Market Briefs - Jan 31 - Feb 4, 2005

8 February 2005

IG Index Considers IPO

CVC Capital Partners, which took spread betting firm IG Index off the public market by purchasing it for £143 million in 2003, is appointing financial advisors to consider floating the company again. The company hopes to re-list at double the price of its sale two years ago. Some analysts say that news of IG's considering a float caused shares in IFX Group Plc (IXF.L), Britain's only publicly listed spread betting group, to rise 8p to 114p. Others believe the rise is evidence that the company is about to be taken over by a larger rival. Regardless, the rise of IFX shares brought their value to their highest level since April of last year.

Reports Released

Betcorp Ltd. (BCL.ASX), the parent company of Antigua-based BetWWTS.com, has posted financial results for the fourth quarter of 2004 ended in December. The company's net profit of A$2.3 million is its first profit since 2003. The company had suffered a string of poor quarters in 2004 that resulted in the resignation of three of its four directors. Following the resignations, the company was left in the hands of its largest shareholder, Bill Scott. But since Scott is a fugitive of the United States, Betcorp was ordered by the Northern Territory Licensing Commission to sell Sportsbet, its Australia-based sports wagering business. The sale of Sportsbet and a number of other miscellaneous one-time provisions and write-offs combined for $9.2 million in third quarter 2004 costs and contributed to an $11.4 million net loss. In the fourth quarter of 2004, the company posted EBITDA of 2.3 million, compared to an EBITDA loss of $2.1 million in the previous quarter. The company has improved its sports book margin to 3.4 percent after reporting 2.31 percent last quarter, but the improvement still fell short of the company's expectations, due largely to an NFL season that also hurt many other sports books. Other developments include a 28 percent reduction in overhead costs (due to the closure of Sportsbet, tighter cost disciplines and a re-focus of customer incentives), an 11 percent increase in the number of bets and a 15 percent increase in the number of active players compared to last quarter.

  • Betcorp Ltd - Annual Report

    Betinternet.com Plc's (BET.L) financial results for the half-year interim ended Nov. 28, 2004 show an 80 percent increase in group turnover to £47.06 million, compared to £26.20 million over the same period last year. After recently deciding to implement a new business plan that includes offering customers more tote-betting options on sports by providing direct links to pari-mutuel betting providers across the globe, Betinternet's pari-mutuel activities-which have been re-branded as European Wagering Services-- reported turnover of £32.26 million and gross profit of £0.68 million. Gross profits also rose 32 percent compared to the same period last year to £1.48 million. EBITDA loss has been reduced to £0.18 million from last year's loss of £0.93 million, and company chairman Denham Eke is confident that EBITDA profitability will be attained soon.

  • Betinternet.com Plc - Interim Report

    BETandWIN.com Interactive Entertainment AG's (BWIN.VI) annual report shows that the company continues to expand, with turnover rising to €856 million, more than doubling last year's amount. Net winnings after commission and taxes also doubled in 2004, climbing to €50 million. The company reported a record €314.2 million in turnover for the fourth quarter of 2004, compared to just €125.7 million for the same quarter last year. Net winnings for the fourth quarter also set a new record at €18 million, a 123 percent increase over last year's €8.1 million. The company claims 259,403 active sports betting customers, 180,511 of which are new active customers.

  • BETandWIN.com Interactive Entertainment AG - Annual Report

    Included in British Sky Broadcasting Group Plc (BSY.L)'s report for the interim ended Dec. 31, 2004 is the financial data for SkyBet, the company's betting arm whose revenues have increased by 29.6 percent to £118 million compared to the same period last year. Meanwhile, SkyBet's gross margin has increased to 10 percent, reflecting strong growth in betting and gaming through interactive TV. Overall, BSkyB reported a 10 percent revenue increase to £1.945 billion and an 18 percent rise in profit after tax to £154 million.

  • British Sky Broadcasting Group Plc - Interim Report

    NDS Group Plc (NNDS), a News Corporation company that provides technology solutions for digital pay TV, has posted an 85 percent increase in revenues to US$142 million for the year ended Dec. 31, 2004. The group's operating income increased by 134 percent during the year to US$22 million, and there are now over 51.8 million NDS smart cards in use.

  • NDS Group Plc - Annual Report