nice move in bcl 2day 9.8%

  1. 86 Posts.


    nice move on xcellent vol 2day this coy has a PE of 4 and may pay an 8% fully franked div early next year they have had solid growth in their customer base as well the average customer now holds approx US$314 in their accounts the 4th quarter is normally the strongest for bcl with the american football and baseball seasons starting as well as the european soccer still underway

    quick look at their 3rd quarter

    Highlights:
    • Consolidated Turnover for the quarter of $276.6 million and $753.7 million for the
    9 months to 30 September.
    • EBITDA for the quarter of $2.5 million and $11.7 million for the 9 months to 30
    September.
    • Net Profit for the quarter of $2.3 million and $10.3 million for the 9 months to 30
    September.
    • Earnings per Share for the quarter of 1.7 cents and 10.0 cents for the 9 months to 30
    September.
    • Successful completion of share equity issue, raising $20.4 million net of costs.
    • Early repayment of $24.5 million (US$15.7 million) in Convertible Notes
    (inclusive of accrued interest).
    • Gross Margin (win rate) for the quarter of 3.5% compared to 2.6% in the prior
    corresponding period.
    • 6,713 unique active customers for WWTS during the quarter, an increase of 13%
    against the prior corresponding period.

    Operating performance:
    WWTS
    WWTS continued its strong growth in EBITDA, with an increase of 41% compared to the
    second quarter, and 369% compared to the corresponding period last year.
    The result was driven by a 33% increase in turnover to US$175.4 million in the period
    (US$132.2 million in the prior corresponding period), and a strong bookmaking
    performance which delivered a 3.6% gross win rate (2.6% in the prior corresponding
    period). The results are particularly pleasing given the dominance during the quarter of
    Major League Baseball which has lower margins than other sports.
    Marketing initiatives focussed on building the customer base in anticipation of the
    American Football season have been extremely successful, with 7,252 new registrations
    recorded in the quarter, representing an increase of 106% compared to the prior
    corresponding period.
    An increase in the number of unique active customers to 6,713 players (a rise of 13%) and a
    34% increase in the average stake to $US314 underpinned the continued upward trend in
    turnover. This in part reflects the increased participation of Asian players who typically bet
    higher than average stakes.
    A focus on customer relationship management has been a key factor in the growth of
    customer numbers and turnover. The VIP program for larger players is now fully
    established and enhanced efforts to ‘know-the-customer’ have contributed to the success of
    marketing initiatives.
    WWTS has expanded its business through its network of agent partners in South East Asia,
    where customer demand for North American Sports and European Soccer has been a key
    driver in turnover growth and accounted for 36% of Sports turnover in the year-to-date.
    European Soccer, which commenced in mid-August and runs to May 2004, has attracted
    significant interest from customers, particularly in Asia, with WWTS achieving an excellent
    18% gross win rate in the quarter. Expansion of the betting range for Soccer and other
    sports will continue to be a focus of the WWTS management.
    Richard Barker, Chief Executive Officer of Betcorp, commented:
    ‘’Further improvements in bookmaking and marketing have resulted in a substantial increase in
    EBITDA and the number of active customers in the quarter. Above budget growth is continuing
    into the fourth quarter, which is traditionally the strongest for WWTS.”
    Sportsbet
    Turnover for the quarter increased to $8.2 million, a 14% increase on the second quarter this
    year.
    Most pleasing was the increase in unique active customers to 1,273 in the quarter compared
    to 940 in the second quarter - an increase of 35%. The number of new funded accounts
    established in the period was 368, up 170% on the second quarter.
    The results for Sportsbet are encouraging in light of the transition taking place following the
    appointment of John McDonald as General Manager in August this year. The establishment
    of tighter risk management controls and rebuilding of the customer database should lay the
    foundations for future growth.
    Outlook:
    The third quarter has seen substantial growth in earnings and the customer base, placing
    the Company on track for a strong end to the year. The fourth quarter is typically the
    strongest period as the American Football and Basketball seasons get underway and
    European Soccer continues.
    “The Company has reported an excellent quarter’s result, building on a strong first half and is
    positioned well moving into the fourth quarter. The Company reiterates its intention to declare a
    final dividend in respect of the 2003 full year result early in 2004,’’ stated John Priest, Chairman
    of Betcorp Limited.











    sorry no asx symbol h/c wont regognise it
 
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