Gameaccount Postpones Float
Skill gaming company Gameaccount might postpone its anticipated float on the Alternative Investment Market of the London Stock Exchange until next year. Director Dermot Smurfit told The Sunday Times, "We are adopting a wait-and-see approach. We had been hoping to go to the market this year, but it now seems like it could be next year." Gameaccount announced early this month that it intended to seek a valuation of over £100 million through a float on the AIM before the end of the year. The company reportedly has no specific requirement for capital and therefore plans to raise less than a £10 million. The company also revealed that it was in the final stages of due diligence to acquire an international rival.
Newcomer Fortuna Closes First Round of Financing
Fortuna Gaming Corp. (FGAM.OB) has successfully closed its first round of financing of US$1.7 million by selling 1.7 million share units at $1 each. The company plans to use the proceeds to acquire gaming software for its mobile platform, establish gaming and corporate Web sites and set up its U.K.-based operating subsidiary, Fortuna Gaming Limited. Prior to entering the online gambling market in June 2005, Fortuna specialized in financial services and went by the name MoneyFlow Capital Corp. It most recently acquired a mobile poker software license from MobileGamingNow. A second round of financing is underway, with 10 million shares being offered at $1 per unit.
Leisure & Gaming Acquires Stanley's Online Casinos
Leisure & Gaming Plc (LNG.L), the parent company of Curacao-based online gambling operator VIP Management Services, has acquired Stanley Entertainment NV, the online casino business of Stanley Leisure Organisation Plc (SLY.L), for £1.86 million in cash and a potential deferred payment of up to £280,000. The deal will have Leisure & Gaming gaining further U.K. and European revenue streams and an extended customer base for its international business. The two parties have also agreed to a partnership for developing their brands and assets online, leveraging Leisure & Gaming's operational and product infrastructure. Plus, they have signed an initial 12-month affiliate agreement in which Stanley Leisure will direct its customers to certain Leisure & Gaming sites. Leisure & Gaming has committed £140,000 as a pre-payment against future affiliate revenues to Stanley Leisure.
Wagering Slightly Weaker in Q1 for UNiTAB
Queensland-based betting company UNiTAB Limited (UTB.AX) revealed that wagering levels for its first financial quarter of 2005/06 are slightly behind last year's results, due to a number of negative factors, including wet weather, less consumer spending, higher fuel prices and fewer race meetings. The company expects a similar result in the next quarter but anticipates much more growth in the second half. Net profit for the year 2004/05 reached AU$62.56 million, a 15 percent improvement over the previous year. UNiTAB has begun the process of finding an internal successor to fill the vacancy that will be left by departing CEO Dick McIllwain, whose contract expires in October 2007. McIllwain, who has led the company since 1989, also has the option to leave in October 2006 if he so chooses.
Empire Warns of PartyGaming Effects
Empire Online Limited (EOL.) issued a trading update last week to notify the market that its has experienced a slowdown in rake generated by EmpirePoker.com after PartyGaming (PRTY.L) announced on Oct. 10 that EmpirePoker and three other skins will no longer use the same platform as PartyPoker.com players. As a result, Empire Online now expects its net profit for 2005 to be about 10 percent lower than consensus market estimates.