PayPal I-Gaming Phase-Out Having Little Effect on Crypto
Analysts said last week that eBay's announcement that after it buys PayPal, the e-cash company will no longer service Internet gambling customers is not affecting the share price of CryptoLogic Inc. (CRYP).
"It's too early to tell at this time, but I don't see a major impact," said Scott Preston, an analyst with Research Capital.
Preston did, however, lower his earnings estimate for CryptoLogic because he foresees the software company losing a portion of its user base when PayPal no longer services I-gaming transactions. He predicts that Crypto will have 2002 revenue of $38.7 million instead of the previously stated $39 million, and 2003 revenue of $49.7 million instead of $52 million.
Another analyst, Brandon Osten of Sprott Securities, lowered his earnings estimate of CryptoLogic in 2003 to 70 cents per share from $1 per share.
"There are other services that are as convenient as PayPal, just not as well known," he said.
TAH Buy Back Proceeding
As of last week, Tab Corp. (TAH) had bought back about 800,000 shares and was still planning to purchase 18.2 million more. Tab Corp.'s amount of issued capital is AU$373 million, and its buyback represents 5 percent of the ordinary issued capital.
Tab Corp. is engaging in the buy back because its individual shareholding limit was changed to 10 percent from 5 percent. In addition, its 40 percent foreign ownership restriction was eliminated.
AMP and Perpetual Trustees lodged shareholder notices worth 5 percent each late last month.
Stanley Leisure Acquires Tower Casino Group
Stanley Leisure (SLY) is buying the five casinos of Tower Casino Group for £44.3 million in cash.
The purchase will reinforce Stanley Leisure's stance as a leading casino operator in the United Kingdom. When the deal is complete, Stanley Leisure will own 40 casinos, three of which are in London. The company's pre-tax profits are up 42 percent in the year to April 28. In addition to its casinos, Stanley Leisure owns 650 betting shops.
Bob Wiper, chief executive, said that five years ago the company was "a betting business with some casinos on the side."
"Things have changed and these new casinos are very good quality," he said.
Greek Lotto Group to Hold Secondary Share Offering
The government of Greece is hoping to raise $474.3 million from a secondary share offering by Opap, the state-controlled football pool and lottery operator.
Opap was first listed on the Athens stock exchange last year. The group is predicting strong revenue growth as it introduces new lottery games and betting products in the time remaining before the 2004 Olympics, which will be in Athens.
Opap has a 20-year license to operate the lottery and sports betting offerings. Its share price has increased 60 percent since its initial public offering last year. Its rivals, however, including Intralot and Hyatt's Greek casino operations, however, trade at a higher price. Opap's first-quarter results are expected to rise 25 percent.
A law was recently proposed in the Greek legislature that would ban all forms of electronic gambling in the country.
eLOT Submits Reorganization Plan
eLOT Inc. (OTC BB:ELOT) announced last week that on July 2 it filed for a plan of reorganization for itself and its wholly owned subsidiary, eLottery Inc. Both eLOT and eLottery have filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in New York on Oct. 15, 2001.
The statement of disclosure regarding the reorganization plan is subject to approval from the Bankruptcy Court. A hearing for that approval will take place on July 18.
The reorganization plan calls for the company to cancel its existing common stock, warrants and options and to convert its long-term debt to equity. It also calls for the company to be recapitalized with a new class of common stock.