Market Briefs (Dec. 9-13, 2002)

Profitability in the Sights of Playboy Online

Playboy Enterprises Inc. said Tuesday that it expects to double its operating income in 2003.

The company, which has three online betting and gaming Web sites to complement its well known adult publishing fare, said it is looking forward to next year being the first year of profitability for Playboy Online.

"We also project growth in operating profits for our publishing and licensing groups," said Christie Hefner, chairman and CEO. "Our domestic TV business will remain our largest cash generator offsetting changes to our international TV business model resulting from the increased equity position we will be taking in the Playboy TV International joint venture."

The company warned, however, of "changes in or increased regulation of gaming business, which could limit our ability to obtain licenses, and the impact of any new legislation on gaming business generally."

Kerzner Sells 2 Million Ordinary Shares

Bahamas-based Kerzner International Ltd. (KZL) said Friday that 2 million ordinary shares will be offered by an affiliate of Kersaf Investments Ltd. for $19.50 per share. The book-running managers for the deal were Bear, Stearns & Co. and Deutshe Bank Securities.

Youbet.com Reports Positive Operating Cash Flow

Youbet.com Inc. (UBET) announced Dec. 10 that it had positive operating cash flow in October and November.

Chuck Champion, the company's president and CEO, called the announcement "historic."

"This is a historic moment for Youbet.com, as the company achieves positive cash flow for the first time," he said. "Since the new management team was formed last March, we have succeeded in lowering expenses while improving the Youbet service. Through the hard work of each member of the Youbet team, our service continues to be endorsed by our customers as we have experienced daily, weekly and monthly record handle -- while improving the efficiency of our operations."

PBL to Buy Back Shares of Ecorp

Publishing & Broadcasting (PBL) said Dec. 10 that it will position itself to regain control of Ecorp Ltd. PBL announced Tuesday that it will buy the 24 percent of shares in Ecorp that it does not already own.

Minority shareholders will receive 55 cents per share in return for their Ecorp shares, the company said in a statement. Ecorp owns 50 percent of NineMSN. In June 1999, PBL sold its 24 percent of Ecorp for $1.20 per share, a process that netted PBL AU$200 million.

Reports

Gtech Holdings Corp. (GTK) had a third-quarter increase in net income of 52 percent due to increased sales in the United States, new contracts and more efficient operating methods. For the third quarter ending Nov. 23, the West Greenwich, R.I.-based company is reporting net income of $32.8 million or 57 cents per share. That compares to net revenue of $21.6 million or 37 cents per share during the same quarter last year.