The online gaming group has received the consent of the Australian Stock Exchange to delist from the ASX with effect from 31 October 2006. From this date, Betcorp\’s shares will be traded only on London\’s AIM. The company also completed the acquisition of Curacao-based Oasis and provided a trading update for the first six months of 2006.
Since Betcorp was admitted to AIM on March 2006, it has become clear that there is insufficient liquidity in the company’s shares to support two stock exchange listings. Currently, circa 47% of the total issued share capital is held outside Australia and the company\’s Board believes that the interests of all shareholders will be better served by moving the company’s primary listing from Australia to the UK.
Established in 1997, Oasis offers telephone and internet sports betting and internet casino to a recreational client base of approximately 56,000 registered customers, of whom over 5,500 were active during the last year.
In the 12 months ended 30 June 2006, Oasis reported a net income of $1.3 million on unaudited gross revenue of $7.4 million (sports $3.6 million, casino $3.8 million) and a turnover of $278 million (sports $61 million, casino $217 million).
Following the migration of Oasis onto the Betcorp operating infrastructure, the London-listed group expects to make annual net operating cost savings of over $1 million by fully integrating its bookmaking, customer service, IT, finance and marketing resources. The Board of Betcorp expects that the net contribution to the group’s earnings will represent an acquisition multiple of approximately four times.
“Oasis represents an excellent acquisition at an attractive valuation. Betcorp’s ability to integrate acquired companies quickly and reliably means that they are immediately earnings accretive. Oasis clients will benefit from day one from Betcorp’s poker room and its wider range of casino games and sports betting opportunities,” commented Colin Walker, CEO of Betcorp.
Betcorp\’s total gross revenue in the first half of 2006 was up 75% year on year to $22m. Active customers during the period were up 25% to 21,518, while new funded accounts were up 28% to 8,337.
Sports betting revenues were up 42% to $13.4m with an improved sports betting margin of 6.72% (H1 2005: 4.13%). Casino revenues were up 100% to 5.0m, while poker rake was up five-fold to $3.5m.
In separate news, Centrebet debuted on the Australian Stock Exchange and closed its first trading day stable at $2.00.
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