Ladbrokes' Expansion Depends on Vernon Pools Sale
Liverpool Daily Post has reported that Ladbrokes (LAD.L) would expand its telephone betting operation if the sale of its Vernons Pools to Sportech (SPO.L) goes ahead. In an interview with the paper earlier this year, Sportech CEO Ian Penrose said it was his company's intention to "reinvigorate" the pools, and that the acquisition of Vernons would be "in line" with this strategy. Meanwhile, The Times reported that Penrose would be submitting the deal, worth an estimated £50 million ($96.4 million), to the Office of Fair Trading and that he did not expect any problems, given "the huge competition from the National Lottery" and the rise of Internet betting on football.
Markets React to Bwin/Sportingbet Takeover Talks
Shares in London-listed gaming operator Sportingbet (SBT.L) rose nearly 15 percent on Wednesday after the company confirmed media reports hinting at a possible takeover bid from Vienna-based bwin (BWIN.VI), which said it was in "very preliminary discussions." On Thursday Sportingbet shares rose another 3 percent to 62p, but cooled slightly on Friday to close at 60.50. Bwin on Thursday closed at 32.60 euros, up 3.31 (11.30 percent) and gained an additional 1.90 (5.83 percent) to 34.50 on Friday.
Reporting
U.K. bookmaker William Hill (WMH.L) said it expects its interactive betting and gaming channels to improve upon the disappointing performance they produced in 2006. Results for the full year ended Dec. 31, 2006, released on March 5, showed gross win from the company's interactive ventures increasing 6 percent to £130.5million ($252 million). At group level, gross win rose 15 percent over 2005 to £931.3 million ($1.8 billion).
Click here to view William Hill's full year results.
Canadian I-bingo developer Parlay Entertainment Inc. (TSX VENTURE:PEI) has announced record results for the three and twelve-month periods ended Dec. 31, 2006.
Highlights included setting a new company record for revenue at $9,028,079, up 52 percent from 2005. Earnings before interest, taxes, deductions and amortization (EBITDA) increased to $2,192,804 from $869,425 in 2005. Cash on hand as of Dec. 31, 2006 was $3.1 million, up 146 percent from same period in 2005. Q4 highlights include a 22 percent increase in total revenue from Q4 2005 to $2,164,053, while EBITDA decreased to $110,459, from $163,502 in Q4 2005.
"2006 was the best year in Parlay's corporate history," said Scott F. White, president and CEO. "We achieved or exceeded all of the key objectives set for 2006. Historic levels of revenue, earnings and cash generated were realized primarily by our growth in Europe and the United Kingdom."
Click here to view Parlay's full year results.
Irish bookmaker Paddy Power (ISE:PWL) reported strong financial results for the year ended Dec. 31, 2006, due in large part to its online betting and gaming divisions, the company said. Revenues from its online gaming channel, PaddyPower.com--which includes poker, casino, games and bingo--increased 65 percent on FY 2005 to $37.2 million. Other highlights include a 31 percent increase in group turnover to $2.73 billion across all channels. Gross win rose 36 percent to $288.6 million, boosted by a 64 percent increase in win from online gaming and fixed odds betting terminals. EBITDA rose 52 percent to $61.5 million.
Click here to view Paddy Power's full year results.