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bones:
I sent him my opinion via PM. And, that is that he MUST put a cork in it immediately or else he WILL be overwhelmed.
As to deputy services, I'm NOT available.
Len
len, i can just see Matt sweating right now...he'd have to open up four new i-hub jail cells and wouldn't have time to stop for dining at even taco-bell, he'd be so busy policing the onslaught of rb-penny-pickers.
are you available for deputy services, len, i'd be available to bash a few of em for minimum-wage. lol
bones:
I can tell you that Matt is seriously considering charging for any new membership just to avoid an onslaught of RB idiots.
Len
ill betcha even-money that bigbaby shows up here. lol
WGMGY has been dead ever since the halt. Now trading and spread is starting to pick up, but oh so slowly.
With RB down for what may be for good I wonder if those members will come here or go to yahoo.
As investorhub attracts more serious investors and many on the RB WGMGY board were game playing novice my guess is yahoo will see a lot and we will get but a few.
Hope we dont get the rejects as there really were some children over at RB.
Can't believe no one's watching WGMGY after the deal it made last week. This is THE revenue season for gaming and no one's paying a bit of attention? Must be why PHFB's laying on the ground way under the radar, too. http://www.investorshub.com/boards/board.asp?board_id=3228
World Gaming plc - Acquisition and suspension of trading on AIM
10/25/2005 7:00:48 AM
LONDON, Oct 25, 2005 /PRNewswire-FirstCall via COMTEX/ -- The Directors of World Gaming ("the Directors") are pleased to announce that the World Gaming Group has entered into a conditional purchase agreement (described below) to acquire certain of the businesses and assets of Real Entertainment Ltd ("Real") and the entire issued share capital of DNI Holdings Ltd ("DNI") (together the "Sportsbetting.com Group"). The Sportsbetting.com Group is currently the World Gaming Group's largest licensee. The comprehensive combined businesses of the two groups will further leverage the World Gaming Group's existing software, infrastructure assets and experience.
The Sportsbetting.com Group has established a number of popular Internet-based gaming brands since its inception in September 1999, including its flagship brand www.sportsbetting.com and its other primary sites www.racebook.com and www.win4real.com. The Sportsbetting.com Group offers a full suite of sports betting, horseracing, casino, and poker products on each of its sites as part of the gaming software which it licenses and sublicenses from the World Gaming Group.
The acquisition is conditional upon the World Gaming Group securing the required debt and equity financing as well as obtaining the consent of World Gaming's shareholders at the Annual General Meeting ("AGM"). The conditional purchase agreement provides that the vendors may terminate the agreement if these conditions are not met by 14 December 2005, unless extended by mutual agreement of World Gaming and the vendors.
World Gaming will mail its shareholders a notice for the AGM together with a circular containing comprehensive details of both groups and the transaction as contemplated. This will be sent together with proxy materials not less than 21 days prior to the AGM, which the Directors expect will be held in late November 2005.
The transaction constitutes a Reverse Takeover for the purpose of the AIM rules and hence in accordance with these rules World Gaming has requested that its shares be suspended from trading on AIM until the AGM. World Gaming will apply for the enlarged issued share capital (which includes the existing shares, placing shares and shares issued to the vendors of the Sportsbetting.com Group as part of the acquisition) to be admitted to trading on AIM subject to the conditions being satisfied. Dealings on AIM in the enlarged issued share capital shall commence as soon as practicable thereafter. If the conditions of the acquisition are not met, dealings in the existing ordinary shares on AIM will continue as soon as practicable.
TERMS OF THE TRANSACTION
The World Gaming Group will acquire certain assets of Real and the entire share capital of DNI. The principal terms, as set out below, highlight the key elements of the offer for the acquisition of the Sportsbetting.com Group, which is expected to complete, subject to completion of the required equity and debt financing and the passing of the resolutions at the AGM, having an effective date of 1 October 2005 ("the Effective Date"). The Effective Date is that date at which all of the business and assets of the Sportsbetting.com Group are deemed to have been acquired, subject to completion of the acquisition.
The payments are structured as follows:
- The consideration paid will be equal to six times the
Sportsbetting.com Group's Profit Before Tax ("PBT") as defined under
International Accounting Principles for the calendar year of 2005, up
to a maximum total consideration of $96m, which shall be satisfied 75%
in cash and 25% by the issue and allotment of Consideration Shares;
- The consideration shall be $96m provided that the PBT is not less than
$15m. To the extent that the PBT is below $15m, the consideration
shall be six times the 2005 PBT, subject to a minimum consideration of
$72m (see the example detailed below). Any reductions shall come
75 per cent from cash and 25 per cent from equity;
- World Gaming proposes to pay the consideration as follows:
Description Due $m
-------------------------------------------------------------------------
Example
First Payment
Cash Only On completion 54.0
Second Payment - 6 x Full Year
2005 PBT less First Payment (to
a maximum of $16m) less holdback
for Third Payment
Cash January 7, 2006 10.8
Shares January 7, 2006 21.6
Third Payment - 10 per cent
Holdback of Total Consideration
Cash October 7, 2006 7.2
Shares October 7, 2006 2.4
--------
96.0
--------
--------
The second and third payments will be paid into escrow during the
fourth quarter of 2005 and the first quarter of 2006, pending
verification of the 2005 PBT.
- The third payment shall become payable seven days after the first
anniversary of the Effective Date subject to no warranties having been
breached by the vendors and any adjustments having been required for
calendar 2005 full year audit. In the event of a dispute, both parties
will agree on an independent expert to resolve the disputed portion in
a manner binding on both parties.
The terms of the acquisition require that the vendors shareholding in World Gaming shall not exceed 29.9 per cent at any time. The Consideration Shares issued to the vendors will be at the same price as the equity fund-raising which is expected to be carried out in conjunction with the acquisition, and will be subject to lock-up arrangements.
In the event that the conditions upon which the transaction is conditional are not met by 14 December 2005 or, any later date mutually agreed, World Gaming shall be liable to pay the vendors costs in relation to the transaction not exceeding pnds stlg 500,000.
BACKGROUND TO THE TRANSACTION
Following the initial admission to AIM in May 2005, the World Gaming Group has continued to implement its strategy of growing revenues within the existing licensing business. In addition, following the World Gaming Group's commitment to pursue new licensing opportunities, World Gaming has announced a number of new licensing deals, which it believes will provide growth in revenue in future periods. The World Gaming Group is committed to remain a key licensor of gaming software within this sector.
As the gaming software, the hosting facilities and key supplier relationships already exist within the World Gaming Group, it is believed that entering the business of operations, as well as being a key supplier to the sector will provide greater utilization of the World Gaming Group's assets.
The Sportsbetting.com Group makes use of an extensive list of URLs and a number of Internet based gaming brands (including www.sportsbetting.com, www.racebook.com and www.win4real.com) which, together with associated trade marks, form part of the acquired assets. The Sportsbetting.com Group offers a full suite of sports betting, horseracing, casino, and poker products on each of its sites as part of the gaming software, which it licenses and sublicenses from the World Gaming Group.
The Sportsbetting.com Group turnover has grown significantly since its inception and industry estimates predict strong growth in the sector to continue. The Directors believe that the Sportsbetting.com Group's ability to offer a single platform on which users can place bets across sports, casino, horse racing and poker together with strong branding and marketing expertise has positioned the Sportsbetting.com Group to participate vigorously in this growth. The Directors further believe that the Sportsbetting.com Group's marketing focus on customer acquisition and retention strategies has further added to the value of the business through building a profitable database of recreational players. The Directors believe that the Sportsbetting.com Group's URLs have been integral to its success. The Sportsbetting.com Group is currently the World Gaming Group's largest licensee and all of its operations other than marketing are carried out, managed, or sub-licensed by the World Gaming Group, therefore the World Gaming Group believes that the combination of the businesses is expected to be relatively straightforward.
The key strengths of the World Gaming Group, which were outlined at the time of initial admission to AIM in May 2005, are:
- experienced and respected management team;
- cash generative, profitable and growing;
- established, widely used and highly reliable gaming software and
infrastructure;
- excellent record for processing high volumes of transactions;
- flexible product offering for licensees;
- track record as provider to the industry leader;
- low cost and short timescale set up for new licensees; and
- expansion opportunities including potential acquisitions.
The World Gaming Group believes that these key strengths will be enhanced significantly through the acquisition.
REASONS FOR THE ACQUISITION
The core of the current management team was established in 2003 with the immediate objective to stabilise the Group's operations and achieve profitability within the gaming software licensing business. Having met these immediate objectives, the Directors began to focus on leveraging key assets including the gaming software itself, the intellectual property and the associated infrastructure. Each of these establishes a strong platform to achieving the objective of moving up the industry value chain by taking ownership of the underlying customer database. This will allow the World Gaming Group to earn all of the revenue, or net win, on each gambling transaction as opposed to a percentage of revenue under existing licensing models.
INFORMATION ON THE SPORTSBETTING GROUP
The Sportsbetting.com Group has established a number of key Internet based gaming brands since its inception in September 1999. Its flagship domain is www.sportsbetting.com and its other primary sites are www.racebook.com and www.win4real.com. The Sportsbetting.com Group offers a full suite of sports betting, horseracing, casino, and poker products on each of its sites as part of the gaming software, which it licenses, and sublicenses from the World Gaming Group.
The Sportsbetting.com Group also includes certain other domain names and the customer database. World Gaming provides software and associated infrastructure requirements from its gaming servers in its secure leased facility in Antigua. In addition, World Gaming facilitates critical third party relationships for transaction processing, customer service and risk management. At present only the marketing and hosting of the front end websites used for marketing is outside the control of World Gaming. As part of the Acquisition, marketing activity that has been carried out by and on behalf of the Sportsbetting.com Group since its inception will be performed by the World Gaming Group. The performance of these activities will be assisted through key marketing relationships that were in existence prior to the proposed Acquisition and previously used by the vendors.
The Sportsbetting.com Group and its associated assets have grown significantly in the six-year period since its inception. The Directors believe that the Sportsbetting.com Group's URLs, particularly www.sportsbetting.com, have been integral to its success. Another key driver of growth has been the affiliate programs, which have been run by the Sportsbetting.com Group whereby other websites drive traffic to its own websites in return for a portion of the revenues derived from those customers. The Sportsbetting.com Group also makes extensive use of on-line and off-line advertising as well as using competitions, print advertising, physical mail-outs, advertising at events and customer loyalty programs. The Directors believe that the growth of the business in this period demonstrates the success of the marketing techniques employed and scalability of the Sportsbetting.com Group's operating model.
With the strength of the Sportsbetting.com Group's brands, the Directors believe there is an opportunity to target other geographic regions, which will increase revenues, diversify risk and reduce the seasonality, which exists due to the sports seasons in the United States. The addition of non-event reliant products such as poker will further mitigate seasonal demand.
The Sportsbetting.com Group experiences competition from a number of sources, however, the Directors believe that the Internet Gaming market is fragmented and is growing sufficiently quickly that no individual business represents a current and material commercial threat. As the market matures, however, the Directors believe there will be increased competitive pressures and consolidation within the industry. The Directors believe that the Enlarged Group has sufficiently strong operations and management to operate successfully in this environment and to take advantage of consolidation and the opportunities presented.
SUSPENSION OF SHARES IN THE U.S.
Once the AIM trading suspension becomes effective, World Gaming's American Depositary Receipts ("ADRs") - which trade on the Over the Counter Bulletin Board - may become subject to a five-day trading halt initiated by the NASD pursuant to Rule 6545. World Gaming understands that any such NASD trading halt would be subject to a five-day maximum duration. World Gaming further understands that if the NASD were to require a full five-day trading halt, trading in the ADRs could not resume until such time as World Gaming's market makers were able to comply with applicable NASD and the U.S. Securities and Exchange Commission rules which apply once a security has been subject to such a trading halt.
Commenting on the proposed acquisition, Daniel Moran, Chief Executive of World Gaming, said:
"The acquisition represents the World Gaming Group's first step into Internet gaming operations in its core markets of sports betting, horse racing, casino and poker. Our existing business and assets combined with those of the Sportsbetting.com Group represent a robust platform from which we can continue with our strategy to grow and become a leading consolidator in the industry. We believe that this transaction better positions the Group to target global markets which will increase revenues and diversify risk".
Enquiries:
World Gaming plc Tel. +1 888 883 0833
Daniel Moran, Chief Executive
Daniel Stewart & Company Tel. 020 7776 6550
Ruari McGirr
Bishopsgate Communications Limited Tel: 020 7430 1600
Maxine Barnes
Dominic Barretto
U.S. SECURITIES ACT NOTICE
The ordinary shares to be issued in connection with the proposed transaction or the related equity offering have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States or to, or for the account or benefit of, a U.S. person (as such term is defined in Regulations S under the Securities Act) absent registration or an applicable exemption from registration under the Securities Act.
ABOUT THE WORLD GAMING GROUP
World Gaming is a UK based holding company whose subsidiaries participate in I-gaming software and e-business. The World Gaming Group is an international developer, licensor, and provider of online gaming products, including casino, sportsbook, and pari-mutuel betting. For more information about the World Gaming Group, visit its main website at www.worldgamingplc.co.uk.
Interactive Systems Inc., a subsidiary of World Gaming is incorporated and operating out of Antigua, licenses its gaming software to third parties for an initial licensing fee and monthly royalties. Alea Software Inc., in participation with the World Gaming Group develops gaming software and web pages.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
We make certain forward-looking statements in this document within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. To comply with the terms of the safe harbor, we note that a variety of factors could cause our actual results and experience to differ substantially from the anticipated results or other expectations expressed in our forward-looking statements. When words and expressions such as: "believes," "expects," "anticipates," "estimates," "plans," "intends," "objectives," "goals," "aims," "projects," "forecasts," "possible," "seeks," "may," "could," "should," "might," "likely," "enable" or similar words or expressions are used in this document, as well as statements containing phrases such as "in our view" "there can be no assurance," "although no assurance can be given" or "there is no way to anticipate with certainty," forward-looking statements are being made. These forward-looking statements speak as of the date of this document.
The forward-looking statements are not guarantees of future performance and involve risk and uncertainties. These risks and uncertainties may affect the operation, performance, development and results of our business and could cause future outcomes to differ materially from those set forth in our forward-looking statements. These statements are based on our current beliefs as to the outcome and timing of future events, and actual results may differ materially from those projected or implied in the forward looking statements. Further, some forward-looking statements are based upon assumptions of future events which may not prove to be accurate. The forward-looking statements involve risks and uncertainties including, without limitation, the risks and uncertainties referred to in our filings with the Securities and Exchange Commission, including our most recent Form 20-F.
We undertake no obligation to publicly update or revise any forward-looking statements as a result of future developments, events and conditions outside of our control. New risk factors emerge from time to time and it is not possible for us to predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ significantly from those forecast in any forward-looking statements. Given these risks and uncertainties, investors should not overly rely or attach undue weight to our forward-looking statements as an indication of our actual future results.
SOURCE World Gaming plc
World Gaming plc: Daniel Moran, Chief Executive, Tel. 1-888-883-0833; Daniel Stewart
& Company: Ruari McGirr, Tel. 020 7776 6550; Bishopsgate Communications Limited:
Maxine Barnes, Dominic Barretto, Tel: 020 7430 1600
http://www.prnewswire.com
Copyright (C) 2005 PR Newswire. All rights reserved.
ALL FUTURE DUPLICATES SUCH AS THOSE BELOW....
... could well result in IHUB jail time... such as is the case at the moment. I deleted all the duplicates in the last 2 days, but IHub won't allow deletions over 48 hours.
Looks like WGMGY (with today's exception) could be nearing breakout mode.
Len
Anyone in th house? Time to break the ATH next week.
Greets from Cologne/Germany
Udo
Here is the NEWS
http://www.worldgaming.com/pressrls.php?page=news/news2004/080904
http://ragingbull.lycos.com/mboard/boards.cgi?board=BB%3AWGMGY&origsymbols=wgmgy
You can finde more information on the RB as well...
buy
the restructuring is taking place right now is it not...the chart doesn't apply to the current situation...hog
Buy...I can't tell the impact of the restructuring with sportbetting...can you help...hog
World Gaming plc announces admission date to AIM
Friday May 6, 7:00 am ET
LONDON, UK, May 6 /PRNewswire-FirstCall/ - World Gaming plc (OTC BB: WGMGY - News), a UK-based Internet-gaming software and e-business services group of companies ("the Company"), is pleased to announce its expected admission to trading its shares on the Alternative Investment Market ("AIM") of the London Stock Exchange commencing May 17, 2005.
Upon completion of an institutional offering, the Company has agreed a placing price of 52.5 pence per share on the placing of pnds stlg 2.5m worth of new ordinary shares with such institutional investors upon admission to AIM.
The Board believes that the key benefit of trading the Company's shares on AIM will be demonstrated through execution of its strategy to potentially find and acquire operators or other related businesses within the industry. The impending AIM listing has given the Company the opportunity to raise capital through institutional investment in the Company's shares together with the ability in the future to strategically use shares traded on the AIM as currency for its acquisitive strategy. It is expected that existing ADR holders will continue to trade their shares on the OTC.BB market; however, they will be invited to transfer their shares to the AIM market should they wish to do so. Existing ADR holders will receive an explanatory memorandum in this regard prior to admission of the Company to AIM.
Corporate background
World Gaming plc is a UK-based I-gaming software and e-business services
World Gaming plc announces admission date to AIM
Friday May 6, 7:00 am ET
LONDON, UK, May 6 /PRNewswire-FirstCall/ - World Gaming plc (OTC BB: WGMGY - News), a UK-based Internet-gaming software and e-business services group of companies ("the Company"), is pleased to announce its expected admission to trading its shares on the Alternative Investment Market ("AIM") of the London Stock Exchange commencing May 17, 2005.
Upon completion of an institutional offering, the Company has agreed a placing price of 52.5 pence per share on the placing of pnds stlg 2.5m worth of new ordinary shares with such institutional investors upon admission to AIM.
The Board believes that the key benefit of trading the Company's shares on AIM will be demonstrated through execution of its strategy to potentially find and acquire operators or other related businesses within the industry. The impending AIM listing has given the Company the opportunity to raise capital through institutional investment in the Company's shares together with the ability in the future to strategically use shares traded on the AIM as currency for its acquisitive strategy. It is expected that existing ADR holders will continue to trade their shares on the OTC.BB market; however, they will be invited to transfer their shares to the AIM market should they wish to do so. Existing ADR holders will receive an explanatory memorandum in this regard prior to admission of the Company to AIM.
Corporate background
World Gaming plc is a UK-based I-gaming software and e-business services
World Gaming plc announces admission date to AIM
Friday May 6, 7:00 am ET
LONDON, UK, May 6 /PRNewswire-FirstCall/ - World Gaming plc (OTC BB: WGMGY - News), a UK-based Internet-gaming software and e-business services group of companies ("the Company"), is pleased to announce its expected admission to trading its shares on the Alternative Investment Market ("AIM") of the London Stock Exchange commencing May 17, 2005.
Upon completion of an institutional offering, the Company has agreed a placing price of 52.5 pence per share on the placing of pnds stlg 2.5m worth of new ordinary shares with such institutional investors upon admission to AIM.
The Board believes that the key benefit of trading the Company's shares on AIM will be demonstrated through execution of its strategy to potentially find and acquire operators or other related businesses within the industry. The impending AIM listing has given the Company the opportunity to raise capital through institutional investment in the Company's shares together with the ability in the future to strategically use shares traded on the AIM as currency for its acquisitive strategy. It is expected that existing ADR holders will continue to trade their shares on the OTC.BB market; however, they will be invited to transfer their shares to the AIM market should they wish to do so. Existing ADR holders will receive an explanatory memorandum in this regard prior to admission of the Company to AIM.
Corporate background
World Gaming plc is a UK-based I-gaming software and e-business services
AIM LISTING ON THE 17.5
http://www.londonstockexchange.com/en-gb/pricesnews/prices/newissues.htm
AIM LISTING ON THE 17.5
http://www.londonstockexchange.com/en-gb/pricesnews/prices/newissues.htm
AIM LISTING ON THE 17.5
http://www.londonstockexchange.com/en-gb/pricesnews/prices/newissues.htm
AIM LISTING ON THE 17.5
http://www.londonstockexchange.com/en-gb/pricesnews/prices/newissues.htm
AIM LISTING ON THE 17.5
http://www.londonstockexchange.com/en-gb/pricesnews/prices/newissues.htm
http://chart.bigcharts.com/bc3/intchart/frames/chart.asp?symb=wgmgy&compidx=aaaaa%3A0&ma=6&a...
We are over the EMA 9, 18 and 27 again, MACD is positiv
World Gaming plc reports results for the year ended December 31, 2004
Tuesday May 3, 7:00 am ET
LONDON, May 3 /PRNewswire-FirstCall/ - World Gaming plc (OTC BB: WGMGY - News), a UK-based Internet-gaming software and e-business services group of companies ("the Company"), is pleased to report financial and operating results for the year ended December 31, 2004.
Highlights
- Profit from operations for the year of $5,183,000 vs. $2,127,000 for
the same period last year.
- Royalty revenue from continuing licensees (excluding Sportingbet) up
41% percent in 2004 compared to prior year.
- Operating expenses down 31% in 2004 compared to prior year.
- Completion of Joint Venture transaction with Sportingbet resulting in
extraordinary gain of $12,187,000 in 2004 and further minimum
$16,000,000 committed development spend.
- Net working capital of $14,866,000 at December 31, 2004 vs. ($126,000)
at December 31, 2003.
- Nil debt at December 31, 2004 vs. $2,944,000 at December 31, 2003.
- Phased software re-architecture project expected completion mid-2005.
- Company admission to AIM of the London Stock Exchange expected
May 2005.
Fiscal results
Net income from operations for the year ended December 31, 2004 was $5,183,000 or $0.16 per participating ordinary share compared to net income from operations of $2,127,000 or $0.05 per participating ordinary share last year. Participating ordinary shares exclude the 13.6m shares effectively cancelled as a result of the transaction with Sportingbet as described to Shareholders in earlier announcements.
Revenue from continuing licensees (excluding Sportingbet) grew 41.0% during the year ended December 31, 2004 when compared to the year ended December 31, 2003. This organic growth made a significant contribution to the total royalty revenue in the year of $15,227,000 compared to royalty revenue of $15,856,000 in 2003. The overall decline in royalty revenue of 4.0% in the year was a result of the transaction with Sportingbet, where effective October 1, 2004, the Company no longer receives royalty revenues from this customer.
Gross wagering volumes on the Company's servers increased 63% during the year ended December 31, 2004 to $6.2 billion when compared to $3.8 billion in the prior year. Growth in wagering volume from continuing licensees (excluding Sportingbet) was 73% in the year.
Subsequent to the end of the year, growth in revenues from continuing licensees has continued to exceed the growth levels of 2004.
Total revenues for the year ended December 31, 2004 were $16,288,000 compared to $17,698,000 for the year ended December 31, 2003. Excluding revenues from transaction processing and hosting fees described below, this represented a 4.3% decline in revenues for the year. This decline is directly attributable to the cancellation of Sportingbet royalties in the fourth quarter of 2004 as a result of the Joint Venture transaction previously disclosed.
In February 2004 the Company closed its transaction processing and customer service divisions, migrating licensees that utilized these services to an industry leading supplier. For comparative purposes, $1,765,000 of transaction processing fee revenue was included in total revenues for the year ended December 31, 2003 compared to $423,000 in the year ended December 31, 2004. Direct costs associated with these divisions exceeded fee revenue in every quarter up to the date of its closure.
Effective October 1, 2004 Sportingbet now pays the Company for its usage of the Company's hosting facility. The payment is on a cost plus 10% basis and amounted to revenue of $621,000 in the year compared to $nil in 2003.
The gross margin for the year was 88.5% compared to 87.9% for the year ended December 31, 2003. The increase resulted in a more profitable revenue mix due to the closure of the transaction processing and customer service divisions in February 2004 and the recovery of hosting fees attributable to Sportingbet for continuing to host their data on the Company's servers.
As consideration for no longer paying the Company royalties, Sportingbet paid total cash consideration of $10m ($3m received on completion, $3m received on March 1, 2005 and $4m is due by November 1, 2005), cancelled its $900,000 convertible debt with the Company and effectively cancelled its interest in 29.6% of the Company's equity giving rise to an extraordinary gain in the year of $12,187,000. In addition, Sportingbet is committed to spending a minimum of $16,000,000 on development over a four year period commencing October 1, 2004 and will pay a further $3,000,000 if the Joint Venture arrangement is terminated. The Company retains its right to the most up-to- date version of the software throughout the term of the Joint Venture arrangement or at such time as it may be terminated.
Operating expenses decreased 31.2% to $9,234,000 during the year ended December 31, 2004 compared to $13,421,000 for the same period last year. The primary contributors to this reduction were:
- The removal of development costs effective October 1, 2004 as a result
of the transaction with Sportingbet. These costs were approximately
$1.1m per quarter;
- Depreciation charges declined $513,000 or 26% when compared to the
same period last year;
- An 18.8% reduction in other corporate overhead or a reduction of
$1,914,000, when compared to the same period last year.
Selected statement of operations information (unaudited, in thousands)
For the year ended
December 31,
2004 2003
--------------------------
Net Sales $ 16,288 $ 17,698
Gross Profit 14,417 15,548
Operating Expenses 9,234 13,421
Net Income after extraordinary items 17,370 2,958
Operational update
The Company remains committed to delivering a comprehensive and robust product suite to its licensees. Development during the first two quarters of the Joint Venture arrangement with Sportingbet have concentrated on a re-architecture of the Company's software expected to be phased in from mid- 2005. This re-architecture will allow greater flexibility in product offerings to new licensees and greater ease for 'plug-in' of new products. A single integrated player account will remain across the entire product suite. In addition, modularity across the Company's product suite will mean more flexible and efficient development efforts.
Consistent with the Board's strategies, the Company is continuing with its licensing efforts, is proceeding with listing the Company's shares on The Alternative Investment Market (AIM) of the London Stock Exchange and exploring business opportunities through acquisition.
In April 2005, the Company announced that two new licensees had been signed together with a five year extension to one of its largest licensees' license agreements. Due to confidentiality arrangements, the Company is unable to specifically refer to these licensees; however, the new licensees have significant experience in the on-line gaming sector. The Company expects that they will participate in the significant growth in wagering volumes that the Company's existing licensees are experiencing and will begin to return material revenues during the US winter sports season of 2005/2006.
Consistent with the Board's stated timetable, the completion date for admission to trading the Company's shares on AIM is expected to be May, 2005. The Board believes that the key benefit of trading the Company's shares on AIM would be demonstrated through execution of its strategy to potentially acquire operators or other related businesses within the industry. An AIM listing is expected to give the Company the opportunity to raise capital through institutional investment in the Company's shares together with the ability to use shares traded on the AIM as currency for its acquisitive strategy. It is expected that existing ADR holders will continue to trade their shares on the OTC.BB market; however, they would be invited to transfer their shares to the AIM market should they wish to do so. It is expected that existing ADR holders will receive an explanatory memorandum in this regard prior to admission of the Company to AIM.
Daniel Moran, World Gaming's CEO commented:
"The Company is profitable, debt free and has strong cash reserves. Together with the listing on AIM we believe the Company is well positioned to successfully execute our strategies. We have a proven management team that is highly motivated in taking the Company to the next stage of development. I am delighted with the progress made in 2004 which is demonstrated by results, both financial and strategic."
SEC filing
World Gaming plc reports results for the year ended December 31, 2004
Tuesday May 3, 7:00 am ET
LONDON, May 3 /PRNewswire-FirstCall/ - World Gaming plc (OTC BB: WGMGY - News), a UK-based Internet-gaming software and e-business services group of companies ("the Company"), is pleased to report financial and operating results for the year ended December 31, 2004.
Highlights
- Profit from operations for the year of $5,183,000 vs. $2,127,000 for
the same period last year.
- Royalty revenue from continuing licensees (excluding Sportingbet) up
41% percent in 2004 compared to prior year.
- Operating expenses down 31% in 2004 compared to prior year.
- Completion of Joint Venture transaction with Sportingbet resulting in
extraordinary gain of $12,187,000 in 2004 and further minimum
$16,000,000 committed development spend.
- Net working capital of $14,866,000 at December 31, 2004 vs. ($126,000)
at December 31, 2003.
- Nil debt at December 31, 2004 vs. $2,944,000 at December 31, 2003.
- Phased software re-architecture project expected completion mid-2005.
- Company admission to AIM of the London Stock Exchange expected
May 2005.
Fiscal results
Net income from operations for the year ended December 31, 2004 was $5,183,000 or $0.16 per participating ordinary share compared to net income from operations of $2,127,000 or $0.05 per participating ordinary share last year. Participating ordinary shares exclude the 13.6m shares effectively cancelled as a result of the transaction with Sportingbet as described to Shareholders in earlier announcements.
Revenue from continuing licensees (excluding Sportingbet) grew 41.0% during the year ended December 31, 2004 when compared to the year ended December 31, 2003. This organic growth made a significant contribution to the total royalty revenue in the year of $15,227,000 compared to royalty revenue of $15,856,000 in 2003. The overall decline in royalty revenue of 4.0% in the year was a result of the transaction with Sportingbet, where effective October 1, 2004, the Company no longer receives royalty revenues from this customer.
Gross wagering volumes on the Company's servers increased 63% during the year ended December 31, 2004 to $6.2 billion when compared to $3.8 billion in the prior year. Growth in wagering volume from continuing licensees (excluding Sportingbet) was 73% in the year.
Subsequent to the end of the year, growth in revenues from continuing licensees has continued to exceed the growth levels of 2004.
Total revenues for the year ended December 31, 2004 were $16,288,000 compared to $17,698,000 for the year ended December 31, 2003. Excluding revenues from transaction processing and hosting fees described below, this represented a 4.3% decline in revenues for the year. This decline is directly attributable to the cancellation of Sportingbet royalties in the fourth quarter of 2004 as a result of the Joint Venture transaction previously disclosed.
In February 2004 the Company closed its transaction processing and customer service divisions, migrating licensees that utilized these services to an industry leading supplier. For comparative purposes, $1,765,000 of transaction processing fee revenue was included in total revenues for the year ended December 31, 2003 compared to $423,000 in the year ended December 31, 2004. Direct costs associated with these divisions exceeded fee revenue in every quarter up to the date of its closure.
Effective October 1, 2004 Sportingbet now pays the Company for its usage of the Company's hosting facility. The payment is on a cost plus 10% basis and amounted to revenue of $621,000 in the year compared to $nil in 2003.
The gross margin for the year was 88.5% compared to 87.9% for the year ended December 31, 2003. The increase resulted in a more profitable revenue mix due to the closure of the transaction processing and customer service divisions in February 2004 and the recovery of hosting fees attributable to Sportingbet for continuing to host their data on the Company's servers.
As consideration for no longer paying the Company royalties, Sportingbet paid total cash consideration of $10m ($3m received on completion, $3m received on March 1, 2005 and $4m is due by November 1, 2005), cancelled its $900,000 convertible debt with the Company and effectively cancelled its interest in 29.6% of the Company's equity giving rise to an extraordinary gain in the year of $12,187,000. In addition, Sportingbet is committed to spending a minimum of $16,000,000 on development over a four year period commencing October 1, 2004 and will pay a further $3,000,000 if the Joint Venture arrangement is terminated. The Company retains its right to the most up-to- date version of the software throughout the term of the Joint Venture arrangement or at such time as it may be terminated.
Operating expenses decreased 31.2% to $9,234,000 during the year ended December 31, 2004 compared to $13,421,000 for the same period last year. The primary contributors to this reduction were:
- The removal of development costs effective October 1, 2004 as a result
of the transaction with Sportingbet. These costs were approximately
$1.1m per quarter;
- Depreciation charges declined $513,000 or 26% when compared to the
same period last year;
- An 18.8% reduction in other corporate overhead or a reduction of
$1,914,000, when compared to the same period last year.
Selected statement of operations information (unaudited, in thousands)
For the year ended
December 31,
2004 2003
--------------------------
Net Sales $ 16,288 $ 17,698
Gross Profit 14,417 15,548
Operating Expenses 9,234 13,421
Net Income after extraordinary items 17,370 2,958
Operational update
The Company remains committed to delivering a comprehensive and robust product suite to its licensees. Development during the first two quarters of the Joint Venture arrangement with Sportingbet have concentrated on a re-architecture of the Company's software expected to be phased in from mid- 2005. This re-architecture will allow greater flexibility in product offerings to new licensees and greater ease for 'plug-in' of new products. A single integrated player account will remain across the entire product suite. In addition, modularity across the Company's product suite will mean more flexible and efficient development efforts.
Consistent with the Board's strategies, the Company is continuing with its licensing efforts, is proceeding with listing the Company's shares on The Alternative Investment Market (AIM) of the London Stock Exchange and exploring business opportunities through acquisition.
In April 2005, the Company announced that two new licensees had been signed together with a five year extension to one of its largest licensees' license agreements. Due to confidentiality arrangements, the Company is unable to specifically refer to these licensees; however, the new licensees have significant experience in the on-line gaming sector. The Company expects that they will participate in the significant growth in wagering volumes that the Company's existing licensees are experiencing and will begin to return material revenues during the US winter sports season of 2005/2006.
Consistent with the Board's stated timetable, the completion date for admission to trading the Company's shares on AIM is expected to be May, 2005. The Board believes that the key benefit of trading the Company's shares on AIM would be demonstrated through execution of its strategy to potentially acquire operators or other related businesses within the industry. An AIM listing is expected to give the Company the opportunity to raise capital through institutional investment in the Company's shares together with the ability to use shares traded on the AIM as currency for its acquisitive strategy. It is expected that existing ADR holders will continue to trade their shares on the OTC.BB market; however, they would be invited to transfer their shares to the AIM market should they wish to do so. It is expected that existing ADR holders will receive an explanatory memorandum in this regard prior to admission of the Company to AIM.
Daniel Moran, World Gaming's CEO commented:
"The Company is profitable, debt free and has strong cash reserves. Together with the listing on AIM we believe the Company is well positioned to successfully execute our strategies. We have a proven management team that is highly motivated in taking the Company to the next stage of development. I am delighted with the progress made in 2004 which is demonstrated by results, both financial and strategic."
SEC filing
World Gaming plc reports results for the year ended December 31, 2004
Tuesday May 3, 7:00 am ET
LONDON, May 3 /PRNewswire-FirstCall/ - World Gaming plc (OTC BB: WGMGY - News), a UK-based Internet-gaming software and e-business services group of companies ("the Company"), is pleased to report financial and operating results for the year ended December 31, 2004.
Highlights
- Profit from operations for the year of $5,183,000 vs. $2,127,000 for
the same period last year.
- Royalty revenue from continuing licensees (excluding Sportingbet) up
41% percent in 2004 compared to prior year.
- Operating expenses down 31% in 2004 compared to prior year.
- Completion of Joint Venture transaction with Sportingbet resulting in
extraordinary gain of $12,187,000 in 2004 and further minimum
$16,000,000 committed development spend.
- Net working capital of $14,866,000 at December 31, 2004 vs. ($126,000)
at December 31, 2003.
- Nil debt at December 31, 2004 vs. $2,944,000 at December 31, 2003.
- Phased software re-architecture project expected completion mid-2005.
- Company admission to AIM of the London Stock Exchange expected
May 2005.
Fiscal results
Net income from operations for the year ended December 31, 2004 was $5,183,000 or $0.16 per participating ordinary share compared to net income from operations of $2,127,000 or $0.05 per participating ordinary share last year. Participating ordinary shares exclude the 13.6m shares effectively cancelled as a result of the transaction with Sportingbet as described to Shareholders in earlier announcements.
Revenue from continuing licensees (excluding Sportingbet) grew 41.0% during the year ended December 31, 2004 when compared to the year ended December 31, 2003. This organic growth made a significant contribution to the total royalty revenue in the year of $15,227,000 compared to royalty revenue of $15,856,000 in 2003. The overall decline in royalty revenue of 4.0% in the year was a result of the transaction with Sportingbet, where effective October 1, 2004, the Company no longer receives royalty revenues from this customer.
Gross wagering volumes on the Company's servers increased 63% during the year ended December 31, 2004 to $6.2 billion when compared to $3.8 billion in the prior year. Growth in wagering volume from continuing licensees (excluding Sportingbet) was 73% in the year.
Subsequent to the end of the year, growth in revenues from continuing licensees has continued to exceed the growth levels of 2004.
Total revenues for the year ended December 31, 2004 were $16,288,000 compared to $17,698,000 for the year ended December 31, 2003. Excluding revenues from transaction processing and hosting fees described below, this represented a 4.3% decline in revenues for the year. This decline is directly attributable to the cancellation of Sportingbet royalties in the fourth quarter of 2004 as a result of the Joint Venture transaction previously disclosed.
In February 2004 the Company closed its transaction processing and customer service divisions, migrating licensees that utilized these services to an industry leading supplier. For comparative purposes, $1,765,000 of transaction processing fee revenue was included in total revenues for the year ended December 31, 2003 compared to $423,000 in the year ended December 31, 2004. Direct costs associated with these divisions exceeded fee revenue in every quarter up to the date of its closure.
Effective October 1, 2004 Sportingbet now pays the Company for its usage of the Company's hosting facility. The payment is on a cost plus 10% basis and amounted to revenue of $621,000 in the year compared to $nil in 2003.
The gross margin for the year was 88.5% compared to 87.9% for the year ended December 31, 2003. The increase resulted in a more profitable revenue mix due to the closure of the transaction processing and customer service divisions in February 2004 and the recovery of hosting fees attributable to Sportingbet for continuing to host their data on the Company's servers.
As consideration for no longer paying the Company royalties, Sportingbet paid total cash consideration of $10m ($3m received on completion, $3m received on March 1, 2005 and $4m is due by November 1, 2005), cancelled its $900,000 convertible debt with the Company and effectively cancelled its interest in 29.6% of the Company's equity giving rise to an extraordinary gain in the year of $12,187,000. In addition, Sportingbet is committed to spending a minimum of $16,000,000 on development over a four year period commencing October 1, 2004 and will pay a further $3,000,000 if the Joint Venture arrangement is terminated. The Company retains its right to the most up-to- date version of the software throughout the term of the Joint Venture arrangement or at such time as it may be terminated.
Operating expenses decreased 31.2% to $9,234,000 during the year ended December 31, 2004 compared to $13,421,000 for the same period last year. The primary contributors to this reduction were:
- The removal of development costs effective October 1, 2004 as a result
of the transaction with Sportingbet. These costs were approximately
$1.1m per quarter;
- Depreciation charges declined $513,000 or 26% when compared to the
same period last year;
- An 18.8% reduction in other corporate overhead or a reduction of
$1,914,000, when compared to the same period last year.
Selected statement of operations information (unaudited, in thousands)
For the year ended
December 31,
2004 2003
--------------------------
Net Sales $ 16,288 $ 17,698
Gross Profit 14,417 15,548
Operating Expenses 9,234 13,421
Net Income after extraordinary items 17,370 2,958
Operational update
The Company remains committed to delivering a comprehensive and robust product suite to its licensees. Development during the first two quarters of the Joint Venture arrangement with Sportingbet have concentrated on a re-architecture of the Company's software expected to be phased in from mid- 2005. This re-architecture will allow greater flexibility in product offerings to new licensees and greater ease for 'plug-in' of new products. A single integrated player account will remain across the entire product suite. In addition, modularity across the Company's product suite will mean more flexible and efficient development efforts.
Consistent with the Board's strategies, the Company is continuing with its licensing efforts, is proceeding with listing the Company's shares on The Alternative Investment Market (AIM) of the London Stock Exchange and exploring business opportunities through acquisition.
In April 2005, the Company announced that two new licensees had been signed together with a five year extension to one of its largest licensees' license agreements. Due to confidentiality arrangements, the Company is unable to specifically refer to these licensees; however, the new licensees have significant experience in the on-line gaming sector. The Company expects that they will participate in the significant growth in wagering volumes that the Company's existing licensees are experiencing and will begin to return material revenues during the US winter sports season of 2005/2006.
Consistent with the Board's stated timetable, the completion date for admission to trading the Company's shares on AIM is expected to be May, 2005. The Board believes that the key benefit of trading the Company's shares on AIM would be demonstrated through execution of its strategy to potentially acquire operators or other related businesses within the industry. An AIM listing is expected to give the Company the opportunity to raise capital through institutional investment in the Company's shares together with the ability to use shares traded on the AIM as currency for its acquisitive strategy. It is expected that existing ADR holders will continue to trade their shares on the OTC.BB market; however, they would be invited to transfer their shares to the AIM market should they wish to do so. It is expected that existing ADR holders will receive an explanatory memorandum in this regard prior to admission of the Company to AIM.
Daniel Moran, World Gaming's CEO commented:
"The Company is profitable, debt free and has strong cash reserves. Together with the listing on AIM we believe the Company is well positioned to successfully execute our strategies. We have a proven management team that is highly motivated in taking the Company to the next stage of development. I am delighted with the progress made in 2004 which is demonstrated by results, both financial and strategic."
SEC filing
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