Market Briefs (July 20-Aug. 2)

BSkyB Reports Revenue Rise

British Sky Broadcasting Group plc (BSY) is reporting a revenue increase of £2,776 million, or 20 percent in its annual results.

Operating profit before goodwill and exceptional items also increased 20 percent to £192 million. The company's net debt fell £165 million to £1,528 million.

In mid July, the Sky Active, one of the company's divisions, launched a new betting and gaming portal called Winzone, which allows consumers to place bets on sports and television shows and take sports-related quizzes.

Tony Ball, chief executive of British Sky Broadcasting, said the group is going to continue to focus on profitable growth in the upcoming year.

"With 6.1 million subscribers and 11 percent growth in revenue per subscriber to £347, we are on track to meet out targets of 7 million subscribers and £400 ARPU," he said. "This has generated strong operating profit growth and positive free cash flow."

Coral Sold to Charterhouse Development

Last week, the third largest betting chain in the United Kingdom was sold for £860 million to Charterhouse Development, a private equity firm.

Rank Group plc (RANKY) and Stanley Leisure (SLY) were contenders to purchase Coral, which operates 870 betting shops and the Eurobet online betting Web site.

Morgan Grenfell Private Equity sold the company after deciding in May not to take it public.

Sportingbet's Fate Questioned by Financial Gambler

United Kingdom newspaper The Independent reported Friday that successful short seller Simon Cawkwell believes the shares of Sportingbet plc (SPO) are about to decrease in value.

The betting group, which this week released its first quarter results, is said to be doing well by its chief executive, Nigel Payne.

One potential obstacle for the company is the fate of online gambling in the United States, where a portion of its punters reside.

World Gaming Takes $1.5 Million Loan

World Gaming plc (WGMGY) said Friday that it has secured a US$1.5 million loan to be used as working capital.

The money will enable the company to address its financial needs until it receives what it expects will be record sports book turnover in the fall.

David Craven, CEO, said the company will also reduce its overhead costs.

"However, we will not touch and are in fact enhancing those resources necessary to meet the needs of our customers during their busiest season," he said.

World Gaming also recently launched the online gaming site, Hot Gold Casino, of its newest licensee, Nova Internet N.V.

Reports Released

Sportingbet plc's results for the first quarter of the financial year ending March 31, 2003, show turnover of £248.1 million, compared with turnover of £111.5 million last year. The group's gross profits are £13.3 million, compared with £3.8 million during the corresponding period last year.