PLAY BY PLAY INTERACTIVE SPORTS WAGERING
Imagine wagering play by play while watching your favorite sport! Pretty amazing growth in numbers here. The float is small and the market cap is small. Imagine what is going to happen when they are in 7.5 million households shortly. Beta version approved yesterday.
finance.yahoo.com
finance.yahoo.com
Good interview with CEO:
wallst.net put in ISWI into audio---register by putting email
biz.yahoo.com
Interactive Systems Worldwide Inc. Announces Sustained Dramatic Increase in New Players and Wagering Handle
Monday January 24
"Of course, the overall Internet volume, by itself, is still insufficient to sustain the Company alone, but the trends augur well for the anticipated imminent launch over the BSKYB interactive TV network, which will put our product into an additional 7.5 million households. We have always expected the play from the interactive TV users to dwarf that from the Internet due to the large number of potential users, the melding of the sports broadcast and gambling into a superior user experience and the ability to focus the marketing efforts."
"ISWI has the potential to generate strong interest among the consumer class of investors, similar to a SIRI, or in its heyday, TIVO."
finance.messages.yahoo.com
TODAYS BRIEFING TEXT
by: glove25kv
Long-Term Sentiment: Strong Buy 01/25/05 03:50 pm
Msg: 8776 of 8790
25-Jan-05 12:28 ET In Play Mike Tarsala's TechWatch -- ISWI (ISWI) 5.86 +0.01 : We think ISWI's announcement today that it's completed testing of its SportXction system is the precursor to BSk B's (BSY) actual launch of a play-by-play betting service via an interactive programming guide based on SportXction in Q1. We continue to believe the two companies will split revenue from the yet-to-be-named service 50/50. The service is expected to allow about 6 mln satellite subscribers in the U.K. to place bets on particular plays in a sporting contest while the game is being played (ex., you can bet w/ your remote control in real-time on whether or not a player will make a penalty kick). While ISWI has roughly doubled since our initial report on 12/6 and at this point looks a bit expensive based on our own financial modeling of the B Sky B deal over 12 mos, we think the story still has some catalysts to look forward to: 1) It's a compelling story that is still off most people's radar screens. 2) The stock is still in a strong uptrend. 3) We think our own estimates for the BSkyB deal are potentially conservative. 4) We think a successful launch with BSkyB could lead to additional satellite or cable system deals. 5) ISWI has the potential to generate strong interest among the consumer class of investors, similar to a SIRI, or in its heyday, TIVO.
finance.messages.yahoo.com
Some proforma calculations:
"Participants= 6 mln(BSkyB satellite sports subscribers)x1.8 (people in the average U.K. home)=10.8 million potential sports viewers. Say just 2% those people=216,000 actually gamble on the ISWI system once every two weeks, and the company's take is about 6 pounds per game from an average of 50 pounds of bets. That amounts to 12 pounds per person per month, or 144 pounds a year.
Total revenue=216000x144 = 31.10Million pounds
ISWI revenue (50%)=15.55M Pounds
Assuming ISWI annual costs= US$5 mln,(about 2.58 million pounds)
Leaves= 12.97 million pounds
-Tax(15%)=Leaves Profit= 11.02 Million pounds (20.95 Million Dollars)
EPS=$2.16 (assuming 9.69M shares)
Fare Value= assuming PE of 25 only= $54
Now if the company gets 3 percent of players.
"Total revenue=46.66Million pounds
ISWI revenue (50%)=23.33M Pounds
ISWI annual costs= US$5 mln,(about 2.58 million pounds)
Leaves= 20.75 million pounds
-Tax(15%)=Leaves Profit= 17.64 Million pounds (33.51 Million Dollars)
EPS=$3.46 (assuming 9.69M shares)
Fare Value= assuming PE of 25 only= $86.46
This is with B Sky B deal alone.
"If the B Sky B deal goes well, then other cable and satellite companies in the U.K, Italy, and elsewhere in Europe could come knocking on ISWI's door."
This is significant because it would allow them to enter the interactive television market with 7 million household
subcribers 1/23/05:
11:47AM Int'l Sports Wagering Inc. announces completion of testing of Interactive TV Product by partner (ISWI) 5.60 -0.24: Co announced that its interactive television version of the co's SportXction play-by-play sports betting system has successfully completed the formal test process required of all new products prior to their acceptance for broadcast over the BSKYB satellite network, which operates in the United Kingdom and The Republic of Ireland. |
