MECN's Index Tracks Gambling Investments
Germany-based Media and Entertainment Consulting Network says its MECN Gambling Industry Index, which tracks a representative group of 47 gambling companies, has increased by 39 percent in the last year, outperforming most indices, including the Dow Jones, FTSE and MSCI. The company also claims that two thirds of the stocks of the world's 15 largest gambling companies have increased by more than 40 percent during the same period. The company's findings are based on a survey of over 100 gambling companies and investors, and the results are compiled in a report called "Investing in the Gambling/Gaming Industry." Although the survey found that 60 percent of investors agreed that performance of their gambling industry investment was above expectations, it also found that many financial investors are reluctant to invest in the gambling industry because of ethical reasons and a lack of knowledge about the industry. The report also includes information about how gambling companies can improve their investor relations.
Ladbrokes Contributes again to Hilton's Success
Hilton Group Plc (HG.L) has reported a 19 percent overall increase in profits for the four months ending in October, thanks mostly to the recovering tourism industry, but also partially due to the usual success of its Ladbrokes unit. Growth in gross win slowed from 14 percent to 7 percent last half at Ladbrokes' U.K. retail operations (excluding betting machines) as a result of adverse UEFA soccer results. The addition of 5,864 fixed-odds betting terminals completed at the end of June account for 59 percent of Ladbrokes' overall growth in gross win. Ladbrokes' operations in Ireland recorded an increase of 33 percent in pre-tax profit to €4.96 million. Turnover also increased 9 percent to €75 million.
Intralot Receives Best Business Innovation Award
Greece-based lotteries and gaming system provider Intralot S.A. has published its financial results for the quarter ended Sept. 30, showing a 15.6 percent gain in gross profit to €110.9 million. EBITDA also gained 7.5 percent to €94.3 million. The group did post a 9.7 percent decrease in consolidated revenues, however, to €229.5 million due to the non-incorporation of the sales of instant lottery games. The company was recently given a Best Business Innovation 2004 Award, the purpose of which is to promote the best of the Athens Stock Exchange-listed companies for their contribution in the development of the stock exchange and the Greek economy in general.
Interactive TV Company to Float this Month
Interactive digital media company Two Way TV Australia Ltd. will try to raise AU$40 million through a public float this month. The company, which has been operating in Australia for over 10 years, has an exclusive license to access Two Way TV UK's library of digital, interactive TV and mobile media applications. The company has already used the licensed technology to collaborate with Sky Racing and Tab Ltd. in developing an interactive racing application that would enable punters to place bets via television with state-licensed totalisators. The company expects to have the betting application available to NSW TAB 1 customers within 18 months.
Another Refinancing for Coral Eurobet
Coral Eurobet, England's third largest betting shop chain, completed a £1.25 billion refinancing this week by tapping into receptive debt markets while trading exceeded growth targets. The refinancing is the group's second in nine months. It repaid a £160 million shareholder loan in 2004 and is returning a further £400 million of capital. Since being purchased for £860 million by a buy-out team led by Charterhouse two years ago, the company has made around £560 million in repayments to investors.