|Betcorp, the Australian-listed Internet gambling operator, has announced it is to list in London under the Alternative Investment Market’s fast-track procedures. |
The group, which has appointed KBC Peel Hunt as adviser, said it was undaunted by the volatility of Internet gambling stocks in recent weeks. It plans to list on AIM shortly after publication of its full-year results in February.
Colin Walker, chief executive, said: “There has been a high level of interest and liquidity on AIM for gaming sector stocks and the valuation of stocks in this sector has been consistently higher than typically seen in Australia.”
The company has a market capitalisation of about GBP 30 million, which could rise to at least GBP 40 million if it attracted a rating in line with its London-listed peers.
The fast-track procedures allow firms already listed elsewhere to seek a listing without having to publish a prospectus.
The group reported after tax profits of A$3.3 million (US$2.5 million) for the nine month period ending 2 October 2005, compared to a loss of A$13.7 million (US$10 million) for the same period last year.
Colin Walker said: “The group has performed above expectations in the first nine months of the year and we are encouraged by the way the business has responded to management initiatives.”
The company saw a substantial increase in the contribution coming from its gaming products with casino contributing US$4 million, up 38 percent on last year, in the first nine months of 2005 and poker generating US$1.75 million in the first nine months of 2005, of which US$1.1 million was earned in Q3. The average daily gross rake is now approaching US$16,000, equivalent to nearly US$6 million a year.