Restructured Deal for World Gaming and Sportingbet
Online betting company Sportingbet (SBT.L) and gaming software provider World Gaming Plc (OTC.WGMGY) have restructured the terms of their relationship after a few months of uncertainty as to the future of their arrangements. The companies are initiating a three-year minimum limited liability partnership that includes funding and developing software for NewCan, a newly incorporated British Columbian company owned by Sportingbet. In addition, World Gaming will transfer a 50 percent interest in its gaming software to Sportingbet for $10 million in cash. Sportingbet, which accounted for 80 percent of World Gaming's royalty revenues last year. The company would have saved close to $5 million if the restructured deal had been in effect during the 12 months ended July 31, 2004. Sportingbet says it will reinvest a reasonable portion of its future savings into the development of software. . . . Sportingbet's founder and executive vice chairman, Mark Blandford, purchased 50,000 shares in Sportingbet at 92 pence each today. His holding now amounts to 14,980,173.
Shareholders Convert Scientific Games' Stock
Scientific Games Corporation's (SGMS) largest stockholder, MacAndrews & Forbes, has converted all of its Series A preferred stock into shares of Scientific Games common stock. MacAndrews & Forbes now holds about 25 percent of Scientific Games' outstanding common stock and retains the right to designate certain members of the Scientific Games board and to approve certain corporate transactions. The other holders of Series A convertible preferred stock have also converted their shares into Scientific Games stock.
Reports Coming
British bookmaker William HIll Plc will report its interim results for the first six months ended June 29, 2004 on Sept. 6, 2004.
Online gambling operator UKbetting plc (UKB.L) will announce financial results for the six-month period ended June 30, 2004 on Sept. 17, 2004.
Reports Released
Summus, Inc. (OTC.SUMU) a company that develops wireless applications and solutions--including Phil Hellmuth's Texas Hold'em and Sports Illustrated Swimsuit wallpaper and screensaver products--has released its financial results for the second quarter ended June 30, 2004. Quarterly revenue from wireless applications rose to $1,208,880, which is 53 percent greater than the company's first quarter 2004 wireless applications revenue and 108 percent greater than its second quarter 2003 wireless applications revenue. Total revenues for the first half increased 147 percent to $1,996,849.
Summus, Inc. - Interim Report
Boss Media (BOSS.ST) has published its interim report for the first six months ended June 30, 2004. Net sales for the interim increased 57 percent to $13.9 million, up from $8.9 million over the same period last year, while net sales for the quarter reached $7.5 million, up 65 percent from last year's $4.6 million in the second quarter. Net profit for the interim is up to $3.7 million from $1.1 million. Royalty revenues rose 20 percent during the second quarter and Boss expects that growth to continue for the remainder of the year. Interim earnings per share have risen from $0.02 to $0.07.
Boss Media - Interim Report
Betcorp Ltd. (BCL.AX), the publicly traded Australian parent company of WWTS and other sports books, has released its financial report for the six months ended June 30, 2004. The group, which has achieved much success in the last few years, recorded a consolidated turnover of $525.2 million, an increase of 10 percent over last year's interim turnover of $475.8 million, and an EBITDA loss of $1.98 million, compared to an EBITDA profit of $9.18 million last year. Betcorp's CEO Richard Barker claims the loss is attributed to first quarter difficulties whereby professional U.S. gamblers were able to obtain higher betting limits from Asian agents. Although measures to curb losses from those Asian agents have since been effective, they have also constrained profitability. Meanwhile, Betcorp's stock, which peaked at $0.78 per share in mid January, has since steadily plummeted to a value of $0.24 per share. At World Wide Tele-Sports (WWTS), a bookmaking subsidiary of Betcorp targeting the North American market, vice president Jessica Davis and CEO Simon Noble vacated their positions in the first week of August.
Betcorp Ltd - Interim Report