Mobile Betting Company Million-2-1 to Float
This is London reports that Million-2-1, a mobile phone gambling company that runs text lotteries for charities and sports gambling games, is about to complete a £2 million pre-flotation shares deal. Until now, Chief Executive Chris Sheffield has financed the company with the £18 million in proceeds he received for the sale of web design company Eunite. Sheffield is now negotiating with Arsenal and its shirt sponsor mmO2 over match-day lotteries for the club. Million-2-1 is expected to be valued at £50 million
Rank Update and Bond
On November 27, Rank Group PLC (RNK.L) released a trading update for the 21 weeks leading up to November 22, claiming that despite a weakening U.S. dollar that has adverse effects on its Deluxe and Hard Rock divisions, the company still expects to perform as well as it did last year. Rank says its Mecca Bingo continues to deliver steady growth and revenue, and Blue Square's new games site, MeccaGames.com has seen encouraging growth while Internet and telephone sports betting are performing in line with expectations.
Rank's casino's, however, are experiencing mixed results, and although the sale of food and drinks is up at its Hard Rock Café chain, merchandising is being hit hard by the recent decline in tourism.
On December 3, Rank strengthened its finances by launching a £150 million bond that is convertible into about 40 million shares or 6.7 percent of Rank's existing equity until January 2009. Rank will use the bond to reduce some of its financing costs and to repay some of its existing debt. The Financial Times says the bond represents another step in the restructuring of Rank that began in 2000. Since then, Rank has sold the Odeon cinema chain, Pinewood film studios, and Butlin's holiday camps.
Betting Exchange Provider Lists on AIM
After having raised £3.7 million in an ordinary share placement priced at 68p per share on Tuesday, CES Software (CES.L) -- a betting exchange operator-- officially satisfied the necessary requirements for listing on the Alternative Investment Market, and on Thursday the company began trading. CES Software, which claims its platform handles nearly 700,000 transactions per minute, develops joint ventures and partnerships that allow other firms to use the exchange, then receives a small commission fee whenever a bet is place with the platform.
Betcorp Turnover $753.7 Million
Australian Internet gambling company Betcorp Ltd. (BCL.AX) is delivering strong results, with turnover of AU$753.7 million for the first three quarters ended September 30. The Australian Financial Review attributes the company's success to its CEO Richard Barker, who is a former Rothschild investment banker. Dick Pratt's Thorney Holdings and the Smorgon family are among some of the company's backers.