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ebet solidifies its operational efficiencies

  1. salus

    420 posts.
    ASX/NZX ANNOUNCEMENT 9 SEPTEMBER 2003

    Continued Growth For eBet as Mounties Signs Up for EPS
    And Approval of New Microsoft SQL Version of "EPS"


    Leading gaming technology company eBet Limited
    today announced that it had received NSW-regulatory
    approval for its latest gaming systems offering, the Microsoft SQL-based version of its integrated card based "cashless" gaming system known as EPS. It added that more leading NSW gaming venues had recently purchased EPS, including one of the state’s argest and most successful venues, Mount Pritchard & District Community Club, known as Mounties (600 achines).

    Mounties CEO, Mr. Greg Pickering said, "Our decision to install EPS goes well beyond its card-based cashless functionality". "EPS is clearly the most sophisticated integrated analysis, membership management, promotions and loyalty system available". He added, "eBet's commitment to product support and evolution gives us the confidence that this is an investment that we'll be seeing a return on for many many years".

    Mounties joins Central Coast Leagues Club (450 achines), Reveseby Workers Club (490 machines), Guildford Leagues Club (280 machines), Umina Beach Bowls (105 machines) and Illawarra Leagues (115 achines) who have also recently purchased EPS. eBet Managing director, Mr. Keith Cullen, said that, whilst ecently announced tax hikes for NSW clubs were a negative for the industry because of the impact they will have on the social and community benefits that clubs currently provide, they had not slowed sales of EPS. He said the installation of EPS presented venues of all sizes an opportunity to significantly reduce verheads whilst improving customer service, a key factor driving sales. The above list of venues adds to success earlier this year with new sites joining the growing list of eBet customers including Easts Leagues (550 machines), Kingswood Sports (100 machines), Queanbeyan Leagues (80 machines), Lismore Workers (180 machines) and others. eBet is also achieving success with major system upgrades for Turbo customers, with these venues including Wests Illawarra (280 machines), Wests Campbelltown (320 machines), erkeley Sports (120 machines), St Johns Park Bowling Club (320 machines), Parramatta Leagues Club (470 machines), Tattersalls Club (375 machines), Club Merrylands (180 machines) and others. Many of these venues will now upgrade further to the newly approved SQL version of EPS.

    The company said that the new release of EPS was the culmination of several years of research, development and market testing and that it believed that EPS was now the most sophisticated integrated gaming solution available anywhere in the world. Managing director, Keith Cullen, said that the move to SQL provided significantly improved stability and scalability for gaming venues of all sizes and established the platform for the rollout of EPS to the largest of gaming venues in international markets like the US. Mr. Cullen said that, in addition to overseas expansion opportunities, ignificant further growth remained in Australia, in particular in NSW. "Whilst we have enjoyed excellent sales growth over the past 6-9 months, with new sales of EPS and major upgrades to more than 6,200 machines, there is a long way to go".

    "In our existing NSW customer base alone there are opportnuites for major upgrades to a further 28,000 or more, with another 65,000 or so machines currently using dated systems from other vendors or without systems altogether". Mr. Cullen added, "As the rollout of EPS continues, our recurring revenue is building, ensuring we are able to sustain and improve our support and development structure to provide our customers with world-class service and products. "We see this in turn translating to long term, sustainable profitability for our shareholders".

    "It has been a long road, with significant hurdles and delays along the way. FY2003 in particular was a difficult year as we devoted considerable resource
    and finances to acquiring Turbo and merging the businesses and technologies", said Mr. Cullen. "In taking substantial write downs at 30 June 2003, restructuring
    the company, and disposing of our sports and race betting business we believe that bottom line losses are now behind us however".

    eBet announced previously that it was EBITDA positive by around $1.3 million for the Half Year to 30 June 2003, its first full reporting period since acquiring Turbo
    Bonus. This was a significant turnaround from an EBITDA of negative $1.7 million for the 31 December 2002 Half Year. It said that much of its growth had come in the last Quarter of the financial year as it started to realize the benefits of the Turbo acquisition. The company subsequently announced that it would
    implement an operational and balance sheet restructure at 30 June 2003, which included the disposal of its sports and race betting operation, Sports Acumen, and write downs of intangibles of around $7.5 million. It said these changes would reduce the burden of depreciation and amortisation for FY2004 by around $2.5 million, positioning the company for the adoption of international
    accounting standards and for bottom line profitability in FY2004. Final FY2003 audited results are due for release early next week with a loss of around $12 million anticipated, inclusive of one off write-downs and restructuring charges. Mr. Cullen concluded, "Through meeting past challenges we have now built a
    system and a company structure that the gaming industry is recognizing as second-to-none and they are rewarding us with their custom and support. "We
    believe our growth trend will continue and improve. "We have now positioned the company for bottom line profitability in FY2004 and for serious growth into key
    international markets at the appropriate time."

    EBT is one of the world’s largest gaming systems companies with more than 450 customers who collectively operate more than 40,000 gaming machines. Its cashless gaming systems, player tracking and loyalty systems and data management solutions are installed in leading gaming venues in Australia, New Zealand, the Philippines, Greece and Singapore. eBet Online develops and supports Internet-based wagering systems for licensed gaming operators in international markets. Its key customers are the New Zealand TAB and Penn National Gaming, Inc. (NASDAQ: PENN).
    eBet also owns 100% of ACT-based sports and race betting company, Sports Acumen Pty Ltd, which operates an Internet sports and race wagering service at and is the subject of this release









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