Floater
Ireland-based Lottery Network Services Limited, trading as New Media Lottery Services (NMLS), a provider of white-label new media lottery game solutions to charities and other lottery license holders outside the United States, has announced its intentions to float on the Alternative Investment Market of the London Stock Exchange and to carry out a placing of shares. Zimmerman Adams International Ltd. is acting as broker in connection with the proposed placing.
Here Comes Freelotto
Kevin Aronin may be looking to bring his online lottery business, U.S.-based Freelotto, to Scotland, claiming the move could create up to 300 jobs. He has allegedly sought legal advice and held informal talks with the Scottish economic development authorities about making the move. The Sunday Herald reported Aronin was recently in Scotland to present a $1million check to the first U.K. winner at freelotto.com. Aronin told the Herald that his business was limited in the United States because of the political climate and that an opportunity such as this could make Scotland the global capital of the lottery sector. He said that Freelotto had conducted 3 billion draws with its current staff of 30 and has earned US$150 million in revenues since it started in 1999.
Party Zeroes in on Empire
PartyGaming (PRTY.L) last week confirmed its intention to buy its partner/competitor, Empire Online (EOL.L), an Israel-based marketing company that listed on the AIM in June at £517 million. Shares of Empire have dropped 40 percent since its third-quarter trading update (reflecting slowing growth) on Oct. 10. The company warned on Oct. 18--following the announcement of PartyGaming's decision to exclude licensees' players from PartyGaming's flagship PartyPoker network--that annual net profits would be 10 percent lower than expectations.
Reporting
I-gaming software developer CryptoLogic (CRYP) experienced a 28 percent boost in the market last week, despite its imminent severance form Betfair, which currently accounts for approximately 5 to 10 percent of CryptoLogic's revenues. The third-quarter growth was driven by an 89 percent increase in poker fees over the same period last year and a 12 percent rise in casino revenues. Other highlights include quarterly revenue growth of 35 percent to $21 million and a rise in earnings of 80 percent to nearly $5.1 million. Internet poker fees derived from WagerLogic, CryptoLogic's licensing subsidiary, rose 89 percent from last year, and Internet casino revenue derived from WagerLogic rose 12 percent from last year.
CrytopoLogic - Q3 2005
FUN Technologies Plc's (FUN.L) third-quarter results for 2005 show that consolidated revenue is up 85 percent from the second quarter of 2005 to £4.3 million. Skill games revenues rose 33 percent from the second quarter. EBITDA grew to £526,000, and the company recorded a GAAP loss on ordinary activities after taxation of approximately £2.1 million.
FUN Technologies - Q3 2005
GWIN Inc. (GWIN), which claims to be the only publicly traded sports handicapping in the United States, announced financial results for the fiscal year ending July 31, 2005. The company showed an operating loss of $927,779 compared to last year's $654,049, and total revenues decreased from $6,080,787 to $5,502,860. The decrease in revenues is partially offset by a decrease in operating expenses to $6,430,639 compared to $6,734,836 for the prior year. The net loss for the fiscal year decreased to $1,800,830 compared to $1,903,284 for the previous year.
Unibet Group plc (UNIB.ST) has reported gross winnings of £11.2 million for the third quarter, with a margin of 17.9 percent and a total of £27.4 million for the first three quarters of 2005. Turnover for the third quarter reached £62.6 million, and profit from operations increased 56 percent to £4.6 million. Profit after tax for the quarter increased to £3.4 million. Poker gross winnings increased 43 percent quarter on quarter, from £2.8 million to £4.0 million. The number of active customers increased 53 percent quarter on quarter from 91,000 to 139,000--39,000 of which came through the acquisition of MrBookmaker.
Unitbet Group - Q3 2005