SportingBet Courting Tropical Paradise
After announcing last week that it was postponing its financial results because it was in advanced negotiations to purchase an established poker network, Sportingbet (SBT.L) has revealed that Tropical Paradise, owner of ParadisePoker.com, is the company it is hoping to buy. Sportingbet is reportedly offering over £170 million for the Costa Rica-based company. Sportingbet, which is valued at about £229 million, would nearly double in value if successful in its purchase.
Speculation over Gibraltar Companies Floating in London
According to the Times Online, Gibraltar-based Cassava Enterprises, operator of 888.com, is considering an initial public offering on the London Stock Exchange. The Times quotes CEO Jon Anderson as saying, "We are looking at our options, but we haven't appointed advisers. Nothing's firm at all, although (an IPO) is something we're considering. If we do it, it would take six to nine months." Cassava has EBITDA estimated between $80 million and $100 million. The same Times article speculates about the possibility of iGlobalMedia, operator of PartyPoker.com, also launching an IPO in London. iGlobalMedia (who coincidentally is based in the same building in Gibraltar as Cassava Enterprises) has an estimated EBITDA of about $350 million and would be expected to raise over $2 billion in an initial offering. Vikrant Bhargava, iGlobalMedia's director of marketing and CEO of PartyPoker, stated last month that if the company were to go public it would not happen within the next 12 months. He also stated that his company would likely use the funds acquired from an IPO to acquire rival poker sites.
Betcorp Expects Loss Despite Gross Margin Improvement
Australian-listed Betcorp (BCL.AX) announced last week that its third quarter financial report will show a material net loss of between $7 million and $10 million despite encouraging improvement in gross margin following recent major management and operational changes. The loss is mainly attributed to restructuring costs, writing off aborted acquisitions, the termination of agreements by previous management and costs associated with the sale of Sportsbet. In September, the Northern Territory Licensing Commission ordered Betcorp to sell the Australia-based Sportsbet operation when it learned that Betcorp had come under the control of convicted racketeer Bill Scott after three of its board directors left the company. Sportsbet was purchased by its general manager, Colin Walker, for an undisclosed amount. The full market details of Betcorp's third-quarter report are expected to be disclosed this week.
The Future of PBL?
James Packer, Chairman of Australia-based Publishing and Broadcasting Ltd (PBL.AX), told shareholders at a recent annual general meeting that the company has experienced growth in all major years during the last year and promised increased growth next year. He stated the next major area of expansion would be with Betfair if it is successful in attaining a license in Australia. "If it does become licensed in Australia, we will be a 50 percent shareholder and we believe in that situation the business has significant potential to create value for shareholders," he said.
AngelCiti Reports Gross Win and Net Handle Stats
Florida-based AngelCiti Entertainment (OTC:AGCI) announced that its subsidiary, gaming software provider Worldwide Management, received gross win over $1.138 million on net handle of $27.8 million in the first half of 2004.