Buoyant Playtech Says Q4 Trading is Strong
In a trading update Monday, Playtech said it was confident it would meet fourth-quarter forecasts and that revenues had grown significantly toward the end of 2007.
The London-listed software supplier said moreover that it "continues to enjoy buoyant trading," and that fourth-quarter trading in particular had thus far "exceeded expectations."
Ahead of the company's full-year report, due out March 4, Bloomberg estimates a pre-tax profit of $68.8 million, with sales at $102.8 million.
Playtech added that former Chief Executive Avigur Zmora -- currently the group's executive vice chairman -- is to become a non-executive director.
All Resolutions Passed
Betbrokers said Monday that all resolutions put to shareholders at its AGM were duly passed. In other news from the financial wires, Neteller said that Franklin Templeton International LLC -- a San Francisco, Calif.-based investment group -- as of Jan. 4 holds approximately 5.07 percent of the company's issued share capital.
Cenkos CEO Looks to Float the Tote
The head of a London-based securities firm has reportedly made an offer to purchase and float the Tote simultaneously, possibly putting an end to the tempestuous sale of the state-owned betting agency.
Andy Stewart, CEO of Cenkos Securities and a racehorse owner, announced on Sunday an aggressive plan to use an accelerated initial public offering, allowing them to take ownership of the Tote before quickly floating it on London's AIM junior market, but said he would leave the government with an unspecified "large" stake.
Stewart told the Independent that based on the numbers he had run, the sale would be valued at around £260 million.
A British racing industry consortium, consisting of the Race Course Association, the Racehorse Owners Association and the Racecourse Holdings trust, in January 2007 put in a £400 million bid, but reduced its offer to £320 million in September, due to changing market conditions, according to reports.
Media reports last month said that the government had finally rejected the consortium's bid and would announce that the Tote would be up for sale on the open market.
A spokesperson for the Department of Culture Media and Sport, however, said the government was still considering the consortium bid and declined comment on Stewart's offer.
"No decision has been made," she said. "Our focus is on the consortium bid."
Expanding and Diversifying
Malaysian online daily TheEdgeDaily reported that Genting International's venture into online gambling "highlights the company's proactive stance in diversifying and expanding its income base." Analysts with OSK Research reportedly said that although the move was not expected to contribute significantly to the group, it was critical to sustaining long-term earnings momentum.
Ho's January IPO Could Fetch $1 Billion
Sociedade de Jogos de Macau (SJM), founded by casino tycoon Stanley Ho, plans to issue 1.25 billion new shares, hoping to raise $1 billion in an IPO at the end of this month.
Among the new shares, 85 percent will be sold to institutional investors, and 5 percent will be reserved for employees, leaving 10 percent available to the general public.
SJM held the monopoly on casinos in Macau for 40 years until 2002 when the government opened up licensing to foreign operators. SJM still runs the majority of casinos in the jurisdiction, owning 17 of the 28 properties on the island.
Deutsche Bank has reportedly been selected to manager the global offering to institutional investors, which will take place on Jan. 15, the public offering on Jan. 21 and the debut of trading scheduled for Feb. 1, according to the South China Morning Post.
SJM said in December that it would be launching an international tender for the construction of a new hotel and casino in the plot of the 38-year-old Hotel Lisboa, Ho's flagship casino. SJM is aiming for work to begin in 2009 and end in 2012.
Record Month for ISWI
Interactive Systems Worldwide subsidiary Global Interactive Gaming recorded roughly £1.2 million in turnover during December 2007, besting figures from the previous year period (£146,000) by 720 percent. GIG operates the SportXction play-by-play live wagering system, whose licensees include Caliente and Ladbrokes. "We are very pleased with the wagering volume from our operations in the United Kingdom," said ISWI Chief Executive Bernard Albanese. " . . . turnover this December equaled the third-best month we've ever recorded."
William Hill Shares Down on Trading Update
In a note to the London Stock Exchange Thursday, William Hill reported a strong performance in its retail business but said the performance of its Internet unit had continued to be "disappointing."
The company projected full-year pre-tax earnings of £285 million, though the news was not enough to rally its sluggish shares, which have lost roughly 40 percent of their value since hitting a 52-week high in October. Shares were down 32.25p, or 7.44 percent, to 401.00 -- a 52-week low.
Regarding its Internet sportsbook, the company said that following a November 2007 review, it had decided to terminate its proprietary NextGen technology program. In place of NextGen, it said it planned to implement an externally-developed, third-party solution. Industry media have that Orbis could be the suitor, although William Hill has refused to address the speculation.
Currently, William Hill's Internet unit accounts for 12 percent of its total gross win.
The new software platform is expected to be implemented by the end of the year, it said, adding that the decision would result in a non-cash impairment charge of approximately £22 million in the 2007 results, with restructuring charges of approximately £4 million in 2008.
It said its search for a new chief executive was progressing and it would update the market when appropriate. In September 2007, former Chief Executive David Harding left and was replaced by stand-in Charles Scott, the group's chairman.
Paddy Shares Dip to March 2007 Low
Bloomberg reported Thursday that Paddy Power fell to a 10-month low in Dublin trading after Citigroup lowered its recommendation on Paddy shares to "sell" from "hold," citing a "deteriorating" Irish economy. Shares fell 0.95 euros, or 4.9 percent, to 18.50 euros -- their lowest price since March 6, 2007. The report says that Ireland's economy, which has expanded three times the EEA average in the past decade, is "poised for its slowest growth in 15 years as a building boom cools." Citigroup did however suggest that Paddy has a "relatively" high rating against its U.K. peers. In other Paddy Power news, the operator today changed its take on the U.S. presidential candidate race, installing Sen. Hillary Clinton, D-N.Y., as the favorite to become the Democratic nominee at odds of 8-15.
Turbulent 2007 Gets Better for Boss
Sweden-based software provider Boss Media has released a trading update saying the end of a "turbulent" 2007 had been stronger than anticipated. The company's preliminary year-end report for 2007 will be released prior to the opening of the Stockholm Stock Exchange on Tuesday, Jan. 22.
Neteller 'Pleased' with 2007 Performance
Neteller said Friday that fourth-quarter trading has met management expectations, and projected that its full-year results would meet market expectations.
Concerning its ongoing settlement with the U.S. Justice Department, it said it would make the final payment of $38.25 million on Jan. 16, completing its financial obligations to the government as laid out in its deferred prosecution agreement.
In July, the company agreed to disgorge $136 million to the United States. Neteller said initially that the sum included the estimated $60 million seized in January by the U.S. Attorney's Office for the Southern District of New York (USAO); but the company said today that $57.7 million -- not $60 million -- was seized by the USAO.
As part of its deal with the USAO, Neteller had also agreed to return approximately $94 million in funds owed to its U.S. customers. According to this morning's release, the group has repaid roughly $81 million. Any unpaid amounts, it said, are being held in trust accounts with the group's bank. U.S. customers have until Jan. 26, 2008 to withdraw their funds via the Neteller Web site.
To date, Neteller and BetonSports are the only major, London-listed I-gaming businesses to settle with DOJ. PartyGaming and 888, also listed on the LSE, voluntarily entered into talks with the DOJ last spring regarding their activities stateside prior to the October 2006 enactment of the UIGEA.
Looking ahead, the company said it has been working to revitalize its consumer brand, and has re-launched the brand to "appeal directly to the group's core demographic, with an offer of a suite of lifestyle financial services for the online generation."
Neteller also said that it planned to announce details during the first quarter regarding a new suite of e-commerce applications for both gaming and non-gaming merchants.
"Considering the significant challenges that our company has face during the past year, I am pleased with the performance of the business in 2007 and I am excited about the prospects for 2008," said Neteller Chief Executive Ron Martin.
Neteller's full-year results are due to be released on March 11.