BoS Closes US-Facing Operations
The board of directors of BetonSports on Friday announced that given the temporary restraining order (preventing the company from targeting U.S. bettors) and the related indictment issued by U.S. Attorney Catherine Hanaway, shutting down its U.S.-facing operations in Costa Rica and Antigua is the company's only viable option. The company on Thursday terminated 800 employees in Costa Rica and Antigua and a BoS spokesperson said they plan to refocus their business on other parts of the world, particularly Asia. About 20 percent of the company's business comes from non-American markets. The spokesperson said the employees will not leave immediately. It will be a gradual exit, and the company will pay them within 90 days.
The directors said the company will pay any liabilities to staff and creditors as well as balances due to U.S. customers, although paying the debts will depend on the company's ability to persuade banks and payment processors (some of which have stopped doing business with BoS) to release funds. It will also depend on the company's ability to earn sufficient profits from non-U.S.-facing operations.
BoS has not indicated when, if ever, it intends to resume trading of its shares on the London Stock Exchange's Alternative Investment Market.
Reporting
Internet gaming software provider CryptoLogic Inc. (CRY.TO) has announced record results for the second quarter of 2006 (ending June 30), reporting a 52 percent increase in revenue to $30.4 million, compared to $19.9 million for the same period in 2005. The company attributed better-than-expected performance to strong organic growth in both online poker software fees and online casino software fees, driven by the release of innovative new casino games and the company's expanded slot portfolio. It also noted the highly unusual nature of achieving such results while competing with the World Cup, which took place during the quarter.
CryptoLogic, Inc. - Second Quarter Report
German lotteries and betting company FLUXX AG (ISIN DE0005763502) on Friday released its report for its second quarter and first half of 2006, revealing a revenue increase of 139 percent in the second quarter to EU4.3 million. In the half-year comparison, revenue showed an increase of 110 percent to EU23.5 million. The main driving force behind this growth was the sports betting service "myBet.com," in which Fluxx acquired a 38 percent stake in January. myBet.com saw a sharp rise in new registrations and achieved a gross profit margin of 15 percent in the second quarter, FLUXX said. The company's lottery segment, however, suffered a marked fall in sales for the online lottery services in the second quarter as a result of the 10 percent downturn in the overall lottery market.
FLUXX AG - Second Quarter Report
WPT Enterprises, Inc. (WPTE) announced its financial results for the second quarter ended July 2, 2006, which include a 67 percent year-on-year revenue increase to $11 million, compared to $6.6 million for the same period in 2005. The company attributes the increase to the delivery of 10 episodes of Season IV of the World Poker Tour television series, nine episodes of Season I of the Professional Poker Tour television series, and the finalization of a strategic direction for the company's online gaming business. The company reported net earnings for the quarter of $2.6 million, or $0.12 per fully diluted share, compared to a net loss of $0.4 million, or $0.02 per fully diluted share, in the 2005 period. WPTE had no debt as of July 2, 2006 and total cash, cash equivalents and short-term investments of approximately $37.1 million.
WPTE - Second Quarter Report