Betcorp, the Australian parent company of sportsbook BetWWTS, has appointed advisers in advance of a possible listing on the London Stock Exchange.
Betcorp is currently listed on the Australian Stock Exchange, but has retained UK-based KBC Peel Hunt to advise on a possible dual listing.
The firm has had a torrid time on the ASX, with the firm never rocovering from a 2004 that saw shares more than halve in value.
It is currently trading at AUS$0.24, giving the firm a market valuation of approx US$47m.
And although no decision has been made by the Betcorp board it is known the firm’s executive team feels it is likely to receive a better reception in the UK.
Online gaming stocks on the LSE have performed strongly in the past twelve months with shares in PartyGaming and Empire Online climbing sharply over the past three months.
Betcorp also posted strong results for the first half of 2005, with a return to profitability following a disastrous 2004.
It said the acquisition of Sinsational Entertainment, the owner of cybersportsbook, had been a “catalyst” for change.
The group’s total headcount has been reduced from 179 to 108, and marketing and IT development has been moved to Toronto from Antigua.
The cost cutting exercise means operating EBIDTA profits for the six months ended June 2005 were up US$2.2m compared to a loss of US$1.5m in the same period last year.
The firm said sportsbook margin had improved to 4.13% and said both casino and poker revues had grown sharply, at US$2.5m and US$0.6m respectively.
Betcorp put the improvement in margin down to limits on “knowledgeable” clients and an increased focus on the recreational market.
The firm said this strategy would continue in the second half of the year.
source : egr magazine
