FUN Shareholder's Agree to be Acquired by Liberty Media
On Friday shareholders of skill gaming company Fun Technologies Plc (FUN.L)(FUN.TO) voted unanimously in favor being acquired by American holding company Liberty Media Corporation, which holds ownership interests in some of the world's most recognized brands and companies, including QVC, Encore, Starz, IAC/InterActiveCorp, Expedia and News Corporation. A series of steps to finalize the deal will be initiated on March 7.
Under the agreement, a newly incorporated Canadian subsidiary of Liberty Media, called New Fun, will acquire all of the issued and outstanding ordinary shares in Fun Technologies in exchange for £83.7 million in cash and 32.4 million shares of New Fun. Liberty will fund the cash consideration paid by New Fun by way of a subscription for 33.8 million common shares of New Fun for the aggregate consideration of US$50 million plus approximately £83.7 million payable in cash (the amount was determined as if Liberty has purchased 10.5 million common shares at 267p each plus 23.2 million common shares at 360p each. The price of 360p was established as a 40 percent premium to Fun's stock price in London as of Nov. 18.
When the transaction is complete, Fun will become a wholly owned subsidiary of New Fun; Liberty will own 51 percent of New Fun's common shares and will appoint a majority of the members of New Fun's 11-member board of directors.
BetandWin's Plan to Finance Ongame Acquisition
Austria-based online gambling company BetandWin.com Interactive Entertainment AG (BWIN.VI) has revealed how it intends to finance its acquisition of Ongame e-solutions AB. BetandWin has agreed to pay a purchase price that is equal to 5.37 times Ongame's gross gaming revenues less prices and bonuses (amounting to EUR95 million), which brings the total purchase price to EUR 510 million. BetandWin intends to cover 40 percent of the cost by issuing up to 3,200,000 BetandWin shares at an issue price of EUR 65.19 in return for a non-cash capital contribution. The remaining 60 percent is to be paid by issuing shares valued between EUR 200 to 300 million to Austrian and international shareholders in an accelerated bookbuilding process.
Reporting
WPT Enterprises Inc (WPTE) reports a slight increase in 2005 revenues, which reached US$18.1 million, compared to the previous year's $17.6 million. The increase is the result of significantly higher international and product licensing revenues, but it is offset in part by the delivery of only 18 episodes of the World Poker Tour television show, compared to 32 episodes in 2004. The company's net loss for the year was $5 million, which compares to net earnings of $800,000 in 2004. The decrease is due to additional expenses of $3.6 million associated with the production of the Pro Poker Tour, an additional $2.5 million in marketing expenses associated with online gaming site WPTonline.com, and additional headcount, legal and audit fees incurred during the 2005 period associated with business development, growth and regulatory compliance costs.
WPTE announced two weeks ago that it has hired financial adviser Thomas Weisel Partners to assist in exploring strategic alternatives, including the sale or merger of the business with another entity offering strategic opportunities for growth. President and CEO Steve Lipscomb stated, "Since its launch in 2002, the World Poker Tour has established itself as the premiere televised poker series in the United States and in many international markets. Additionally, we are leveraging the World Poker Tour brand through our real-money gaming website, WPTonline.com, to take advantage of the growing market for online poker. We believe that in order to fully take advantage of the brand we have created in online gaming, we need to seek opportunities to increase our scale and reach. Accordingly, we have hired an advisor to assist us in exploring strategic alternatives with the goal of increasing our presence in online gaming and maximizing shareholder value."
WPT Enterprises Inc (WPTE) - Year-End Report
Canada-based online gaming software developer CryptoLogic Inc (CRYP)(CRP.L)(CRY.TO) reports record full year earnings of US$20 .5 million in 2005 ($1.46 per diluted share) as well as record revenues of $86.3 million. Relative to Q4 2004, CryptoLogic's fourth quarter 2005 revenue rose by 40 percent to reach a record $25.1 million, while earnings rose by 54 percent to a record $5.8 million ($.43 per diluted share), poker fees rose by 92 percent to $7.9 million, and casino fees rose by 20 percent to $15.5 million.
In 2005 more than 65 percent of CryptoLogic's licensees' revenue was derived from international players, up from 60 percent a year ago. The UK and Continental Europe remain the company's largest markets, together accounting form more than 60 percent of licensees' overall revenue. CryptoLogic's report also notes that the company's "$12.5 million investment program to enhance its software and systems, launched in Q3 2004, is now complete."
The company's Board has declared a quarterly dividend of $.07 per share, payable on March 15, 2006 to shareholders on record as of March 8.
CryptoLogic Inc (CRYP)(CRP.L)(CRY.TO) - Year-End Report
Interactive Systems Worldwide Inc (ISWI), developer of the SportXction play-by-play wagering platform, reports revenue of US$30,000 for the three-month period ended December 31st, 2005, as compared to $23,000 during the same period in the prior year. The company says it is in discussions with existing partners, including Sportingbet and SkyBet, as well as new ones regarding implementing a new methodology for the SportXction system. The current system is currently configured as mainly a stand-alone product, and betting opportunities offered by the SportXction system are not integrated with clients' other mainstream offerings. ISWI is now developing an improved technological solution that can be fully integrated into clients' existing betting system while maintaining the consistent look and feel of the clients' sites.
Interactive Systems Worldwide Inc (ISWI) - Quarterly Report
Melbourne-based online gambling company Betcorp Ltd (BCL.AX), which has gaming servers based in Antigua, has announced its final audited results for 2005. The Australian Stock Exchange-listed company says its results reflect a repositioning of Betcorp under new management as a multi-product, online gaming operator. Compared to 2004, the number of Betcorp's active customers grew by 44 percent, fueling an increase in casino revenue to US$6.9 million from $3.7 million and a growth in poker rake to $3.6 million from $200,000. Sports betting accounted for 64 percent of gross revenues in 2005, but according to Chairman David Hudd, "While sportsbetting is currently our largest business, increases in casino and poker revenues mean that our current expectations are that sportsbetting will account for approximately half gross revenue in 2006." Hudd added, "This change will increase the predictability and quality of our earnings." Betcorp's total gross margin improved 42 percent to $29.4 million in 2006 as profit after tax reached $4.3 million (compared to a loss of $8 million in 2004).
Betcorp (BCL.AX) - Yearly Report
Betcorp has also proceeded with its plan to float on the Alternative Investment Market of the London Stock Exchange in mid-March by filing a pre-admission announcement with the exchange. London-based KBC Peel Hunt serves as Betcorp's adviser and broker for the float.
Click here to Betcorp's AIM Pre-Admission Announcement.
Swedish gambling company Cherryforetagen AB (CHERb.ST) has reported a 45 percent increase in group net sales to SEK 452.4 million (US$58 million) for the full year 2005. The group's online gaming unit Cherry Online, carried out through Betsson.com and CasinoEuro.com, contributed SEK 159.1 million ($20 million) in sales, compared to 25 million last year ($3.2 million) while online gambling software and solutions division Net Entertainment contributed 51.9 million ($6.6 million) in revenues, compared to 37.9 million ($4.8 million) last year. Cherry Casino, the group's traditional casino gaming unit, experienced a decrease in revenue over the year to SEK 240.7 million ($30.7 million) from 247.4 million ($31.5 million).
Other noteworthy figures include a 47 percent increase Betsson's active poker players in Q4 2005 compared to Q3 2005, an increase in Betsson's customers from 189,000 to 242,000 in Q4 2005, and profit of SEK 9.2 million ($1.1 million) for Net Entertainment in Q4 2005, an improvement over SEK 5.6 million ($713,000) during the corresponding period of 2004.
Cherry's Board of directors intends to split the company's three distinct divisions--Cherry Online, Net Entertainment and Cherry Casino—into three separate independently listed companies. The three are already independent operations with limited benefits from collaboration, but the board feels that the three branches could be developed more rapidly and stronger on their own. A split would also provide better transparency of the different businesses and allow shareholders to choose their desired risk level and area of operations. The board will present its plan for the division during the first quarter of 2006, and it hopes to complete the division during the second quarter of 2006 at the latest.
Cherryforetagen (CHERb.ST) - Yearly Report
Unibet Group Plc (UNIB.ST), an online gambling company with headquarters in London that is listed on Stockholmsborsen's O-list, has announced its year-end report for 2005, revealing that gross winnings revenue improved to £43.5 million on the year (compared to £24.7 million in 2004) while gross winnings margin on gross turnover improved to 15.5 percent (compared to 11.4 percent in 2004). Profits from operations rose to £19.9 million (from £11.9 million in 2004) for the full year and profit after tax rose to £13.7 million (from £8.9 million in 2004). Unibet's Board proposes a dividend of SEK 2.25 per ordinary share.
Last week Unibet also sold its entire 23 percent holding of ordinary shares in Sweden-based B2B Poker AB to its partner 24hPoker AB for SEK 15 million (£1.1 million), with a further consideration of SEK 7 million (£500,000) being dependable on certain conditions being fulfilled. Unibet will remain a partner within the B2B Poker Network until August 31st, when it will have the option to renew its contract. Unibet CEO Petter Nylander commented, "This is in line with our strategy to downright a horizontal business model with focus on customer acquisitions and retention. Unibet will achieve a better flexibility within the poker network and a better opportunity to influence the services being provided as an important customer instead of an owner."
Unibet Group Plc (UNIB.ST) - Year-End Report