Melbourne, Nov 20, 2007 AEST (ABN Newswire) - Local and international gaming players are running their rulers over the publicly listed International All Sports (ASX: IAS), Australia's first licensed international bookmaker that takes bets on sporting events, horse racing and politics around the globe.
Chairman Barry Coulter said major companies in the industry had expressed interest in acquiring IAS (ASX Code: IAS). Confidentiality agreements have been signed and the board would "seriously consider" any genuine offer. The Board will keep shareholders informed on future developments in accordance with the disclosure requirements of the ASX.
He says: "After 10 years' trading, IAS has reached critical mass with global turnover passing $1 billion, EBIDTA growing strongly and a strong balance sheet with no external borrowings."
IAS has traded between 35 cents and 40 cents in the past month. Well-known bookmaker Mark Read is the biggest shareholder in IAS with a 27% stake.
The expressions of interest come on the back of an exciting first five months of the 2008 financial year, culminating in a highly successful Melbourne Cup day that saw IAS handle about 120,000 bets and take over $6 million in wagers.
Coulter says: "In the five months to November 11 2007, EBITDA is $2.1 million, more than double the budgeted EBITDA of $879,000.
"The standout performer has been IASbet.com, the Australian flagship. It's EBITDA to November 11 2007 of $6.7 million compares more than favorably with the full year's EBIDTA of $8.6 million to June 30 2007. IASbet.com now boasts nearly 20,000 customers.
"However, our international brand Canbet continues to incur losses as a result of its start-up phase in its new markets in Asia and Europe. It's attracting the smart money while still building critical mass and general market awareness.
But IAS maintains the push overseas is critical to our long-term future." Coulter, who was addressing IAS's annual general meeting in Melbourne today, said the results to June 30 2007 had been adversely affected by three one-off events; a refund of $7 million to the Commonwealth Bank (plus $1.3 million in legal fees), a $1.8 million write-off (including prepaid marketing) of the American business after the passing of the US Unlawful Internet Gaming Enforcement Act made the taking of Internet bets there illegal and a forex revaluation of $800,000.
Coulter says: "We can now close the book on the issues surrounding the Commonwealth Bank refund, as well as the US business.
"But they did come at a cost. After taking into account these abnormals, IAS reported a loss of $9.4 million compared with a profit of $841,000 in the 12 months to June 30 2006.
"But despite these hurdles, there were some real positives to take out of the 2007 results. Global turnover passed $1 billion for the first time in 2007 - a 31% gain on 2006 - with betting on international horse racing and soccer the key drivers.
"At the same time revenue increased 16% to $45.3 million, and over the past three years operating revenue has grown 63% - strong evidence of the appeal of our product to the public."
IAS's has a strong balance sheet with no external borrowings. And cash reserves at November 11 stood at $27.7 million of which $19.7 represented clients' funds deposited for future betting.
About International All Sports:
International All Sports Limited (IAS) is a publicly listed company on the Australian Stock Exchange. It is Australia's first licensed international bookmaker with offices in Australia and England.
IAS was established by bookmaker Mark Read in 1996, who brings more than 30 years' wagering expertise to the enterprise.
IASbet is a wholly owned subsidiary of IAS and is licensed by the Northern Territory Government and Queensland Racing in Australia. It offers 24/7 access to Internet and telephone betting on international horse racing, harness and greyhound racing, world sport and North American sport and entertainment events.
Contact
IAS chairman
Barry Coulter:
TEL: +61-418-894-767
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