Six Months to Figure it Out
Key Tabcorp (ASX:TAH.AX) shareholders have given CEO Matthew Slatter six months to improve the company's performance, reported The Australian on Tuesday. Slatter reportedly met with institutional shareholders--including Investors Mutual, Maple Brown Abbott, Lazard, 42 Capital and Perennial Value--in Sydney on Tuesday, after the company reported slumping interim financials. The news source quoted an anonymous fund manager who owns shares in the company as saying, "The message was given very clearly by all those investors--people want to see results or that's it."
The company announced it had scrapped its expansion plans after first-half profits fell 22 percent to $176 million on "lower earnings from casinos and betting shops."
Merger and acquisition activity and international moves are off the agenda until we get these businesses delivering better results," Slatter said.
The same day, Tabcorp shares fell A$0.64 (3.6 percent) to A$17.11 ($13.58), the company's largest decline in 15 months.
Mixed Results for 24hPoker
2006 saw mixed results for Sweden-based 24hPoker (STO:24HB), as turnover increased 53 percent to $29.6 million while net profit suffered, falling 94 percent. The company said rapid expansion of its business, climbing operating costs within the EU and higher marketing costs contributed to its mixed performance.
24hPoker's 2006 post-tax profits amounted to $1.2 million, although the company suffered losses totaling $13.5 million, including those sustained after the liquidation of its Daydream Software AB business.
Healthy FY '06 for Betsson
Scandinavia-focused operator Betsson (STO:BETS B) on Wednesday released its Q4 and full year financials. The company reported quarterly group revenue rose 100 percent to $19.3 million, while profits before tax rose $4.9 million; annual group revenue, meanwhile, rose 93 percent to $55.4 million, while pre-tax profits for the year totaled $8.1 million, compared with $25.7 million in 2005. The company said prospects for 2007 were promising and added that it would continue to monitor closely legal issues concerning I-gaming throughout the European Union.
The company's I-gaming software arm, Net Entertainment, reported gains in quarterly sales (52 percent) of $4.4 million, with operating profits of $1.7 million. Net Entertainment's full year sales jumped 44 percent to $14.2 million, with operating profits of $58 million.
Betsson's partner in Turkey, however, reported that a bill is currently under review, "which, if accepted, could deteriorate the conditions for offering gaming services from abroad to consumers in Turkey." Roughly 20 percent of Betsson's revenue is derived from Turkey.
Ladbrokes Releases Positive Full Year Financials
U.K.-based bookmaker Ladbrokes (LAD.L) on Thursday released its 2006 financials, reporting earnings ahead of market expectations, saying moreover that talks with operator 888 are continuing. Pretax profit--excluding non-trading items for the year ending in December 2006--totaled £246.5 million ($482.2 million), climbing £14.1 million ($27.5 million) against last year's figure.
The company said, however, that poker gross win dropped 2.7 percent during the period, and cited increased competition from Swedish national lottery operator Svenska Spel--which launched its poker operations in April 2006--as well as a FIFA World Cup-related loss.
Ladbrokes reported that I-gaming-related costs rose 16 percent to £80 million ($157.1 million).
Company CEO Christopher Bell said that its international moves, both in Spain and Italy, are expected to generate an additional £20 million ($39.2 million) to £40 million ($78.5 million) in earnings before interest and taxes per year over the next three to five years.
Frank Rumor Prompts Speculative Buying
Rumor of U.S. Congressman Barney Frank's alleged plans to repeal the Unlawful Internet Gambling Enforcement Act (UIGEA) prompted speculative buying in London-listed PartyGaming (PRTY.L) last week, whose shares on Thursday climbed as high as 45.25 pence. Frank was quoted by several news sources as saying last March that "adults are entitled to do with their money what they want to." Regarding the Frank rumor, one source in Washington, D.C., observed: "Wishful thinking. The bill passed with the support of the majority of Democrats. There might be some opportunities, but outright repeal is a long shot."