Unitab/Tabcorp Deal Approved
Shareholders in Queensland-based Unitab on Friday approved a A$4.3 billion merger with Victorian gaming and lotteries operator Tattersall's. The "merger of equals," which has been in the works since March 2006, was at risk of falling apart in June when Victorian gaming giant Tabcorp stepped in with a $1.9 billion takeover bid for Unitab. Tabcorp's bid was rejected in August, however, by the Australian Competition and Consumer Commission on grounds that the combined company would unfairly dominate the race betting industry. Unitab needed at least half of its shareholders to vote, and at least 75 percent voted in favor of the merger agreement. A court hearing is scheduled for Wednesday to approve the scheme of arrangement. Unitab shares will be suspended from trading on Wednesday, but shares in the merged company are expected to begin trading on Oct. 10.
Rough Week for Sportingbet
Shares in LSE-listed Sportingbet plc (SBT.L) plummeted more than 40 percent on Sept. 11, the company's first full day of trading since Sept. 6. Trading was suspended early on Sept. 7, following the announcement that the company's non-executive CEO, Peter Dicks, was detained at JFK airport in New York. In the first hour of trading, shares had fallen 94.75p to 144.75, a drop of 39 percent. The price sunk as low as 140 and rose nearly to 155 before setting at the end of the day at 144. Priced at 239 when trading was suspended, shares in the company fought their way back to 172p by Sept. 15.
Gala Coral Float Postponed
Gala Coral's planned £5.5 billion London floatation has been put on hold, according to private equity group Candover Investments PLC, while it waits to gauge effects of the forthcoming smoking ban in public premises in the United Kingdom. Candover told the Financial Times that a float before 2008 is unlikely.
The Times reported last week that the group is preparing to appoint financial services firm UBS to perform a strategic review of the company, which could lead to a sale of its betting operation. The newspaper reported that a sale such as this is likely to attract suitors like as PartyGaming and 888 Holdings, which have been seeking sports book acquisitions.
Reporting
888 Holdings Plc (888.L) is boasting an 88 percent surge in first-half underlying earnings with the release of its interim results for the period ending June 30, 2006. Gross profits totaled $48 million during the first half of the year, up from $25.6 million for the first half of '05. Analysts predicted an underlying profit of $45.4 million. After tax- and share-benefit charges, 888 netted a $42.7 million in profits, up from $24.5 million in 2005--a 74 percent increase. The group also reported an interim dividend of 4.5 cents a share and a special dividend of 4. The company additionally announced that its CEO, John Anderson, will stepping down at the end of the year. He will remain with 888 as a non-executive director, and Gigi Levy, the group's COO, will step in as CEO.
888 Holdings - Six Month Results
Chartwell Technology (CWH) has released unaudited results for the third quarter and nine months ended July 31, 2006. Third quarter revenue totaled $4.7 million, compared to $4.5 million for the same period in 2005; while revenue for the first nine months was $13.9 million, compared to $13.2 million for the same period in 2005. Overall revenue increased only 5 percent, which the company attributed to declines in revenue from Chartwell customers with exposure to the Italian market. (Controversial legislation introduced by the Italian government has limited access to the Italian market for certain of Chartwell licensees.)
Chartwell Technologies - Quarterly Results
Online sports content and gaming company ukbetting plc (UKB.L) released its interim results for the six months ending June 30 2006, reporting a 12 percent increase in overall turnover to £62.4 million. Turnover was £55.5 million for the same period in 2005. Other highlights include a 16 percent rise in gross profit to £13.2 million (compared to £11.4 million in 2005) and EBITDA profit improvement of 76 percent to £1.6 million (compared to £0.9 million in 2005). Total advertising revenue grew 34 percent to £1.74 million, of which revenue for consumer-faced advertising grew by 88 percent to £1.63 million. Affiliate revenue through Oddschecker grew 32 percent to £1.6 million; poker and casino revenue grew by 35 percent.
ukbetting plc - Six Month Results