Acquisition of Gambling.com
May 03 2005 - 4:00AM
UK Regulatory
Gaming Corporation PLC
Gaming Corporation PLC
Tuesday 3 May 2005
Acquisition of Gambling.com
The board of Gaming Corporation plc ("Gaming Corporation"), the owner of the
UK's number 1 gaming website www.casino.co.uk, announces the acquisition of
Newbold Enterprises Limited ("Newbold") the owner of Gambling.com.
Gambling.com is the global leader in casino, poker, and sports betting search
since 1997. Income is primarily generated through pay per click advertising
where clients bid to reach higher rankings in the search results, a model used
by other search companies such as Google and Overture.
Gambling.com is the number 1 listing on google.com for "Gambling" search and has
over 500 other internet and affiliate sites linking to Gambling.com globally.
Gambling.com has extensive expertise in direct mailing and has built a double
opt-in database of over 200,000 members.
Gambling.com's proprietary technology includes an International and UK specific
pay per click bid management search engine. This allows advertisers to create
and self manage their search listing campaigns from online deposits through to
bid management and real time reporting. Like all the major pay per click search
engines, Gambling.com uses complex algorithms and strict editorial to maximize
efficiency for advertisers and end users alike. This technology also enables
Gambling.com to distribute their gaming related listings to other web sites thus
increasing their exposure and revenue earning potential. The technology can also
be licensed to operators in other industries giving them the opportunity to
create their own destination search sites
The consideration for the acquisition of Newbold is US$20million (�10.5million)
to be satisfied as to US$15.3million (�8.0million) in cash and US$4.7million
(�2.5million) in new ordinary shares. A total of 17,375,244 Gaming Corporation
shares are being issued, of which approximately 7.38million are subject to a
lock-in of six months and the balance has been placed on behalf of the vendors
of Newbold with institutional investors. As at 28 April 2005, Newbold had a net
cash balance of over US$850,000, which implies an enterprise valuation for the
business of US$19.15milion (�10.1million).
The financial performance of Newbold is summarised in the following table.
12 months ended 3 months ended
31 December 2004 31 March 2005
Audited unaudited
----------------------------------------------------------------------------
Gross profit US$3,387,458 �1,782,873 US$759,857 �399,247
----------------------------------------------------------------------------
Profit after tax US$1,530,037 �805,283 US$458,592 �241,364
Margin 45.2% 60.3%
Net assets US$4,535,037 �2,386,862 US$5,003,997 �2,633,683
Notes:
The �sterling figures have been provided for illustrative purposes only. The
exchange rate used to convert US$ to � is 1.90.
Justin Drummond Chief Executive said,
"This acquisition is a major step in the evolution of Gaming Corporation.
Gambling.com is the leading global online Gaming search brand and a very
profitable and fast growing business".
"This acquisition forms part of Gaming Corporation's strategy of building a
portfolio of gaming brands that attract a worldwide audience."
"We believe that bringing Gambling.com into our portfolio of gaming websites
will enable Gambling.com to grow at an accelerated rate with improved
profitability and create new revenue streams for our existing business".
For further information contact:
Gaming Corporation plc
Damion Greef, Communications Director, 07736 381 030
Trevor Phillips, Holborn PR, 020 7929 5599
Jason Drummond, Chairman, 020 7618 9000
Justin Drummond, Chief Executive, 020 7618 9000
Mark Ashurst, Canaccord Capital, 020 7518 2777
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