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What is going on at IAS ? - Racing Talk - Racehorse TALK

Author Topic: What is going on at IAS ?  (Read 4949 times)

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Offline Bubbasmith

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O.P. « 2009-Jan-25, 04:54 PM »
I have listed from 2002 to 2008 the financial  performance of IAS from the company's annual reports. All comments quoted were made by the CEO at the AGM.

FYE 30.6.2002

* Revenue of $30.8 million up by 148% on the previous year.
* Wagering turnover of $350.4 million, representing growth of 78%.
* Pre-tax profit of $7.28 million.
* Profit after tax of $6.04  million.
* EBITDA of $8.94 million.

FYE 30.6.2003

The Company has again achieved a profitable outcome for
the FY2003. Despite challenging market conditions for the wagering industry, the
Company has recorded a profit after tax of $5.10 million compared to $6.04 million
for the previous year.

FYE 30.6.2004

Wagering revenue for the year was $20 million on a turnover of $519 million,
representing a disappointing margin of four percent. This figure is a one fifth
reduction on the 2002/3 result, and a third of the return for 2001/2. The toughest
yet market conditions resulted in a pre tax loss for 2003/4 of $3.6 million.


FYE 30.6.2005

For the year ended 30 June 2005, earnings before interest, tax, depreciation and
amortization was a loss of $0.57 million. The pre tax operating loss for the year was a disappointing $5.24 million.

FYE 30.6.2006

For the year ended 30 June 2006 International All Sports Limited (IAS) recorded a net profit from operations after tax of $1.23 million, a significant turnaround on the $5.5 million loss from a year.

FYE 30.6.2007

2007 was a testing year for International All Sports Limited (“IAS”) when profit was severely impacted by the following abnormal events:
1. The Commonwealth Bank of Australia (“CBA”) refund ;
2. The unexpected decision by US Congress to ban online betting and wagering forcing the closure of IAS’ growth business in the United States of America ;IAS recorded a loss of $9.47M after deducting $10.99M in non-recurring items. Normalised profi t before non-recurring items was $1.52M. This is an 80% improvement on the 2006 figure of $0.84M.


FYE 30.6.2008

International All Sports (“IAS”) encountered a testing year where profitability was impacted by the Group’s international operations and also significant unrealised foreign exchange losses associated with the strengthening of the Australian dollar
against foreign currencies.
The IAS Group recorded a loss of ($3.8M) for the 2008 financial year after deducting one off abnormal expenses of $1.8M.
The Group recorded an EBITDA of $0.9M for the 12 months ended 30 June 2008.

The trend indicates that the "good years" of the early 2000's are hard to replicate. The CEO's references to 'testing times" etc seems to indicate that it is all not "beer and skittles" for shareholders in IAS.

Shares were floated in 1999 at $2.00 If you had a betting account at the time you were entitled to a priority allocation if you subscribed . Shares are now trading at 16 cents..thank God I did not take up that priority or any subscription.

Offline bulldog

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« 2009-Jan-25, 05:44 PM Reply #1 »
I did get in on the float! eventually sold out at 40 cents - suppose can consider myself lucky. They don't seem to be able to keep up with the other corporates and should stop doing stupid gimmicks like that market for the victorian license and just try and run a better business - cos no-one's going to buy them out it seems.

Offline johnnysixpence

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« 2009-Jan-25, 06:12 PM Reply #2 »
i dont know if they have tighter margins than the other corporates or are just counting on mug money, but their prices are consistently shorter than the other corporates, so i cant see whay anyone with more than a couple of accounts would have any reason to use them.

Offline Bubbasmith

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« 2009-Jan-25, 08:47 PM Reply #3 »
From statement to ASX...
The Board of International All Sports Limited (ASX: IAS) wishes to update the market
on the results of the sale process which the company has conducted over the last 12 months. The Board undertook this review following initial unsolicited approaches that were made to the company by potential bidders and which were first announced to the market on 11 September 2007.
The Board, through its sale agents VMC Global Pty Ltd and Torch Partners Corporate
Finance Limited, has conducted an exhaustive process both domestically and
internationally in search of potential bidders for its principal business, namely the
IASBet business.
During the sales process the Board received further indicative expressions of interest for the business, however, in all instances either the price offered or conditions being sought by prospective purchasers would not have been in the best interests of the Company or its shareholders. Accordingly the Board has resolved to withdraw the Australian operations from sale.

Offline Rodent

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« 2009-Jan-26, 07:58 AM Reply #4 »
Is it possible to set up a corporate bookmaking business, float it and then bet against it yourself?
 Can you have a mate/business partner win heaps of cash from the company? The income you make legit through the business gets taxed whereas the cash you win from the business is tax free.
 I reckon that it is possible to basically use shareholders money as a cash cow. That is why I'd never buy shares in a corporate bookmaker. I reckon it's far too easy to milk them from within.
 I'm sure they wouldn't do anything like that at IAS but the conspiracy theorist in me prevents me from ever buying shares in such companies.

Offline Bubbasmith

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« 2009-Jan-26, 07:32 PM Reply #5 »
A further bit of information from IAS annual reports is the remuneration package that Managing Director of IAS, Mark Read has received since 2004. Prior to 2004 named individual director's remunerations, as such, do not appear to be disclosed. In the prospectus for the IPO in June 1999 ( on page 109 of 111 pages ) Mr Read , under a Contract of Employment, was to receive a base salary of  $300,000 increasing to $400,000 in July 1999 plus super + a fully maintained company vehicle + reimbursement of all out of pocket expenses including telephone.   

The total remunerations below were made up of salary, superannuation, incentives and non cash benefits. Any dividends received are not shown.

FYE 30.6.2004 = $ 749,000 ( rounded down to lowest $1000 )
FYE 30.6.2005 = $ 574,000 ( ditto )
FYE 30.6.2006 = $ 576,000 ( ditto )
FYE 30.6.2007 = $ 576,000 ( ditto )
FYE 30.6.2008 = $ 576,000 ( ditto )

Not too bad in view of company's performance over past few years.


Offline Wenona

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« 2009-Jan-26, 10:59 PM Reply #6 »
What I do like about them is that they are first up with the Saturday prices every week.


Offline zeditave

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« 2009-Jan-28, 06:58 PM Reply #7 »
Read has said he wants to sell, that probably means he's less willing to get involved in the trading floor these days. IAS's profits in the past have mostly come from punting and bet-backs, making use of the huge racing database they have and playing 'heads' - i.e. using the information they get from key clients backing or not backing certain horses.

They've been asking for a riduclously high price for the company, no chance of getting that during a boom economy let alone now...

Offline OldLarsy

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« 2009-Jan-28, 07:02 PM Reply #8 »
What I do like about them is that they are first up with the Saturday prices every week.



I'll put up prices before them if you promise to bet with me wenona   :biggrin:

Offline OldLarsy

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« 2009-Jan-29, 09:35 AM Reply #9 »
They sent me a $25 free bet, I haven't used them for over a year   :biggrin:
Backed Robert Karlson and Jeev Milka Singh in Dubai Desert Classic

Offline parrapete

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« 2009-Jan-29, 01:40 PM Reply #10 »
How would they be travelling if they did not accept bets from bank managers?

Offline Bubbasmith

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« 2009-Jan-29, 02:18 PM Reply #11 »
Couple of further interesting snippets from IAS reports to ASX.

December 2006

COMMONWEALTH BANK OF AUSTRALIA LITIGATION
The Board of IAS Ltd announced today that it has settled litigation
commenced by the Commonwealth Bank of Australia on the basis of no
admission as to liability, the execution of mutual release and the repayment by
IASbet.com Pty Ltd over time of effectively $7M credited to the account of
IASbet.com Pty Ltd in the normal course of its trading activities by a former
customer.

November 2008

The Board of International All Sports Limited (ASX: IAS) wishes to update the market
on the results of the sale process which the company has conducted over the last 12 months. The Board undertook this review following initial unsolicited approaches that were made to the company by potential bidders and which were first announced to the market on 11 September 2007.
The Board, through its sale agents VMC Global Pty Ltd and Torch Partners Corporate
Finance Limited, has conducted an exhaustive process both domestically and
internationally in search of potential bidders for its principal business, namely the
IASBet business.
During the sales process the Board received further indicative expressions of interest for the business, however, in all instances either the price offered or conditions being sought by prospective purchasers would not have been in the best interests of the Company or its shareholders. Accordingly the Board has resolved to withdraw the Australian operations from sale.

Offline jimbler

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« 2009-Jan-29, 04:02 PM Reply #12 »
They sent me a $25 free bet, I haven't used them for over a year   :biggrin:

Same.  They just e-mailed me a free $50 bet, but I haven't used them in months.  However, I've turned over between 150K-200K at Betfair in the past 12 months, and haven't received a brass razoo.   :thumbsd:

Offline OldLarsy

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« 2009-Jan-29, 04:04 PM Reply #13 »
They sent me a $25 free bet, I haven't used them for over a year   :biggrin:

Same.  They just e-mailed me a free $50 bet, but I haven't used them in months.  However, I've turned over between 150K-200K at Betfair in the past 12 months, and haven't received a brass razoo.   :thumbsd:

Why did I get half of what you got?  :mad:

Offline jimbler

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« 2009-Jan-29, 04:18 PM Reply #14 »
Why did I get half of what you got?  :mad:

I have no idea how they work it out.  However, I've always got a ton of free bets from this mob even though I've hardly ever used them.   :what:

This is what they sent me this time....


Offline OldLarsy

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« 2009-Jan-29, 04:31 PM Reply #15 »
Yeah same thing but mine was only $25
Maybe cause i'm only half Aussie   :biggrin:
They could have sent me 25 Kroner as well

Offline zeditave

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« 2009-Jan-29, 07:29 PM Reply #16 »
standard CRM tactic... if your normal bet is >$50, then you probably got a $50 free bet. If you're normally a $10-$20 player, then $25 heads your way...

Offline triple7

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« 2009-Feb-02, 09:46 AM Reply #17 »
c/ AAP

Centrebet makes takeover bid for IAS
February 2, 2009 - 10:19AM
 
Online wagering company Centrebet International Ltd has made a minimum $18.59 million takeover bid for gaming products group International All Sports Ltd (IAS).

The cash offer of 28 cents a share rises to 33 cents a share, or $29.91 million, if the predator acquires 90 per cent of the target's stock and moves to compulsory acquisition.

The offer represents a 75 per cent to 106.3 per cent premium to the closing price of IAS shares at 16 cents last Friday.

It also represents a 54.4 per cent to 82 per cent premium to its one month volume weighted average share price.

"All IAS shareholders have the opportunity to obtain a generous cash price, at a time of ongoing market volatility and following quite a long period of poor financial returns from their company," Centrebet chairman Graham Kelly said in a statement on Monday.

"By accepting the Centrebet offer, IAS shareholders have the opportunity to put an end to their exposure to the inherent risks and uncertainty of holding IAS shares."

Mr Kelly said the takeover of IAS would position Centrebet as one of the largest corporate bookmakers in Australia and be earnings positive in the first year.

"We will maintain a conservative capital structure and expect the acquisition to have a positive impact on Centrebet's earnings per share in the first full year of ownership," he said.

"Further earnings benefits are expected in the following years, as potential operating synergies of the acquisition are realised."

Centrebet said it was confident of gathering acceptances for its offer of more than 50 per cent.

It will fund the acquisition from its cash reserves and a committed bank facility.

A bidder's statement will be sent to IAS shareholders in early March and the offer is expected to close in early April.

Centrebet shares closed on Friday at $1.34, giving it a market value of $117.0 million.

Offline BillandTony

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« 2009-Feb-02, 01:19 PM Reply #18 »
Would have loved some insider info here. Up 75% today!!!

Offline bulldog

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« 2009-Feb-02, 07:18 PM Reply #19 »
my sell price of 40 cents is still looking good! 

maybe mark read can post a market on which company buys out IAS and puts this perennial  underperformer out of it's misery  :lol:


Offline Bubbasmith

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« 2009-Feb-02, 07:24 PM Reply #20 »
Bulldog

Your sell price would not be much good if you had jumped in at the IPO of $2.00.

Offline Bubbasmith

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« 2009-Feb-07, 06:55 PM Reply #21 »
Strong rumour around that the major shareholder in IAS, in an attempt to thwart takeover bid by Centrebet, has made a flying visit to Hong Kong. Shatin races not on the agenda.

Offline BillandTony

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« 2009-Feb-27, 01:39 PM Reply #22 »
Interesting that Sportsbet have been buying IAS shares and now hold just over 12%.

Offline BillandTony

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« 2009-Jun-03, 11:51 AM Reply #23 »
IAS in a trading halt pending an annoucement no later than Friday.

Offline jimbler

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« 2009-Jun-03, 03:03 PM Reply #24 »
Is Paddy Power swallowing them up as well?


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