase. IGT estimates that the deal should result in additional earnings of 2 cents per share in fiscal 2005 and 2006.
Goldman Sachs Reports on Sportingbet and PartyGaming
A 70-page report from Goldman Sachs on LSE-listed I-gaming companies warns that Sportingbet Plc's (SBT.L) stock is trading 10 percent too high after having risen 273 percent over the past year. Released last week, the report states that poker sites will continue to be more profitable than sports betting and casino sites. Goldman Sachs, therefore, speculates that Sportingbet's growth will lag behind that of PartyGaming (PRTY.L). The investment banking and securities firm gives PartyGaming's stock an "in-line" recommendation and a fair value target of 180p. Oddly enough, the very same day the bank published the report, it announced that it has increased its shareholding in Sportingbet from 4.94 percent to 5.18 percent.
Cassava's Target Date Still Unknown
When will Cassava Enterprises float on the London Stock Exchange? While several publications (including IGN) have reported that the company will go public on Sept. 1, The Independent has reported that the IPO road show will not even begin until the end of September. Cassava, which according to Financial Times made $180 million in profits in 2004, has been silent on the matter.
I-Gaming Public Offerings
The New York Society of Security Analysts and River City Group on Sept. 27 will present I-gaming Public Offerings, a one-day conference spotlighting key public I-gaming companies and opportunities for investors in the growing sector. The conference will feature presentations from software suppliers, operators and payment processing companies that are publicly listed in North America and the United Kingdom. Presenters include Betonsports Plc (BSS.L), FUN Technologies Plc (FUN.L), Las Vegas From Home.com Entertainment, Inc. (LVH.V), Sportingbet Plc (SBT.L) and Trident Gaming Plc (private).
Global Cyber Seeks Funding for Intrastate Solution
Global Cyber--a company that uses a global positioning system to determine the precise location of an online gambler so that regulators with intrastate remote gambling laws can keep gambling within state boundaries--is reportedly in discussions with a Fortune 500 company that has invested a lot of money into online activities over the last six to eight months. Global Cyber reportedly needs another $6 million to complete the software work necessary to make its system compatible with multiple Internet gambling devices and to get an associated equipment license in Nevada.
Reports Released
I-gaming operator Betcorp Limited (BCL.ASX) has reported a phenomenal turnaround for the first half of 2005 as compared to the same period last year when it suffered significant losses resulting in a management shakeup and the sale of its Australia-based Sportsbet operation. The company's profit after tax for the first half of 2005 was AU$2.4 million compared to last year's first-half loss of $2.7 million. The result is "comfortably ahead of internal forecasts," and trading in the first eight weeks of the second half of the year have continued to perform in line with forecasts. Betcorp says its acquisition of Sinsational was a major catalyst for improvement, as staffing was reduced and offices were relocated. The company has also indicated that it is considering a float on the London Stock Exchange. According to a company statement, "In planning the future expansion of Betcorp, the board is considering whether it is in the shareholders' interests for the company to access that market by a dual listing or other means."
Betcorp Limited - Interim Report
Hilton Group Plc (HG.L) has reported rather flat results for the six-month period ended June 30, 2005, with pre-tax profits rising 4 percent to £201.9 million and underlying profit before exceptional gains rising £800,000 to £192 million. Ladbrokes, the company's betting and gaming subsidiary which now brings in two-thirds of Hilton's earnings, saw its profits fall 6.3 percent to £143.6 million due to poor horse racing margins. It is worth noting that last year happened to be a particularly stellar year for Ladbrokes and most other betting companies as Greece became the long-odds champion of the Euro 2004 football tournament. Ladbrokes' revenue from Internet gaming rose during the first half of 2005 by 50 percent, fueled mostly by the popularity of online poker.
Hilton CEO David Michels said there will at some point be a de-merger of Hilton and Ladbrokes, but not for at least another five years. "Will it happen?" Michels asked. "For sure it will, but it will have to be for a reason that means more shareholder value, and no one has come up with that reason yet."
Hilton Group Plc - Interim Report
After filing its report a week late due to the resignation of its auditor, Deloitte, WPT Enterprises has reported a second quarter 2005 loss of US$426,000, or 2 cents per share, reflecting the increased costs of producing its World Poker Tour tournaments and shows. During the same quarter last year the company reported a profit of $887,000, or 6 cents per share. While revenue has risen by 40 percent compared to last year to $6.6 million, cost of revenue has also increased, reaching $4.4 million compared to last year's $2.6 million.
WPT Enterprises - Interim Report