Archive for October, 2006

Empire Online Limited Reports Results for Six Month Period Ended 30 June 2006

Sunday, October 22nd, 2006

On October 18, 2006 BVI-registered company Empire Online Ltd has announced the results for the six months ended 30 June 2006. The main operating and financial highlights have shown the significant decline in net gaming revenues, which made $38.2m for the first half of 2006, while for the same period of 2005 they were $49.7m.

Such amount in 2005 to much extent arose from the Playtech licencees acquired in the second half of 2005. Playtech Ltd., which is also incorporated in the BVI, provides software for the Empire Online; the last one, in its turn, specializes in marketing services to the online gaming industry. Both companies were touched by the crisis in the US online gambling industry, which happened in the end of September and led to the plunging of the shares of the leading companies having business in this sphere.

This amount in 2006 was reduced because of the diminishing of Poker revenues due to the termination of Empire Poker following the settlement agreement with Partygaming plc in February 2006. Total casino revenues for the first six months of 2006 rose to $30.2m ($10.7m for the same period of 2005), while poker revenues fell from $39.0m in the first half of 2005 to $8.0m in 2006.

Gross profit for the first half of 2006 was $17.6m and constituted 46.1% of revenue, while for this period of 2005 it was $21.1m, or 50.3% of revenue. Gross profit margin has reduced due to the change in product offer towards casino activities. The company’s chief executive has noted in his statement to the report, that the normal slow down in trading activity which was seen in the second quarter of 2006, have been more pronounced if compared to the previous years, and in connection to this earnings growth for 2007 may become challenging.

The decrease of some positions reflected in the company report may be explained with the regulatory uncertainty which was always faced by the online gaming industry and has even increased due to the recent events. However, Empire Online Ltd. is one of the major London-listed online gambling companies, so it can also benefit from the new Internet Gambling Law.

CIC Energy Corporation has announced financial results for periods ended August 31, 2006

Friday, October 20th, 2006

On October 12, 2006 BVI incorporated CIC Energy Corp. has reported losses for the three and nine month periods ended August 31, 2006. These losses can be explained by the increase of non-capitalized exploration expenditures, administration costs and other extraordinary costs connected with the consolidation of Coal Investment Corp. and Ophir Ventures Inc., which occurred in March 2006, as well as the subsequent listing of the common shares of CIC.

The loss for the three month period ended August 31, 2006 constituted $702,445, or $0.02 per share, and the loss for the nine months was $2,380,103 or $0.08 per share. Capitalized exploration costs amount to $41,942,771, the exploration costs for the nine month period totalled $38,206,662.

Consolidated Interim Financial Statements for the three and nine months ending August 31, 2006, along with Management’s Discussion and Analysis, have been filed on SEDAR and are available at www.sedar.com – filing system of Canadian Securities Administrators (CSA).

Chigo Air Conditioner just registered in BVI and moving to Hong Kong market

Wednesday, October 18th, 2006

Guangdong Chigo Air Conditioner Co.,Ltd. has just finished its registration in the British Virgin Islands (BVI) and financial reorganization and restructuring. Now, together with another private enterprise working in the same China region, which is going to launch stocks in Singapore, it will submit materials to the Stock Exchange of Hong Kong Limited (SEHK) in November 2006, and move to the Hong Kong market.

The company Guangdong Chigo Air Conditioner is a large-scale private enterprise, currently registered in the British Virgin Islands and conducting business in Foshan, Guangdong province. It was founded in 1994 by Mr. Li Xinghao. The company has annual output of 10 million air conditioners, and is going to move to the market of Hong Kong as BVI offshore company.

London-listed (Gibraltar and BVI) Gambling Companies May Benefit From New Internet Gambling Law

Monday, October 16th, 2006

Britain may bring in legislation allowing London-listed gambling companies to move their headquarters to Britain. The Sunday Times newspaper reported that it had seen documents in which the government said the move to Britain would provide Britain’s online gamblers with a “safe, well-regulated environment”. By the paper’s information, also the Department for Culture, Media and Sport had been lobbying the Treasury to introduce a favorable tax regime for online gambling companies.

The biggest London-listed Internet gambling company PartyGaming Plc is based in Gibraltar, and is placed in the blue-chip FTSE 100 index. The company 888 Holdings Plc. which is one of the world’s most popular online gaming companies, is also incorporated in Gibraltar.

Amongst the major London-listed internet gambling companies there is BVI-based Empire Online Ltd, which also has arrangements to market Casino-On-Net (part of 888.com). The company is a leading provider of marketing services to the online gaming industry. Using online and offline advertising and marketing techniques, the Empire Online Group directs new players to its online poker and online casino websites. Software for Empire Online Ltd is provided by Playtech – a BVI incorporated company which is one of the leading software providers in the industry.

Other marketing techniques of Empire Online Ltd include the registration of suitable domain names for the purpose of redirecting internet traffic and the use of marketing agents. More recently, the Group has used offline marketing campaigns which have shown significant results.

Some time ago, the U.S. Congress also approved a bill to make it illegal for banks to process payments to gaming Web sites. This decision made most European operators to pull out of the United States, and hit the share prices of the U.S. companies.