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| Chinese Proverb |
| He who asks is a fool for five minutes, but he who does not ask remains a fool forever. |
| EBet bets on profits next year |
1/28/2001 EBet expects sales to rise in the coming financial year Internet gaming concern eBet Ltd expects its sales to continue to rise as the company heads into profitability next financial year. EBet recently reported consolidated operating revenue of $2.5 million for the six months to December 31, 2000 - around $300,000 more than the result for the entire 1999/2000 year and a 307 percent increase on the previous corresponding period. EBet managing director Keith Cullen stated that despite eBet?s recent sale of their Internet casino subsidiary and casino website, following the imposition of the Australian government's internet gambling moratorium, the company expected the strong upward trend in sales to continue through the opening of new markets and its acquisition strategy. "We're certainly forecasting, even with our strong revenue growth, that this year will be a full year loss," said Cullen. EBet had reported a net loss in 1999/2000 too, to the sum of $10.78 million but Cullen expressed confidence that the current financial year would be their last reporting at a loss. "The business has the capacity to sustain the sorts of revenue growth percentages it's seeing without significant increases in overhead, and that's going to enable us to become a very profitable business in the near term," Cullen said. According to Cullen, eBet was disappointed it had to sell its Internet gaming operation but said the moratorium did not affect eBet's core online sports and race betting business. However, the company has retained the right to buy back the operation from VIP Casino operator Cyprus Management Company once the moratorium ends and would still receive payments through a trademark licensing agreement. Ebet?s gaming division continues to remain profitable and in fact, according to Cullen, the gaming system division had contributed significantly to revenue growth in the first half, accounting for around 75-80 per cent of total revenue. The division also includes smartcard cashless gaming solutions and wide-area linked jackpot systems and had benefited from its expansion into New Zealand, Singapore and Greece. |
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