AIM Float: Betcorp
Shares in Australian interactive gambling company Betcorp Limited were admitted to the Alternative Investment Market of the London Stock Exchange on Friday with an opening price of 251.5p that was set by converting Betcorp's Australian share price into pounds sterling. The share price eventually rose 8 percent throughout the course of the day to give the company a market valuation of over £53 million. Betcorp's shares are listed on the AIM under the ticker symbol "BCL.L"
Betcorp's shares are already listed on the Australian Stock Exchange (BCL.AX), but the company wanted to trade on the London market as well because it felt its Australian-traded shares are undervalued compared to some of its London-listed rivals. Chairman David Hudd also explained to Reuters that London would be at the forefront of corporate activity in the online gambling sector and that Betcorp was "determined to play a leading role in industry consolidation."
Betcorp reported gross revenues in fiscal 2005 of US$29.4 million and betting turnover of $825 million, leading to profit after tax of $4.3 million.
AIM Float: New Media
New Media Lottery Services Plc (NMLS.L), a provider of white-label new media lottery solutions, floated on the London Stock Exchange's Alternative Investment Market on Friday, placing 3,672,572 new ordinary shares at 50p each. The placed shares represent 14.96 percent of the companies enlarged share capital. After admission, NMLS has 24,550,000 ordinary shares in issue and a market capitalization of £12.3 million.
NMLS supplies and operates Internet lottery games for lottery operators and charities and intends to develop software for mobile phones and interactive television. The company has long-term agreements to provide services to clients in return for a percentage of lotteries' net sales; it operates lottery systems for three clients, including Rehab Net Games Limited in Ireland, and has entered into contracts with two additional bodies. The group also intends to design and distribute games for use on other hardware platforms for license fees and has a contract with Inspired Broadcast Networks to deliver games for use on their video terminals.
Leach Bill Jolts I-Gaming Stocks in London
Online gaming stocks took a hit on the London Stock Exchange last week following news that an online gambling prohibition bill had received a favorable initial reading before a subcommittee of the U.S. House of Representatives on Wednesday. Most of the gaming companies have bounced back though, and 888 Holding Plc (888.L) even rose to a higher share price, due mostly to upbeat preliminary results for fiscal 2005.
Shares in payment processor NETeller Plc (NLR.L) opened last Tuesday at 690p and reached a low of 600p on Thursday before bouncing back to 655p on Monday. PartyGaming Plc (PRTY.L) opened at 131p last Tuesday and reached a low of 113p on Thursday before bouncing back to 113 on Monday. 888 Holdings opened at 184p last Tuesday, fell to a low of 172p on Thursday, then rose to 191p on Monday. BetonSports Plc (BSS.L) opened at 161p last Tuesday, fell to 147p Thursday and rose to 154.75p on Monday, and Sportingbet Plc (SBT.L) opened at 385p last Tuesday, fell to 335 Thursday and rose to 370p on Monday.
Meanwhile, online gaming software company Playtech is proceeding with a plan to list on the Alternative Investment Market this month. The float has reportedly been more than five times covered at a price of 2.60p per share, which would raise £175 million for the company and value it at £550 million.
Softbank Appoints Adviser
Business law firm Lovells has been named co-adviser to Tokyo-based Softbank on the acquisition of Vodafone's Japanese cellular business. Linklaters is also advising on the deal. Lovells is also advising Softbank on its acquisition of a 23 percent stake in British betting exchange Betfair.
Reporting
Canadian I-gaming software provider Chartwell Technology Inc. (CWH.TO) has announced the financial results for its first quarter of fiscal 2006--its 14th consecutive quarter of profitability. The company reported total revenue of C$4.4 million, a decrease from Q1 2004's C$4.8 million. Chartwell also notes that "although software license fees, which represent 96.3 percent of total revenue, decreased by 7.8 percent to C$4.2 million, the quarter (Q1/06) over quarter (Q4/05) growth was 4 percent and, with the exception of the anomalous first quarter of 2005, is in line with our historical sequential growth rate for Q1 of between 3 percent and 5 percent." Chartwell's net income for the quarter was $504,000 or $0.03 per diluted share.
Chartwell Technology Inc - Quarterly Report
888 Holdings Plc has delivered its preliminary results for the fiscal 2005, revealing a 59 percent improvement in profit after tax, which reached US$65 million. Other highlights for the year include a 52 percent increase in net gaming revenues to $271 million, a 72 percent increase in net cash generated from operating activities to $88 million, and a 58 percent rise in earnings per share to $19.3. The company now has 23 million registered member accounts (2004: 18 million) from 177 countries, 5.5 million of which are real money member accounts (2004: 3.7 million). Fifty-five percent of 888's customers come from the United States (2004: 58 percent), 20 percent come from the United Kingdom (2004: 15 percent), 17 percent come from the rest of Europe (2004: 20 percent) and 8 percent of players come from other countries (2004: 7 percent).
Upon the publication of the results, CEO John Anderson reiterated to reporters that his company is seeking new acquisitions, particularly a non-U.S. sports book, to diversify revenue streams and limit its reliance on the United States.