Poker Financial News.

[James]

New Investors for MGM’s CityCenter Project Likely

Disclosure of the news that the private investment company Colony Capital and Australian casino firm Crown Ltd. were likely to join hands to pump in money in the distressed CityCenter project in Las Vegas made the MGM Mirage shares soar by around 50 per cent recently. It may be mentioned here that the CityCenter project requires around $800 million funds to enable it to avail a supplementary $1.8 billion from bankers to enable it to conclude the building.

In March, MGM’s partner in the venture Dubai World had moved court concerning the partnership stating that considering the fiscal problems faced by its partner, the present approach of the project was just untenable. Subsequently, Dubai World has suspended payment of $100 million for the project scheduled for March. Hence, in March, MGM eventually paid $200 million, including Dubai World’s share with a view to sustain the project.

Colony Capital as well as Crown Ltd. possesses fiscal preoccupations in Las Vegas casino assets before now. While Colony presently possesses 75 per cent equity in Stations Casinos, Crown has a 19.6 ownership in Fontainbleu Resorts that is presently setting up another casino on the Vegas Strip. In addition, Crown Ltd. had also shown interest in taking over the Cannery Casino Resorts in 2007, but the deal could not materialize. The finance firm also discarded plans to set up a casino on the previous Wet’n’Wild Waterpark site in Las Vegas.

888 Holdings’ Profits Soar in 2008

Posting strong results during the last fiscal year, 888 Holdings declared a six per cent hike in earnings before taxes for 2008. By and large, the revenue of 888 Holdings, which owns Pacific Poker, increased by 20 per cent. Notwithstanding a four per cent drop in the poker revenue, 888 Holdings appreciably increased its B2B operations by including 14 new customers during the last fiscal year. While the company added Sportech PLC in June 2008, it included four more clients in 2009 and entered into a new agreement with The Racing Post, a publication engaged in horse racing.

Notwithstanding the significant growth during 2008, the company has pointed out that it was not unaffected by the global economic slump. According to 888 Holdings CEO Gigi Levy, while the company experienced a slow growth rate since September last, the brisk devaluation of the euro had a burnt on their business. At the same time Gigi assured the stakeholders that the company had taken several tactical certitudes that would enable the company to come out of the troubled times soon.

Adopting Euro Boosts Playtech’s Revenue Growth

Playtech Ltd., the major online gaming software supplier, has shown up enormous earnings during 2008. While the company reported a revenue increase of 70 per cent, the net profits were reported to be to the tune of 79 per cent following regulations. Interestingly, affected by the global economic slump and the declining euro, Playtech adopted a different approach and this helped the company to overcome the recession blues. According to its new strategy, Playtech has now stopped recording its income in US dollars, but adopted the euro instead. In the process, the company has converted all its past earnings to euro at a quotient of 1 euro: 1.5777 USD marking the highest ever appraisal of the euro since its inception a decade ago. In effect, Playtech has shrunk its past earnings only to raise its present financial results.

In addition to its new strategy vis-à-vis the currency conversion, Playtech’s growth during 2008 was marked by adding four new licensees, incorporating four casino operators in Italy. The company also acquired a 29 per cent involvement in William Hill last December and witnessed around nine per cent increase in its daily income during the first 11 days of the new fiscal year.

[NewLoose]

Very interesting stuff! There should be more news coverage!