Kerkorian to Boost MGM Stake
Kirk Kerkorian said last week that he is planning to increase his stake in Metro-Goldwyn-Mayer Inc. to about 80 percent of the company. Kerkorian is invested in the film studio through his Tracinda Corp., which also owns MGM Mirage (MGG). Tracinda controls about 77 percent of MGM. The purchase, at current prices, could lower Kerkorian's average share cost, which is important because it helps shareholders ascertain the extent of his investment.
Scientific Games IPO Update
Scientific Games Corp.'s (SGMS) underwriters are exercising their option to purchase 1,875,000 shares of class A common stock at a cost of $13,593,750.
On June 26 the company began a public offering of 12.5 million Class A shares for $7.25 per share before the underwriters' discount.
Scientific Games expects a profit of about $98.5 million from the offering.
Gala Undecided on IPO
The Gala Group, which announced plans for an online betting site in May, said July 1 that it has not decided whether it will go public.
A spokesman for Gala said Credit Suisse Private Equity, which has an 80 percent stake in Gala, is satisfied with the company's equity structure.
Gala is headquartered in Nottingham, United Kingdom. Two years ago, it purchased 28 Ladbrokes casinos that it re-introduced as Gala casinos. It operates 166 bingo clubs and has 40 percent of the bingo market share in the United Kingdom.
Sun International Now Kerzner International
Sun International has changed its name to Kerzner International Ltd. as a result of a restructuring of the company's major shareholder, Sun International Investments Ltd. The company's stock symbol has changed to KZL from SIH.
MGM Mirage Conference Call July 24
MGM Mirage (MGG) will hold a conference call via the Internet on July 24 at 11 a.m. EST. The call can be accessed at the company's Web site or at www.companyboardroom.com. On both sites, a replay of the call will be available for 14 days.
Penn National Gaming Conference Call July 25
Penn National Gaming Inc. (PENN) will release its second quarter results and hold a conference call at 7 a.m. EST on July 25 and a Web cast at 10 a.m. EST. To participate in the conference call, dial 212-896-6110 or 415-537-1893. To access the conference via the Web, visit www.companyboardroom.com. A replay of the conference will be available until Aug. 7 by calling 800-633-8284 or 402-977-9140 and entering the access code 20737291. The call can also be accessed at the above Web site for 30 days.
Report Released
Stanley Leisure (SLY) recently released its preliminary report for the period ending April 28, 2002. The British company is reporting a 21 percent increase in turnover to £743 million from £612 million in 2001. In the gaming division, profit before interest and tax is up 27 percent to £33.8 million from £26.7 million last year. Chairman Leonard Steinberg said both the betting and gaming divisions performed above expectations. "The outlook for the group is very bright as we continue to reap the benefits of industry deregulation," he said.
Stanley Leisure (SLY) - Preliminary Yearend Results
Gaming Insight (GIN), in its final yearend results, is reporting a 246 increase in turnover to £13 million over its previous 18 months of trading. Gross operating profits increased 279 percent to £800,000. Operating loss was £19.6 million after the company paid £9.9 million in goodwill and amortization.
Gaming Insight (GIN) - Yearend Results