The Internet Gaming Corporation, whose share is under suspension for breaking two JSE rules, has reported a headline loss of 3.81c per share for the 12 months to end-February 2001.
<B>Figures at a glance</B>
The Internet Gaming Corporation results for the 12 months to 28 February 2001
Figures for the eight months to 28 February 2000 in parentheses:
Operating income: R825 000 (-R2.95m)
Net income before tax: -R3.05m (-R2.95m)
Attributable profit: -R3.05m (-R2.95m)
HEPS: -3.81c (-3.69c)
Current assets: R1.6m (R1.29m)
Current liabilities: R354 000 (R139 000)
NAV per share: 16c (21.65c)
The Igaming share was suspended last month after the company failed to appoint a registered sponsor and did not submit its results by the deadline.
It says the results were delayed because of the cancellation of a major agreement with Cybergaming.com plc, which it adds is the main reason for the negative figures.
The group has also called off the proposed deal in terms of which cash shells Essential Beverage Holdings and Oxbridge Online would have housed Igaming`s non-core interests.
"The group was beset by major problems in the acceptance of credit cards on online gambling sites, this accounting for over 90% of online gamblers` method of purchasing credits at an online casino," the group says.
"This is a problem with which the entire online gambling industry has been beset of late due to wide-scale credit card fraud, abuse from gambling addicts and the denial of claims of cardholders after gambling on online casino sites."
Most global credit card merchant service providers will either not accept online gambling sites as merchants or they impose terms and conditions the merchants see as unacceptable.
"The resolution of this problem was time-consuming and involved much of management`s time and efforts in the past few months.
"This problem has subsequently been satisfactorily resolved and in addition to that resolution, the group has secured new and innovative alternative Internet payment processing methods to be utilised by the group`s licensed online casinos. This will ensure that the group`s licensed online casinos will be relatively unaffected by payment processing technology problems facing many of its competitors at this time.`
The group says it has outsourced most of its non-core functions and expects significant benefits from reduced overhead costs. It has also closed offices and retrenched non-core employees.
It is extending its relationship with licensees of its online gaming sites which it believes will lead to increased revenue streams, compensating for the loss of the Cybergaming.com agreement.
Igaming says it expects to meet its prelisting forecasts for the year to 30 June 2002.
Related stories:
Three Igaming directors quit
Igaming suspended after another transgression
Oxbridge, Essential suspended, Igaming warned
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