EasyBets Sold For $32.5 Million
Published: Friday, May 27, 2005 Online-Casinos.com
EASYBETS SOLD FOR $32.5 MILLION
And BetonSports plans more acquisitions...
Shares in online gaming group BetonSports took on new life this week following
a bullish statement and a fresh acquisition.
Despite results showing
turnover for the 12 months to 6 February 2005 had slipped, the statement appeared
to encourage investors. Turnover fell from $1,252m in 2004 to 1,104m in 2005 and
the gross margin shrank from $90.2 to $72.5m. Net profit before tax fell a hefty$3.7m
from $27m to $13.3m.
The group, which raised $44 million from its float
on London's AIM last July, said the gross win margin on the sports book has returned
to historic trends and is ahead of forecast.
The launch of poker operations
and the repositioning of the online casino are progressing well, it added.
BetonSports revealed that it has acquired a significant foothold in the Asian
market by buying Easybets.com in a deal worth some $32.5 million, made up of an
initial consideration of $15 million, comprising $5 million in shares and $10
million in cash. Easybet's owners will be entitled to 43.5 percent of annual profits
over the next three years providing these exceed $3 million.
Easybets
currently has some 100,000 customers predominantly in Asia, with over 70 percent
in China, and 95 percent of business transacted over the Internet. The company
reported a net profit of $3.2 million for the year ending December 2004 from a
turnover of $255 million. Its chief executive Tim Lambe has been retained to continue
expansion into the Asian region.
David Carruthers, chief executive of
BetonSports, said it was the first of several potential acquisitions planned for
this year.
The group announced the appointment of specialist small cap
adviser and ex-Beeson Gregory man Chris Galloway to the BetonSports board.
