AsianLogic Limited (AIM: ALOG), the Asia-Pacific online and land-based gaming company, provides the following update on trading for the six months ended 30 June 2008.
In the period commencing 1 April 2008 to 30 June 2008, average daily casino turnover increased from US$11 million to US$14.6 million, an increase of 34% on the previous quarter's average. Net gaming per day increased from US$243,069 to US$320,158, an increase of 31%. Poker fees continue to grow ahead of forecasts and Q2 2008 increased by 39% compared to the previous quarter's average. Operating margins in 2008 have so far seen an improvement when compared to 2007, although AsianLogic anticipates lower levels of profitability in some sectors of its online casino activities, due to margin pressure, similar to that faced by land based Asian casinos working with casino junket groups and agents. The Company does not believe that these margin pressures will significantly impact overall business and the Company remains very positive on figures for the full year.
Additionally, following the company's maiden AGM on 27 June, AsianLogic announces a number of strategic developments to assist its continued growth in the online and land-based gaming sectors.
The Company has signed a strategic agreement with Philippine-based gaming company Leisure Resorts and World Corporation ("LRWC") to operate a land-based sportsbook operation. Asianlogic has sold its domestic sportsbook operations to LRWC in an all paper transaction.
In conjunction with a third party international sportsbook operator, and subject to performance targets being met, the Company and its sportsbook partner will be issued up to 342 million LRWC shares (approximately 30% of LRWC) over the next 3 years. AsianLogic will assist LRWC by way of ongoing management agreement in expanding the number of betting outlets, increasing the number of sports offered to punters and boosting betting turnover and profits.
Asianlogic will also invest US$4.5m in LRWC. The part new shares and part purchase of treasury shares equates to approximately 8% of the expanded LRWC share capital. Approximately US$1M will be used by LRWC for development and infrastructure work in LRWC's projects under its subsidiary, First Cagayan Leisure and Resorts Corporation in Cagayan valley with the balance used to set up a new land based gaming entity in Metro-Manila, Philippines. A detailed overview of the sportsbook transaction and investment will be provided jointly by LRWC and AsianLogic via an investor presentation and conference call during the week of July 14 2008.
Furthermore, AsianLogic announced that it has invested US$3.4m and acquired a significant minority stake in a European based gaming solutions provider that will complement its existing product range provided by Playtech.
The Company expects to close its part cash, part shares US$24m transaction with a leading Asian e-gaming operator in the next 60 days.
The Asian Poker Tour ("APT"), acquired in February 2008, is proving highly successful. The first event held in Manila attracted 316 players (a record for any poker tournament held in the Philippines) from 23 countries and the company is expecting greater player numbers and support for its subsequent tournaments this year in Macau, Korea and Singapore.
APT is now planning its 2009 tournament schedule which comprises of at least 6 tournaments held in different Asian cities. AsianLogic has also agreed terms with a leading Macau hotel and casino to locate its "APT Poker Room" within the premises.
Furthermore, AsianLogic today announces the following Board changes: Thomas Hall, currently the Executive Vice Chairman, will assume the role of Chief Executive Officer with immediate effect and will assume day to day responsibility for the Company's activities and expansion.
Mr. Hall replaces Christopher Parker who continues as a Director and takes up the new position of Chief Executive Officer of the Asian Poker Tour, AsianLogic's land-based poker tournament company.
Thomas Hall, Executive Vice Chairman and CEO said:
"These results reflect the successes AsianLogic has enjoyed and demonstrate the Company's continuing growth as a listed entity. We believe that the acquisitions and joint ventures announced today will strengthen, complement and expand our existing operations. My new role in the company provides me with the opportunity to ensure all appropriate opportunities are secured and developed to the maximum benefit of the Company.
"For the Asian Poker Tournament, opening a poker room in Macau - the gaming capital of Asia - will cater to the growing demand for poker facilities as well as providing us with excellent cross marketing opportunities for our online brands and online initiatives. A big part of our future strategy is to combine our online revenues with those that can be derived from slot clubs, bingo halls, sports betting venues and other land based, regulated gaming venues and to leverage both channels wherever possible.
"Our core gaming activities are performing strongly and the accretive benefits from acquisitions and investments coming into play from Q3 onwards. We have added several key senior staff members so as to enable the Company to cope with its planned growth. The Board are very positive about the Company's prospects"
NOTES TO EDITORS
AsianLogic
AsianLogic is a leading online and land-based gaming company focusing on the Asia-Pacific markets. The Company operates eight online casino brands and four online poker rooms as well as land-based sportsbook operations through its MegaSportsWorld brand. It is a specialist in Asia-specific games such as Mahjong, Cho-Da-Di, Do-Di-Zhu and 13 Card Poker. The company owns and operates The Asian Poker Tour.
The Company also maintains a corporate advisory team specialising in the gaming sector which is an active investor in gaming-related businesses as well as providing consultancy and analytical services. AsianLogic enjoys strong commercial relationships with leading gaming providers including Playtech and LVS. Founded as ESL in 2002, AsianLogic employs over 300 employees, the majority of whom are based in the Philippines.
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