Empire Continues to Attract New Players
Empire Online Limited (EOL.L) has issued a pre-close trading update to inform investors that it expects to report more than US$50 million in profits for the year 2005. The company says net gaming revenue for the fourth quarter of 2005 was $22.5 million, a slight improvement over Q4 2004's $22 million but a decline from Q3 2005's $31.3 million. The quarterly drop in revenue is due to the adverse affect of PartyGaming's decision to segregate players on EmpirePoker from the rest of the players on the massive PartyPoker network. Empire Online is now challenging PartyGaming over the matter through the court system of Gibraltar.
Despite the setback to EmpirePoker, Empire Online was able to gain 49,788 new players during the fourth quarter, and the company says it is now focusing its marketing efforts on its Club Dice and Noble Poker operations. Casino revenues for the fourth quarter reached $11.2 million-- compared to $6 million in Q4 2005 and $8.4 million in Q3 2004-- while poker revenue for the fourth quarter reached $11.3 million-- compared to $16 million in Q4 2004 and $23 million in Q3 2005.
The company is confident of obtaining $37 million in profit from its gaming operations (excluding Empire Poker) in 2006. Richard Carter, an analyst for Empire's broker Numis Securities, stated, "We think today's statement should reassure investors. The lifeblood of Empire's business, new money sign-ups, remains strong at 500 players per day."
Empire's share rose in value by 14 percent to 100p on Tuesday after it released the update.
BetandWin Engaged In More Acquisition Talks
Austria-based online gambling firm BetandWin.com Interactive Entertainment AG is in negotiations to acquire a stake in Premiere Win, the betting channel of German television broadcaster Premiere. Established in August 2005, Premiere Win broadcasts eights hours of horse racing per day and offers wagering on horses and lottery games. Premiere Win has about 30,000 registered users and handled more than US$12 million in betting receipts in 2005. Premiere says the channel should attain break-even EBITDA by the end of 2006.
Neteller Update Shows Growth Continuing
Isle of Man-based online payment processor Neteller Plc (NLR.L) issued a trading update last week ahead of its announcement of preliminary results for the year 2005. The company reports that revenue for the year is likely to be slightly ahead of market expectations, and its broker Cannacord Capital has raised revenue estimates for the year from US$170 million to $173 million.
The number of average daily receipts from customers for the full year 2005 was $3.44 million, which is a 90 percent improvement over the previous year, while the average daily number of new customer sign-ups was 2,930 during 2005, a 61 percent increase over the previous year. Overall, the company gained 1,069,318 new customers during the year, bringing its total to 2,320,670. The company also expects to experience a surge of new customers in 2006 due to the World Cup. "We expect new signings from the people who used to go to high street bookmakers," stated Vice president of communications Andrew Gilchrist.
Neteller has also announced that Ron Martin has taken over as president and CEO of the company. Both positions were previously held by Gord Herman.
Mobile Gaming Firm Raises £650,000
Edinburgh-based mobile gaming technology firm Rapid Mobile Media raised £650,000 through a private equity funding via Pentech Ventures earlier this month. Founded in 2004 by managing director Iain Maddox and Dr. Richard Marshall, the company develops 3G interactive gambling services, including its Mobet product, which powers Betfair's mobile offerings. Rapid Mobile says it will use the proceeds to support existing activities, expand sales channels and develop new technologies. Business services firm Baker Tilly advised Rapid Mobile on the deal.
Reporting
Stanley Leisure Organisation Plc (SLY.L)'s interim results for the 26 weeks ended October 2005 show that pre-tax profit declined to £22.2 million from £24.5 million over the corresponding period a year ago on sales that fell by ten percent to £137 million in the aftermath of the terrorist bombings in London in July. But the group reports good progress for the first nine weeks of its second half of the year, taking into consideration new relaxed admission rules and slot machine limitations under the Gambling Act 2005. With the new rules having taken effect in October, attendance at Stanley casinos has risen by 15.7 percent when compared to the same period last year.
Stanley's interim results also show the final adjustments of the sale of its retail betting operations to William Hill for £504 million. Stanley was able to turn the deal into £338 million in pre-tax profit, £327 million of which was returned to shareholders.
Stanley Leisure Organisation Plc - Interim Report