Bill Hill CEO Steps Down, New Search Begins
William Hill is on the hunt for a new chief executive after David Harding said Monday that he would step down before the end of the year. In a prepared statement, Harding said he felt the time was right to move on and "find a new challenge" after helming the company for seven years. "The company is in good health and, given the depth of management talent, the board has every confidence that William Hill will continue its strong performance as we search for David's successor," said company chairman Charles Scott. The Financial Times said analysts appear relaxed about the move. "While this comes as a surprise, we are not particularly concerned by the news, as we think it reflects personal reasons rather than anything more sinister . . . It sounds like he has the 'seven year itch,'" Vaughan Lewis, an analyst with Morgan Stanley, told the paper.
IGH Narrows FY Pre-Tax Loss
Interactive Gaming Holdings (IGH) has released full year results, which show a narrowed pre-tax loss of £1.97 million ($3.93 million), down from £2.33 million ($4.65 million) a year ago. The company said turnover rose to £32.9 million ($65.7 million) from £8.1 million ($16.1 million). It added that it expects a positive impact from the end of July onwards, with a reduction in operating costs from its decision to relocate the business to Malta.
Party Shares Resume Downward Spiral
The Daily Mail on Thursday carried a report on PartyGaming, whose shares since April have returned to their "well-trodden downward path." The paper said dealers were left scratching their heads as shares on Wednesday shed 3.75p, or 9 percent, to 31.5. Analyst James Hollings at Daniel Stewart "decided the shares had fallen far enough and suspended his sell advice," the Mail said. Stewart reckoned that part of the negative sentiment surrounding the stock is connected to the "substantial renumeration" Party CEO Mitch Garber receives. "The chief executive is in line to collect free shares and bonuses worth around £17 million ($34 million) if he just stays at the company another two years," it said. "Contrast that with the fortunes of shareholders who have seen their investment plummet from a high of 170.75p in 2005." Hollins added that despite the slide shares are still looking relatively expensive. Meanwhile, the company announced today that its second-quarter financial performance is in line with expectations and that it remains positive about the coming year. Interim results will be released Aug. 29.
Rank Shares Rally as Company Recovers from Smoking Ban
Shares in Mecca Bingo operator Rank rallied Thursday as the company said it has "begun to see some early signs of recovery" from the Scottish smoking ban. For the six months to June, revenue in Scotland was down 10 percent with admission 13 percent lower. The company reiterated that profits later this year would be affected by the introduction of the smoking ban in England. It added that like-for-like revenues across the group rose 5 percent during H1 2007, buoyed by a 37 percent surge at its interactive gaming arm, BlueSquare. Shares climbed 6.5p to 187. The Times quoted Matthew Gerard, analyst at Investec, as saying: "They've beaten my expectations in every division." Ian Burke, Rank's chief executive, said that the group was as prepared as it could be for the looming ban in England. "Our approach to the smoking ban is to focus on the changing needs of our customers and to adapt our product offer accordingly," he said.
Neteller Releases US, Trading Update
Neteller said Thursday that, due to its ongoing regulatory inquiry in the United States, it will not be able to finalize its full-year accounts in time to be sent to shareholders by June 30. In a prepared statement, the company said its shares remain under suspension on the LSE. It added that it has advised the U.S. Attorney's Office to expeditiously resolve the investigation--by no later than July 13, 2007, it said--in order for the company to finalize its accounts for the year ended Dec. 31, 2006.
Sportech says H1 Trading in Line with Expectations
Sportech, the London-listed operator, said it ahead of its AGM that it is exploring both domestic distribution and international expansion opportunities and is making progress in identifying potential targets. In a trading update released Thursday, the company said H1 trading has remained in line with internal and market expectations and is entering H2 with confidence. Good progress is being made on product development, as the company is looking to expand its games offering, it said. It added that it will make a further announcement on the Vernons football pools acquisition once the U.K. Competition Commission issues its decision, which is expected before October-end. In March, Sportech, owner of Littlewoods Gaming, entered into exclusive negotiations with Ladbrokes regarding the potential £50 million ($100 million) acquisition of its Vernons Pools business. If successful, the takeover would give Sportech control of roughly 90 percent of the pools market in the United Kingdom.