Market Briefs (July 22-26)

Paddy Power Reports Turnover Increase

Paddy Power (PWL) is reporting a 55 percent increase in turnover to EUR319.1 million from EUR206.4 million in its interim results for the six months to June 30.

The company said it will continue to market in the United Kingdom and expand its betting offices and telephone and online operations.

Operating profits amounted to EUR9.1 million, compared to EUR4 million last year, a 127 percent increase. The dividend per share increased as well, to EUR0.034 compared with EUR0.017 last year.

Deputy Chief Executive and Finance Director Ross Ivers said the period has seen "excellent turnover growth on the back of an interrupted sporting calendar in contrast to 2001."

"Gross margins have been strong across the Betting Office estate, which has made a significant contribution to operating profits, while the continued turnover growth at good margin in the On-line division has significantly improved its performance," he said.

IG Group Profits Down

Spread-betting firm IG Group is saying that lucky bettors are responsible for its decrease in profits.

The company, which released its results for the year to May 31 last week, said its pre-tax profits sank from £15.4 million to £13.4 million because punters made some lucky bets. The group does not hedge all client positions; chairman and founder Stuart Wheeler said the cost of hedging is very important to the company's profits.

"It is therefore right in the medium and long-term, within prudent limits very strictly applied, to stand the first part of the net position which arises from our client transactions," he said.

betandwin.com Q2 Turnover Up 459 Percent

Austrian Internet betting site betandwin.com is reporting turnover of EUR59.4 million for the second quarter of 2002, up from EUR10.6 million one year ago.

The group's net winnings for the second quarter were EUR3.4 million, compared with EUR878,000 in the same quarter of 2001, an increase of 292 percent, or EUR48.8 million. The net winnings margin was 10.2 percent for betting operations and 2.5 percent for casino operations.

betandwin.com is also reporting 82,766 new registrations in the second quarter of 2002, which brings its total number if registrants to 372,346.

Players Network to be Acquired By Northfield

Last week The Players Network (OTC BB: PNTV) announced it would be bought, subject to shareholder and regulatory approval, by Northfield Inc. The deal was negotiated by REB Gaming Inc.

Northfield will purchase the gaming Internet portal and 24-hour digital gaming and entertainment channel for about US$4.16 million, or approximately 32 cents for each of 13 million of Players Network's outstanding shares.

The Players Network will continue to operate as a wholly owned subsidiary of Northfield.

eConnect Trading Suspended

Trading of eConnect (OTC BB: ECNC) shares was halted on Thursday by the U.S. Securities and Exchange Commission. The company's stock trading is being suspended until Aug. 7. The SEC said it had concerns about investments made by another company in eConnect as well as the planned launch of Bank eConnect.

World Gaming Board Awaiting Q1 Results

World Gaming plc (OTC BB: WGMGY) stated Friday that the delay in the filing of its 20-F forms is due to management turnover. Mike Aymong resigned as president and CEO of the company in early July and was replaced by Jim MacKay. On July 19, MacKay was replaced by David Craven.

The gaming software supplier said the forms will be filed shortly and that its board has "instructed management that it is the company's policy to report interim results on a quarterly basis."

Kerzner Conference Call Aug. 6

Kerzner International Ltd. (KZL), formerly Sun International Hotels Ltd., will have a conference call to discuss its second quarter results at 4:30 p.m. on Aug. 6. The conference will be accessible on the company's Web site and on the CCBN Web site. To access the call by phone, dial 877-371-3550 from the United States or Canada and 706-679-0864 internationally.

Reports Released

Multimedia Games Inc. (MGAM) released its third quarter report for the quarter ending June 30. The company is reporting earnings per share of 47 cents, a 194 percent increase from the third quarter of 2001. Net revenue for the period was $25.9 million, a 119 percent increase from third quarter last year.