CryptoLogic's Massive Deal
CryptoLogic's (CRYP) share price reached its highest mark in a year after the company announced that it had signed an agreement to supply Betfair with an online poker platform. The terms of the deal have not been disclosed, although CryptoLogic usually sells its online casino software for about $250,000. The largest return for CryptoLogic should come from recurring transaction fees for each bet. Since it could take a few quarters before the site launches and becomes popular, Cryptologic might not begin to experience growth in sales until the end of the year. The company said it expects a net income of $2.3 million to $2.5 million for the fourth quarter, while sales should be around $11 million to $11.5 million. CryptoLogic's share price peaked Jan. 20 when trading closed at $19.50.
Europe's Largest Casino Operator
Europe's biggest casino operator has been created as French hotels and leisure group Accor SA (ACCP.PA) announced it will merge with Groupe Lucien Barriere and investment fund Colony Capital. The newly formed group has revenue of 900 million euros per year and should control about 30 percent of the French casino market with 37 casinos. Colony Capital, which owns resorts in Atlantic City and is buying the Las Vegas Hilton, will give Accor an option to purchase its 15 percent stake between 2008 and 2010.
LegalPlay Merger
Skillpoker.com's operator, LegalPlay Entertainment Inc (OTC:LPLE), and Nevada-based GamblingVision Group Inc. have entered into a letter of intent whereby GamblingVision will merge with a LegalPlay subsidiary. All the rights and obligations of GamblingVision will belong to the LegalPlay subsidiary, and all GamblingVision shares will be converted to shares of LegalPlay's subsidiary. In addition, LegalPlay will issue 6.25 million of common stock to GamblingVision's shareholders. The merger is subject to LegalPlay completing a private placement of $200,000, part of which will go toward operating GamblingVision's business. GamblingVision owns an exclusive worldwide license to develop and market the Coull System platform for gambling-related activities, which was developed and owned by Coull Limited.
Upcoming Reports
Scientific Games Corp. (SGMS) will announce its financial results for the fourth quarter and year ended Dec. 31, 2003 on Feb. 26. The company will hold its conference call the next day at 8:30 (E.S.T.). For more information visit www.scientificgames.com.
Reports Released
Stanley Leisure Organization (SLY.L) reported a 13 percent drop in profit to £21.5 million for the first half year ended Oct. 26, 2003, due mostly to a poor performance at its Crockfords casino, where some high-rollers experienced a lot of luck. The company's betting turnover rose 73 percent to £661 million and operating profit rose 44 percent to £15.6 million.
Stanley Leisure Organization - Half-Year Report