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.
BSkyB's Interactive Betting Revenue Rises
British Sky Broadcasting (BSY) released interim results on Friday that reflect a 150 percent increase, to £91 million from £36.6 million, in revenue from its interactive services.
Interactive television, Internet and telephone betting made up more than half of that revenue in the last half of 2001. The Financial Times of London reported that the sum spent on interactive betting is significant considering that the set-top interface still does not enable users to place bets on-screen while they're watching action in another window.
Schroder Salomon Raises SLY Stock Target
Share prices for Stanley Leisure (SLY) were up Friday as Schroder Salomon Smith Barney raised its price target for the U.K. bookmaker to 400 pence from 350 pence. The broker reiterated its recommendation of "buy, medium risk" for Stanley Leisure and said it was raising the price objective to
reflect optimism about the Budd Report's liberal proposals on gambling regulations.
Schroder Salomon also pointed to evidence from Coral Racing that shows the recycling of cash deducted from wagers in betting shops is taking place sooner than industry analysts had expected.
Genting Stock Lower after Macau Announcement
After being rumored to have been on the short list for a casino license in Macau, Genting saw its stock fall as much as 10 percent after it was announced that the licenses would go to Stanley Ho's Sociadade de Jogos de Macau, Wynn Resorts and Galaxy Casino S.A.
Reuters reported on Friday that Genting ended the day down 5.4 percent at 12.20 ringgit--about $1. Genting, along with Mandalay Resort Group and MGM Mirage, was put on a list of back-up companies that would fill in if any of the first three licensees fell through.
Genting's 55-percent subsidiary, Resorts World, also lost ground, closing on Friday down 2 percent at 7.90 ringgit.
SSP to Help IGCA with GET Merger
Innovative Gaming Corp. of America (IGCA) and SSP Solutions (SSPX) announced an agreement last week in which SSP will exchange $2.5 million worth of its common stock for a convertible preferred security in IGCA.
Innovative Gaming Corp. also said last week that it is purchasing GET USA, the parent company of Gaming and Entertainment Technology, an Australian gaming software company.
The preferred security that SSP is trading stock for will convert into a 9.9 percent interest in IGCA at the same time as IGCA's merger with GET USA. SSP is also promising an additional 900,000 shares as collateral to help ICGA get a loan to complete its restructuring of preferred securities and furnish working capital.
As per the contract, IGCA will become the exclusive reseller of SSP's gaming applications.
Stock Offering for Penn National Gaming
Penn National Gaming (PENN) and a trust connected with the family of its chief executive are selling 3.5 million shares of Penn stock in a common stock offering.
The company is selling 2.5 million shares to repay debt. The remainder of the shares will be sold by the Carlino Family Trust. The president and CEO of Penn National Gaming is Peter Carlino.
The price for the stock offering should be available this week.
Hilton May Get Downgrade from Moody's
Moody's Investors Service is reviewing its rating of Hilton Group (HG) for a possible downgrade of its Baa1long-term senior unsecured debt rating.
Any change in the rating would not exceed a change of one notch downward, Moody's said. The review will concentrate on the extent to which room occupancy rates and revenue per available room have recovered since the Sept. 11 attacks and travel scare. Moody's said it is concerned that business recovery will not be as swift as was originally expected.
Interactive Systems Worldwide Conference Call Feb. 12
Interactive Systems Worldwide (ISWI) will hold a conference call at 4 p.m. EST on Feb. 12 to discuss its fiscal 2002 first quarter results. Callers within the United States may dial 888-881-4892 to participate, and international callers may dial 416-640-4127. To hear a replay of the conference, call 877-289-8525 within the United States or 416-640-1917 internationally. The passcode is 173175.
Magna Entertainment Conference Call Feb. 12
Magna Entertainment Corp. (MIEC) will hold a conference call at 10 a.m. EST on Feb. 12 to go over its fourth quarter results, which were scheduled to be released today. To participate call 1-888-74-1632 10 minutes before the conference starts. International callers may call 1-416-620-2400. The call will also be Webcast at www.magnaentertainment.com. A replay of the call will be accessible until Feb. 19 by calling 1-800-558-5253. The reservation number is 20320216.
Reports Released
Betinternet.com's (BET) interim results show improved results due to a 500 percent increase in the number bets placed online. For the six months ended Nov. 31, 2001, the company's losses shrank to £596,000 from £1.45 million earlier in the year. The bookmaker's Internet bets increased to £14 million, with 76 percent of its wagers being placed on football and 62 percent of all bets being placed from Asia.
Betinternet.com plc (BET) - Half-Year
Report
CryptoLogic (CRYP) is blaming its 10 percent drop in profits on a hacking incident last August. In the software company's fourth quarter results, CryptoLogic said the hack enabled 140 online gamblers to unfairly receive about $1.9 million in winnings. The company is hoping to recover the loss through insurance. For the quarter ended Dec. 31, 2001, earnings were 25 cents a share, or $3.7 million, down from 27 cents a share or $4.1 million.
CryptoLogic (CRYP) - Fourth Quarter Report
Sun International Hotels Ltd. (SIH) released fourth quarter results last week that reflect a net loss of $9.2 million before pre-opening expenses, restructuring costs and the effect of tax benefits
from net loss carry forwards. Loss per share was 34 cents per share compared to recurring earnings per share of 26 cents for the corresponding period last year.
Sun International Hotels Ltd. (SIH) - Fourth Quarter Report