World Gaming Achieves Profitable Q4
World Gaming (WGMGY.OB) experienced its first profitable quarter during the three-month period ending Dec. 31, 2001. The software provider, which last year moved its offices from Antigua to the United Kingdom, posted total fourth quarter revenue of $6.6 million, compared with $6.4 million for the same quarter one year ago.
Net income for the quarter increased over the previous year's, despite moving costs of $438,000. The company reported net income of $536,000, or 2 cents per share, which compares with a net loss of $199,000, or 1 cent per share, for the same quarter last year.
CEO Mike Aymong said the results prove the company's ability to make good on its promises to shareholders despite the industry's recent payment processing woes.
"Bringing sustained profitability to the company has been a major focus since the new management team assumed control," he said. "While we are not finished yet, we are optimistic that we have reached a turning point and are now well positioned to continue delivering profitable growth."
Will Hill to Bid on Coral Eurobet
U.K. bookmaker William Hill has a bid for Coral Eurobet in the works. The company is reportedly planning a bid for Coral to create the largest chain of betting shops in Britain. Ladbrokes is also said to have its eye on the company.
Ladbrokes' Online Wagering Delivers for Hilton
Labrokes' eGaming division posted operating profits of £2 million for 2001, bouncing back from its losses of £10 million in 2000.
Hilton Group plc (HG) released its preliminary financials for the year to Dec. 31 this week. Its subsidiary, Ladbrokes Betting and Gaming, overall took in £2.04 billion in turnover during the year. Its Internet gambling division was responsible for 9 percent of that turnover.
The year 2001 was only the second year of operation for Ladbrokes' online betting sites, but the division had total turnover of £188 million, more than twice its turnover of £68.2 million last year.
The online betting operation has more than 260,000 customers in 160 countries, and by the start of the World Cup at the end of May, will offer its services in 11 languages. Ladbrokes recently launched a sports betting channel on the Sky's interactive digital TV platform.
Scientific Games to Acquire MDI
Scientific Games Corp. (SGM) made its plans known this week to purchase all of the outstanding shares of MDI Entertainment (LTRY.OB) that it doesn't already own.
Shares of MDI, which develops entertainment-based promotions for North American lotteries, will be sold to Scientific Games for $2.10 each. Scientific Games provides products and services to the pari-mutuel gambling and instant ticket lottery businesses.
MDI Chief Executive and President Steve Saferin will escrow about $1.8 million of the group's stock. Saferin will remain CEO and president of MDI, which will operate as a wholly owned subsidiary of Scientific Games.
On Friday, Scientific Games closed at $9.60, near the upper end of its yearlong range of between $1.86 and $10.20.
Tabcorp Stock Reacts to Proposed Gaming Reforms
An announcement from the state of Victoria concerning taking further measures to stop problem gaming last week contributed to a decrease of more than 2 percent in the stock price of Tabcorp Holdings Ltd. (TAH).
Ross Wilson, Tabcorp's managing director, said he does not expect the gaming reform measures to hinder the group's all-around performance.
Victorian Gaming Minister John Pandazopoulos has introduced new steps that will be implemented in January of next year to curb problem gambling. The measures include limiting ATM withdrawals at gaming venues to AU $200 per transaction and prohibiting cash withdrawals from credit accounts at casino ATMs.
365 Corp. and Convergent Break Symphony Talks
U.K.-based 365 Corporation plc (TSF) announced this week that it's no longer in discussions with Convergent Communications to sell Symphony Telecom Ltd.
365 Corp.'s board is continuing to mull strategies regarding Symphony and is putting a restructuring program in place to end the operating losses from Symphony. The company said it will release third-quarter results on March 7.
Reports Released
World Gaming (WGMGY) this week posted gains for its fourth quarter, as well as a decrease in operating expenses, excluding the cost of its trans-Atlantic move. However, for the eight-month period to Dec. 31, revenues decreased 14 percent to $12.1 million.
World Gaming plc (WGMGY.OB) - Fourth Quarter Report
Hilton Group's (HG) preliminary annual results show Ladbrokes' eGaming upping its operating profit from a loss of £10 million in 2000 to gain of £2 million in 2001. Internet gaming now represents 9 percent of Ladbrokes' turnover.
Hilton Group plc (HG) - Preliminary Yearend Report
Rank Group plc (RANKY) posted an increase in earnings per share to 22.5 pence in its preliminary report for the year ended Dec. 31, but its gaming division saw a loss in turnover to £437.1 million from £442.6 million. The U.K.-based company launched its Internet gambling Web site in November of 2001 and is in the process of adding new I-gaming products, some of which will based on its Hard Rock brand.
Rank Group plc (RANKY) - Preliminary Yearend Report
I-gaming software maker dot com Entertainment Group (DCEG.OB) more than doubled its revenue in 2001 to about $3.8 million from about $1.8 million. As reflected in its yearend results, released this week, net income increased 431 percent to $710,153 from $212,248 last year. The company, based in Oakville, Ontario, also increased its licensees to 25 from nine.
dot com Entertainment Group (DCEG.OB) - Yearend Report