Fun Technologies Divests Large Stake in betbull
Skill gaming software and technology provider Fun Technologies Plc (FUN.L) has sold off a majority of its equity interest in betbull - the European Betting Exchange Plc (BETB.VI). Traded on the Vienna Stock Exchange, Betbull began in 2004 as a joint venture between Fun Technologies (then called CES Software) and BetandWin.com Interactive Entertainment AG (BWIN.VI). Fun Technologies has demonstrated its desire to concentrate on skill gaming by selling an aggregate of 686,700 ordinary shares of betbull at 7 euros per ordinary share, for an aggregate price of 4.8 million euros. Fun Technologies will continue to hold 413,000 ordinary shares, representing 5.83 percent of the issued and outstanding shares of betbull.
Merger Talks between Rank and William Hill Fail
The CEOs of Rank Group Plc (RNK.L) and William Hill Plc (WMH.L) had reportedly been negotiating a possible all-share merger, but the deal was rejected by William Hill's board of directors because the companies have a different rating on the London Stock Exchange (with Rank's shared viewed as slightly overvalued in a one-for-one swap). If it had gone through, the deal would have created Britain's largest gambling group, composed of William Hill's 2,000 betting shops and strong online operations and Rank's 36 Grosnover casinos, 120 Mecca bingo halls, Blue Square online gaming brand and 100 Hard Rock Cafés in 38 countries.
Lehman Brothers Calls PartyGaming Shares Overbought
U.S. bank Lehman Brothers issued a report on PartyGaming (PRTY.L) last week, stating that the company's shares were overpriced and overbought. The analysts' primary reason for giving PartyGaming's shares a lower valuation is the issue of rising promotional and bonus payouts. According to the report, "Management commented that bonuses were going up and that the 14 percent growth mentioned for October/November would turn into 10 to 12 percent net growth. This would imply that poker bonuses represent anything from 14 percent to 29 percent of gross revenues. In 1H05, reported bonuses accounted for 9 percent of gross revenues; therefore, we believe they are absorbing an increasing proportion of gross revenues." The Lehman Brothers report suggests a target price of 116p for PartyGaming shares, which closed Monday at 140p.
Great Improvement for 24hPoker
Swedish online gaming operator and software provider 24hPoker is reporting operating profit of US$1.3 million for the second quarter of its 2005/2006 financial year--an improvement over last year's $300,000--and a net turnover of $7.9 million--an improvement over last year's $2.4 million. The group operates 24hCasino.com, 24hPoker.com and 24hBet.com and is the parent company of B2B Poker.
Creation of Lottomatica's Replacement almost Complete
Italy's stock market regulator, Consob, has approved the publication of the prospectus for NewGames, the company that will replace lottery and scratch-card operator Lottomatica on the stock exchange. The listing of NewGames will complete the restructuring of parent company De Agostini's games sector that began with the incorporation of FinEuroGames into NewGames, followed by the merger between NewGames and Lottomatica. NewGames will have the same shareholders that Lottomatica had, and De Agostini will have a 55 percent stake.