CIL - Centrebet

[_Michael]

Hi,

Is anyone interested in following companies that highly successful Auckland fund managers, Fisher Funds are currently buying on the Aussie Exchange?

If so - I personally think Centrebet is worth a closer look, quick facts;

- Fisher Funds recently increased their holding from 7.3% to 8.4% in August

- They listed in July 2006 and have so far delivered ahead of prospectus

- They primarily are an international online sports betting and gaming site

- Thy have around 60,000 registered regular customers

- Strong revenue earnings growth for the last six years, double digit growth in earnings set to continue for years to come

- Low price to earnings, around 12 times FY08 - dividend yield of nearly 5%

- No debt, $10 million cash - high return on equity greater 40% so expect increasing dividends and capital management in coming years

- Chart showing strong trend reversal in last week or so but would interested in Phaedrus or anyone elses' technical opinion on this one.

Cheers
m


platforms with some strong licenses and alliances that will provide a moat to some of the areas in which they operate. As an exa

[AMR]

http://img340.imageshack.us/img340/2130/cilqd5.png

Great spotting there. As a chart here shows, someone with deep pockets has been buying up large during the downtrend. This is shown by the large jumps in OBV during the first week of June. There is also a smaller jump in OBV during the recent rally from $1.80.

However, the trendline has not been broken yet. I have never traded based purely on TA before, but I would wait for a breakout that lasts for a few days before I buy.

[AMR]

There may also be a double bottom but I'm not 100% sure.

http://img141.imageshack.us/img141/2269/cildoublebottomvb3.png

[_Michael]

Hi xxxamr_corpxx,

Awesome - thanks for the charts, most useful as I don't have very sophisticated tools for TA.

Will keep an eye out for a break to 2.10 say for confirmation of downtrend reversal...

m

[_Michael]

Another positive iniative announced by CIL today - they will be launching an online sports book in conjunction with Fairfax Digital giving them access to around 1.7 million domestics unique impressions monthly and re-enforcing their brand strength through alignment with trusted name.

CIL is in my opinion a very good company overseen by two brothers with an outstanding track record. Their forward pe is around 12, the dividend yield above 5%, zero debt and flush with cash - profit outlook is low double digit this year but I suspect will ramp up in 2009/10 on the back of numerous strategic initatives and organic growth....

[_Michael]

Strong result out today, some interesting trading activity last couple of weeks.

Seems to have been some irregular trading patterns last couple of weeks though.

[_Michael]

21 August 2008
ASX Release
Centrebet International Limited (ASX:CIL) Announces 17% growth in NPAT to $13.0m for FY08
FY08 Highlights
· EBITDA growth of 20% in FY08 to $17.4m with improved EBITDA margins.
· 17% growth in FY08 NPAT to $13.0m, achieving earnings guidance.
· Final dividend of 6.0 cents per share, 75% franked. Total dividends from FY08 of 10.5 cents per share resulting in 13% growth in total dividends. · Centrebet is well positioned to capitalise on the pending deregulation of the Australian wagering market, experiencing 14% growth in Australian turnover. · Delivered 76% growth in Casino revenue which has driven strong European performance, with revenue growth of 22%. · The Board projects double digit NPAT growth for FY09 of between 10% to 15%, providing FY09 NPAT guidance range of $14.3m to $15.0m.
Overview

Centrebet International Limited (CIL), Australia's leading online wagering and gaming operator, today
reported a 17% higher net profit after tax of $13.0 million for FY08.

The robust result, in line with earnings guidance and reflecting strong trading across wagering and gaming
operations, was achieved via a 25% boost in turnover to $1.3 billion and revenue growth of 6% to $62.7
million, which was strong considering the wagering win rate reduced to 5.4%.

"This is a commendable result delivering very strong profit growth, improved earnings margins, continued
commitment to introducing new and better products and services, and the continual focus on operational
efficiencies. Centrebet is building an excellent platform for sustainable long term growth in its core
markets," said Chairman Graham Kelly.

"The company has delivered on its core initiatives and key financial targets. This has paved the way for a
higher return to shareholders through the payment of increased dividends."

Managing Director, Con Kafataris, said it was pleasing to see wagering turnover grow by 9% to $845
million and a growth of 72% in casino turnover.

"The resulting Casino revenue growth of 76% meant, Centrebet is achieving its goal of expanding
geographically, while at the same time focusing on growing market share in racing and sports in Australia,"
Mr Kafataris said.

"In the year under review, the company increased cash from operations by 15% to $15.2 million and held
total operational expenditure increases to only 2%."

[h2so4]

Bet ta than TABCORP?
Nice to see costs are tightly monitored.( Of course we all know thats what companys should be doing in the interests of their shareholders:)) Looks like a well run business with high profits and low CapExs. Still a buy IMO with excellent growth prospects coming from offshore markets and further deregulation. Its business as usual at CIL and I am more than happy to continue to hold and collect my dividend cheque, mind you thats a first for me.:D
cheers

[Snow Leopard]

Bought some recently on the premise that the price is currently going up and that could be a little undervalued.

best wishes
Paper Tiger

[ratkin]

Im involved in the betting industry , as a long term prospect i wouldnt touch them.
Cant say anymore except that comment isnt directed at the company specifically, it relates more to changing patterns of betting that are going to occur

[macduffy]

Im involved in the betting industry , as a long term prospect i wouldnt touch them.
Cant say anymore except that comment isnt directed at the company specifically, it relates more to changing patterns of betting that are going to occur

Intriguing comment, ratkin!

Any chance of a bit more detail?

CIL make much of their strong position in sports betting, their contracts to provide fixed odds betting for, I think, the Tas and SA TAB's and their own increasing share of racing betting, a relatively new area for them. Certainly, there is a lot of competition from other corporate "bookies" but share of business is increasingly flowing from the TAB's. Europe is a bit of an unknown, IMO, but the Aussie business looks good, from a distance!

Disc: Interested, but not holding.

[macduffy]

The ASX notes that the SP has increased from $1.57 on 28 January to $1.74 intraday, today. Apparently on rising volume.

I agree that an increase of around 10% over this period hardly seems to warrant a "please explain".

Perhaps they're fishing?

[Snow Leopard]

A maybe for Sportingbet to launch a takeover (http://stocknessmonster.com/news-item?S=CIL&E=ASX&N=634020) bid down the line has upped the share price a bet.

best wishes
Paper Tiger

[Snow Leopard]

A maybe for Sportingbet to launch a takeover (http://stocknessmonster.com/news-item?S=CIL&E=ASX&N=634020) bid down the line has upped the share price a bet.

best wishes
Paper Tiger

Next step down the road and another step up in the market price.

I do wish the companies I invest in would stop being taken over, but at least this one will not be done and dusted this financial year.

best wishes
Paper Tiger

[Snow Leopard]

I sold them today having decided that $2.25 now was the better option for me.
Trading ceased today and I nearly missed the opportunity to sell. Must pay attention to the what I own!

A near 36% profit is a good outcome, wish my other shares were doing as well

best wishes
Paper Tiger