Sportingbet Earns First Profit
Sportingbet plc (SBT) experienced a surge in share price Friday after announcing its fourth-quarter profit last week.
The company states that it plans to reduce debt and "looks to the future with confidence," while claiming that this first profit came largely as a result of gaining Sporting Odds last year. Sportingbet's CEO, Nigel Payne, made a purchase of £21,000, buying 75,000 shares at 28p each and increasing his shareholding to 130,000.
eBay Settles with US Attorney
eBay's latest Q2 net revenues are up 91 percent from a year ago and are now at a record $509.3 million. The company last week agreed to pay $10 million in a settlement with the U.S. District Attorney’s office, ending charges that its subsidiary ,PayPal, had illegally transferred funds for the use of online gambling.
Instead of taking the $10 million as a charge against earnings, eBay will simply adjust PayPal's purchase price. Rajiv Dutta said the settlement would not have any effect on the company's earnings
IG Group Buyout
Management for IG Group plc is buying out the company for $232 million (£143 million).
Reuters reports, "Bid vehicle IGGHL, backed by private equity firm CVC and firm's executive directors, is offering 255 pence per share, a 40.5 percent premium to IG's closing price on January 17."
An auction for the company was imminent after founder Stuart Wheeler announced that he wished to sell up his shares. On Friday, shares in IG Group were up 4.6 percent at 252.5 pence per share.
IG Group is a financial spread betting service located in the United Kingdom.
Penn National Gaming Fails to Make Interest Payments
HCS Inc., a unit of Penn National Gaming Inc., said Friday that it will not make its interest payments of $12.3 million on its 13 percent senior secured notes and its 13 percent first mortgage notes.
On March 14, HCS was notified that it had failed to make repurchase offers and was therefore in default under both indentures.
HCS is now in negotiating possible resolutions with representatives of the noteholders. HCS notes that it is not certain whether any restructuring or resolution can be reached and is also uncertain whether it may eventually be involved in federal bankruptcy proceedings.
Bingo.com Inks Agreement with Primary Creditor
Bingo.com said Friday that is has agreed with its primary creditor, Bingo Inc., to convert the April 16 debenture of $1,250,000, including the principal and accrued interest, into common shares of the company's stock.
Bingo Inc. is agreeing to defer the interest that was due June 30 and future interest until April 16, 2004. On that date, Bingo.com will pay the interest by giving Bingo Inc. shares of its own common stock.
Bingo.com has 11,104,608 outstanding shares of common stock.
Reports Released
betinternet.com plc (BET) on Thursday announced the preliminary results for the period ended June 1. The group experienced an operating profit of £100,443 and a gross profit of £4.16m, which is a 44.9 percent increase. Its Internet betting turnover also saw an increase, up 30.2 percent to £50.4m, and Internet betting margin (after duty) is up to 7.04 percent.
betinternet.com plc (BET) - Yearend Report
In its second quarter ended June 30, 2003 report, Magna Entertainment Corp. (MEC) announces that revenues have improved by 54.2 percent and EBITDA has improved by 90.30 percent. President and CEO Jim McAlpine credits these accomplishments to the company's newest acquisitions.
Magna Entertainment Corp. (MEC) - Second Quarter Report