Market Briefs (May 20-24)

Ainsworth Game Technology has downgraded its revenue and profit projections for 2002 due to delays in gaining regulatory approvals in Queensland and Victoria. The company also cited costs involved with technical upgrades and enhancements of its gaming platform in New South Wales. The result, according to AGT will be a loss between $3 million and $8 million, depending on the timing of the proposal. In November 2001 the company forecast a profit for 2002 of $952,000.

Sun Issues Revised Shelf Registration Statement

Sun International Hotels Ltd. filed on Wednesday a universal shelf registration statement with the SEC relating to the sale of up to $500 million in securities. The statement is intended to allow Sun International flexibility in choosing what type security to sell in the future. Options various types of debt securities, ordinary shares, preference shares and warrants. As reported by Reuters, the statement replaces the company's previously filed shelf registration statement, which related only to debt securities. The company doesn't plan to issue additional debt securities, ordinary shares, preference shares or warrants pursuant to the shelf registration statement.

On Tuesday the company announced that its Sun International North America Inc. subsidiary, as of 5 p.m. in New York City on May 20, 2002, had received the tenders and consents required to eliminate or modify certain covenants and related provisions in the indenture governing their outstanding 9 percent senior subordinated notes due 2007. As of the consent date, approximately 93 percent of the $200 million aggregate principal amount outstanding of the notes were received and accepted for payment by the company and SINA.

Hilton Struggles Despite Success of Ladbrokes

Shares of Hilton dropped in mid May after the group announced underlying profits for the first four months of the year were 14 percent lower than last year. The company attributes the lower profits to the impact of the events of Sept. 11. As reported in Financial Times, however, the group says it is "positive about a second half upturn in occupancy, followed through later by a rate recovery." The company also reported that its Ladbrokes subsidiary has performed well thanks to the abolition of the U.K. betting duty. Turnover rose 55 percent.

Rough Year for Snai

Italian bookmaker Snai closed 2001 with net losses of EUR 47 million--significantly higher than losses of EUR 0.85 million in 2000. The board may seek to cover losses through profits generated in previous years and reserves. Turnover dropped in 2001 50.7 percent to EUR 79.2 million. Its gross operating margin dropped 82.9 percent to EUR 5.9 million. Net financial burdens rose by 32.8 percent to EUR 5.9 and extraordinary items more than doubled to EUR 13.2 million.

Stock Split for Penn National Gaming

Penn National Gaming Inc. announced Wednesday that its board of directors has approved a 2-for-1 split of the company's common stock. The stock split will be in the form of a stock dividend of one additional share of the company's common stock for each share held. The additional shares will be distributed on June 25, 2002 to shareholders of record on June 4, 2002. As a result of the stock dividend, the number of outstanding shares of Penn National's common stock will increase to approximately 39.1 million.

Bingo.com Announces Warrant Cancellation

Bingo.com Inc. on Thursday announced the cancellation of the warrant held by Redruth Ventures Inc. Bingo.com gained the warrant, convertible to 7,200,000 shares at $0.25, in exchange for unsold advertising space on the Bingo.com Web site to be delivered over the next eighteen months. The company has received and canceled the warrant.

Reports Released

For the first quarter of 2002, BETandWIN.com Interactive Entertainment AG/ASE reports revenues of EUR 2.493 million next to expenses amounting to EUR 5.284 million for EBITDA of EUR -2,791, compared to EUR –3.527 million for the same quarter in 2001. Turnover for the quarter was 50.8 million compared to EUR 13.2 million in Q1 2001. Net winnings were EUR 2.3 million--tripled compared to Q1 2001.