Market Briefs - May 2-6, 2005

Genting Combines Stakes in Stanley and London Clubs

Genting Berhad, Asia's largest casino operator, has announced that it will combine its stakes in British companies Stanley Leisure Organisation Plc (SLY.L) and London Clubs International (LCI.L) to enhance its "ability to leverage its investments in the U.K. and expand its leisure and hospitality-related business activities." Genting and Stanley Leisure in November announced a joint venture project to build and operate casinos in Britain.

World Gaming To Float on AIM this Week

Shares in U.K.-based I-gaming software provider World Gaming Plc (WGMGY.OB) are expected to begin trading on the Alternative Investment Market of the London Stock Exchange on May 17. The company has agreed to a placing price of 52.5 pence per share on the placing of £2.5 million worth of new ordinary shares. The company recently reported its financial results for the year 2004, posting an increase in operating profits from £1,129,589.84 to £2,752,545.44.

Gaming VC Posts Results for First Quarter as Public Co.

Gaming VC Holdings S.A. (GMHq.L), which floated on the London Stock Exchange's Alternative Investment Market in December, has reported a 14 percent increase in handle to €480 million and an 11 percent increase in net revenue to €11.5 million for its first quarter of 2005 as compared to the same period in 2004. Since the company's public offering it has launched a Spanish site and marketing campaign and has acquired 4,328 new depositing customers. "These results are comfortably ahead of our initial plans," CEO Steve Barlow stated. "With cash conversion continuing to be extremely strong, we anticipate paying a dividend at the half year in line with our commitments made during the IPO in December."

Fireone Appoints Advisers to an AIM Float

Fireone Group, the owner of online payment processor Firepay, has appointed British investment bank Numis as advisors to a potential initial public offering on the Alternative Investment Market of the London Stock Exchange. The company reported pre-tax profits of $8.6 million and turnover of $34 million in 2004, and it could seek a valuation as high as $200 million.

Q1 2005 Sets Records for Parlay

Mobile gaming solutions provider Parlay Entertainment Inc. (PRYNF.PNK) achieved a new company record by receiving $1,136,974 in revenue for the first quarter of 2005. Revenue for the quarter was 7 percent higher than the company's previous record, and was 33 percent higher on a sequential basis. Net income for the quarter was $103,861, compared to a net loss of $178,009 during the same period last year.

Reports Released

Magna Entertainment Corp (MECA) has reported its financial results for the first quarter of 2005, posting $252 million in revenue compared to $292 million during the same period last year. EBITDA slipped as well, falling from $35 million to $14 million. While the company reported a net income of $21 million during the first quarter of 2004, the first quarter of 2005 produced a net loss of $4 million. According to the company's statement, "Contributing to the decline in revenues and earnings were the change in the racing calendar at Golden Gate Fields where live race days were shifted to later in the year, inclement weather in Southern California during the Santa Anita Park race meet and the disruption of the race meet at Gulfstream Park, where our redevelopment project continued and we operated from temporary facilities. These factors played a significant part of the overall decline in our reported results."