Forum Archive Index - August 2001

["Wedde, John" <John.Wedde@weltec.ac.nz>]

I think Canbet are worth a punt at the current price.
I bought a few at 7 cents and am holding.

Key points from Canbet's annual report:



CANBET LIMITED 2001-08-15 ASX-SIGNAL-G
HOMEX - Sydney 

+++++++++++++++++++++++++
KEY POINTS:

* The year saw Canbet become Australia's biggest bookmaker and, with
87% of its handle (turnover) on-line, one of the world's biggest
interactive bookmakers.

* Total bookmaking handle for the year ($284.7 million) was 320% of
that achieved in the previous year.

* Total bookmaking win was $1.5 million.

* The total group's loss for the year was $4 million with an EBITDA
of ( $2.3 million).

* Ganbet has achieved a turnover level on North American sporting
events where continued wins can be expected.

CHAIRMAN'S REVIEW

The past year has seen Canbet become Australia's biggest bookmaker.
Bookmaking handle (turnover) at $284.7 million was 320% of that
achieved in 1999/2000.

Canbet has built its thriving sports betting business on three key
strategies:

* The credibility associated with dealing with a public listed
company operating in a proper country with a proven regulatory regime

* Being price competitive by passing on cost savings derived from
building a strong internet sports book

* Providing efficient customer service using market leading, user
friendly software and hardware to build a first class internet
capability and a strong competitive advantage. 

The bookmaking win of $1.5 million was the result of a strong second
half result making some amends for a disappointing first half. It is
pleasing to see that Canbet has achieved critical mass on North
American sports and continued wins ran be expected. Overall there are
sound grounds for optimism that the improvement in bookmaking returns
achieved in the second half of the year should be sustainable.

While the bookmaking results have been satisfactory, the company has
sustained a loss of $4 million for the financial year ending 30 June
2001. EBITDA was ($2.3 million)

($'000) FIRST HALF SECOND HALF FY01

Handle (Turnover) $138.2m $146.5m $284.7m

Win % (0.01%) 1.05% $1,536

Gross Bookmaking Win ($9) $1,545 $1,536

Expenses $2,326 $3,827 $6,153

EBITDA ($1,401) ($921) ($2,322)

In past years many of our major competitors have been based in
semi-regulated environments such as the Caribbean and offshore
European islands. However, as a consequence of changes to the gaming
tax regime in the United Kingdom, a number of the more significant
sports betting operations such as William Hill, Ladbrokes, and Coral
are expected to move their operations back to England. Accordingly
Canbet is now giving consideration to the merits of establishing
operations in other jurisdictions.

Details of the company's financial performance for the year are
contained in the statutory information released today to the ASX.

Richard Farmer 
CHAIRMAN

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