BSkyB Acquires Majority Shares in 365 Media
British Sky Broadcasting Group (BSkyB) on Jan. 17 announced that its £96 million ($189.2 million) cash offer for online sports content and gaming company 365 Media (365), originally proposed on Dec. 15, 2006, was declared "unconditional as to acceptances," meaning most 365 shareholders have agreed to sell to BSkyB. Under the terms of the agreement, BSkyB will receive a total of 131,404,804 shares in 365 representing approximately 92.7 percent of the existing issued share capital of 365. The company is urging shareholders who have not yet accepted the offer to do so as soon as possible.
ISWI Releases Year End Results
Reporting audited results for its fiscal year ended Sept. 30, 2006, Interactive Systems Worldwide, Inc. (NASDAQ: ISWI) on Jan. 16 said revenues for the year were $111,000 (compared with $162,000 during FY 05). The company attributed the decrease on the discontinuation by the Spanish, Greek, and Turkish affiliates of Sportingbet of the company's SportXction product during the period, though it was partially offset by a new agreement with Latin American gaming company, Hipodromo de Agua Caliente S.A. de C.V. (Caliente). Net loss and net loss per share applicable to common stock (basic and diluted) for FY 06 were $4.7 million and $0.40, respectively (compared with $7.3 million and $0.71, respectively, during FY 05, primarily due to lower interest expense, the beneficial conversion feature associated with the issuances of preferred stock in fiscal 2005, and lower research and development expenses, the company said. As of Sept. 30, 2006, the ISWI had liquid resources totaling $2,182,000, including cash and cash equivalents in the amount of $1,207,000 and investments in the amount of $975,000.
FireOne Sold to Optimal Group
Optimal Group announced on Jan. 15 that its offer for payment processor FireOne, pitched Dec. 22, 2006, has been accepted by FireOne shareholders. FireOne is expected to de-list from the London Stock Exchange (LSE) on Feb. 12, 2007.
Betex Anticipates Lower Numbers
Asia-focused lottery and gaming company Betex said on Jan. 15 that it expects its full-year gross profit to be "slightly below" expectation due to incorrectly priced new products in November. The company added, however, that sales of services from lottery software had been stronger than projected—at £7.9 million ($15.5 million). In a separate release, Betex said that its China-based unit had been authorized by the Chonqqing Welfare Lottery Issuance Center (CWILC) to distribute Shi Shi Cai, a high draw frequency lottery game. The three-year agreement has Betex in receipt of a base commission of seven percent on annual sales up to £3.3 million ($6.4 million), with a further one percent bonus payable in annual lottery sales exceeding the figure. The company also said that it will have to deposit a refundable £67,000 ($131,655) as surety against achieving the sales target, and if this is not met in any year, 20 percent of the risk deposit can be retained by the CWILC.
Betsson Expects Record Highs
Swedish gaming company Betsson (SENAST: BET) has issued preliminary results for the fourth quarter of 2006, showing preliminary revenue of 132.9 million sek ($19.7 million) and operational income of 34.9 million sek ($4.95 million). That is, respectively, 94 percent and 179 percent higher than the same period in 2005. Preliminary results for Betsson Online show an increase in revenues to 110.3 million sek ($15.7 million), an increase of 103 percent. And the number of active customers at Betsson Online increased by 46 percent to 92,600 (compared to 63,300 in the third quarter of 2006). Meanwhile, Swedish gaming software developer Net Entertainment, which develops and licenses online games to Betsson, increased its revenues during the fourth quarter of 2006 by 48 percent to 30.3 million sek ($4.3 million). Betsson will release its year end results on Feb. 21, 2007.