Several dozen publicly held interactive gaming companies are reporting, acquiring, floating, spinning off, merging, de-listing, rising and falling in stock markets all over the world. Every Monday IGN wraps the financial happenings of the Net betting biz from the previous week into a nifty little package just for you.
Park Place Nets $150 Million from Sale of Jupiters Stake
Park Place Entertainment (PPE) parted with $150 million worth of Jupiters Ltd. (JUP) stock this week.
The Las Vegas-based gaming company has reached an agreement with institutional investors. Forty-eight million of the shares sold represent Park Place's 20 percent equity stake in Jupiters. Park Place is also selling its remaining 24 million shares.
The trade is planned to close in the second quarter. Park Place will continue to manage Jupiters' casinos in Queensland, Australia.
Park Place and Commonwealth Superannuation Services were founding shareholders of Jupiters, and had been required by the Queensland government to hold 19.9 percent and 13.3 percent, respectively, of the gaming operator's stock since 1983. Under a new governing framework Queensland has put in place, the founding shareholders do not have to retain their shares.
PBL Report Shows Steady Results
Australia's Publishing and Broadcasting Ltd. (PBL) is showing a normalized operating profit during the first half of its fiscal year. The company, which encompasses ecorp (ECP), had a net profit, after taxes, of AU $160.2 million, lower than the $193 million net profit it had in the corresponding period last year.
James Packer, PBL's executive chairman, said the results were steady, especially for the challenging working environment of the last six months to Dec. 31. He said the results were due to the company's strategically diversified group of businesses.
"Importantly, during the half year we implemented several initiatives aimed at extracting more value from our businesses and which position PBL well to capitalize on an eventual upswing in advertising," Packer said.
Crown, a gaming subsidiary of PBL, showed a decrease in revenue of 5.7 percent to $560.4 million. ecorp, another PBL subsidiary, recently announced it is sharing ownership of CrownGames.com, an online casino, with PBL. ecorp's financials are available via a link at the bottom of the page.
Tabcorp Reports Gains in Q2
Tabcorp Holdings Ltd. (TAH) is reporting a first-half gain in profits of 38 percent to AU $128.1 million. The Victoria-based company said it expects further increases in the second half. Analysts, however, are citing the legislative environment as a reason to maintain skepticism about the company's financial performance.
The company also had a 4.6 percent increase in net operating revenue to $991.7 million. Profit before interest and taxation increased 19.9 percent from last year to $216.3 million.
The company said its Star City Casino in Sydney contributed most of the growth based on its decision to quit the high-roller market.
Penn National Sells Senior Subordinated Notes
Penn National Gaming Co. (PENN), which powers the online horse race wagering site of Playboy Enterprises (PLA), is having a public sale of $175 million in senior subordinated notes.
The company, based in Wyomissing, Pa., will use the proceeds to pay debt. Penn National's fourth quarter results, which were released Feb. 4, show a net income of $5.6 million on revenue of $136 million. The increase is a 50 percent gain from last year's fourth quarter.
Moody's Investors Service rates the company's present senior subordinated debt "B3," which is its highest junk grade. Standard & Poor's gives the company a similar rating, Reuters reported Wednesday.
Will Hill Contemplates IPO Amid New Tax Rules
William Hill's planned IPO is running up against some roadblocks.
The company's Chief Executive, David Harding, has said Cinven Ltd. and CVC Capital Partners Ltd., which bought the company for $1.2 billion three years ago, may hold an initial public offering sometime this year, but that a date has not been set.
However, new taxes and higher charges from racetrack owners for broadcast rights are now delaying the process, Bloomberg reported on Tuesday.
Williams de Broe analyst Richard Finch said the IPO hinges on how well betting operations do under the new tax rules.
"Betting companies are unlikely to be able to go public until they show the benefit from a new tax system and how much it'll cost them to show races in their shops," Finch said.
Power Leisure Report Shows Rise in I-gaming
Irish betting operator Power Leisure reported a 410 percent increase in online betting turnover in its year-end results. Overall, the company had a dip in profits for the fiscal year.
Betting turnover increased by 27 percent to £280.8 million, while the online betting turnover increase resulted in turnover of £21.2 million. The company said its online business is growing according to its expectations.
"The development of all channels has been excellent," Chief Executive Steward Kenny said. "We are very pleased with the development of our online business which we expect to break even over 2003."
World Gaming Conference Call Feb. 28
World Gaming plc (WGMGY.OB) will hold a conference call at 8:30 a.m. EST on Feb. 28. The company's fourth-quarter results will be discussed. To participate, call 1-888-209-3919. A replay of the call will be available until March 7 by calling 1-800-558-5253. The passcode is 20270218. A Webcast of the call will be available World Gaming's Web site as well as www.q1234.com.
Reports Released
Publishing and Broadcasting-owned ecorp posted results showing its EBITDA losses shrinking to AU $2.1 million from $5.3 million during the first half of fiscal 2002. The company's pre-tax operating loss has been reduced by 37 percent to $5.3 million. ecorp and PBL agreed to 50-50 ownership of online gaming venture CrownGames.com this week; ecorp will supply $2.7 million for its portion of the launch costs. Peter Yates, ecorp chairman, said the group is looking for new investment opportunities. "Online gaming and the next generation of MSN services are clearly very good strategic investments to grow shareholder value," he said.
ecorp Ltd. (ECP) - Half-Year Report
Scientific Games Corp. (SGMS) reported an increase in revenue to $108.4 million from $105.5 million for the fourth quarter ended Dec. 31. For fiscal 2001, the company increased its revenue to $440.2 million from $267.7 million in 2002.
Scientific Games Corp. (SGMS) - Year-End Report
I-gaming software maker Boss Media (BOSS) explains in its 2001 yearend report that credit card processing problems in the United States are responsible for the company's 7 percent decrease in net sales. Boss said it expects 2002 to bring better results as well as at least seven new licensees.
Boss Media (BOSS) - Year-End Report