Former Party Exec Gets Richer
Former PartyGaming marketing director Vikrant Bhargava on Thursday cashed in 160 million shares worth an estimated £50 million (US$97.8 million), which comprised just over half of his remaining 7 percent stake in the company.
Global financial services firm UBS valued the shares at 30.5p each--a 3.25 discount to Wednesday's closing price--and demand was reported to have been so great that the orders were filled five minutes before trading began.
Party shares dropped 1.5p (4 percent) following the news to close at 32.25.
CryptoLogic Acquires Parbet
Toronto-based I-gaming software developer CryptoLogic Inc., through its WagerLogic subsidiary, has agreed to pay up to 13 million euros for the poker brand and related assets of Scandinavian online poker room Parbet.com. WagerLogic will license Parbet's poker software, payment processing services, multilingual customer support and services to a private Maltese online gaming company that will operate Parbet.com. WagerLogic will pay 9 million euros for the brand and assets and potentially an additional payment up to 4 million euros, dependent on improved performance of the assets over six months. Parbet assets generate about US$7 million in revenue annually, but CryptoLogic said it expects the licensing arrangement to add about US$2-million to 2007 earnings. Subject to certain closing conditions, the agreements are expected to be completed by Jan. 15, 2007, at which point Parbet players will be transitioned to the WagerLogic poker network and begin enjoying its benefits immediately.
Year of Milestones Expected to Boost FUN Profits
In a trading update released Thursday for the year ending Dec. 31, 2006, Toronto-based skill games provider FUN Technologies Inc. (FUN) reported increased revenues in excess of 80 percent over the company's 2005 revenue. The company said 2006 was a year of milestones with the Liberty Media transaction, the acquisition of WorldWinner and the continued consolidation of companies in the FUN Sports group. Management anticipates its 2007 revenues to be in line with analyst expectations. The company said it will continue to pursue acquisitions that are in line with the company's growth strategy.
LNG Trading Update
Internet sports betting and gaming group Leisure & Gaming PLC (LNG) said it expects trading for the year ended Dec. 31, 2006 to be in line with market expectations. The company, which pulled out of the U.S. after the country banned Internet gambling, said revenues from continuing operations in the second half were substantially above the company's forecasts. On the down side, the company said its sports betting margins were lower than expected due to adverse sports results. The company, which has won 47 licenses in Italy for horse racing and sports betting, added that its net win exceeded its forecasts, but it expects gross profit to fall short as Italian betting tax is charged on revenue rather than on net win.