Loss narrows for sports betting operator

Monday, Dec. 20, 1999 | 11:16 a.m.

Las Vegas-based American Wagering Inc. reported improved quarterly financial results, though the company's start-up operations continue to cause losses.

American Wagering's revenues rose 47.5 percent in the quarter ending Oct. 31, to $3.88 million. The company reduced its net loss by 55 percent, to $304,000, or 4 cents per share.

Stronger results were driven by better win percentages at the company's sports books and increased revenues from the sale of computer wagering equipment and software. American Wagering is the owner and operator of the Leroy's Horse and Sports Place chain, which has 47 locations in Nevada.

The company's win margin in the United States was 8.1 percent in the quarter, up from 4.5 percent a year ago. Meanwhile, the company's CBS affiliate helped drive system revenues up 43.4 percent, to $1.43 million.

The company's long-term businesses recorded a operating profit increase of $1 million over last year, the company reported. But continued investments in new operations still kept the company in the red for the quarter.

The company's Mega$ports affiliates in the United States and Australia recorded operating losses totalling $382,000. Most of this was attributable to the company's Australian subsidiary, which is operating an Internet-based sports wagering system. The company also took a $292,000 operating loss at AWI Keno, which launched operations in August, and spent an additional $278,000 on research and development during the quarter.

Over the nine months ending Oct. 31, revenues rose 38.6 percent to $2.55 million, while the company's net loss was $578,000, or 14 cents per share. In the year-ago period, American Wagering lost $1.7 million, or 22 cents per share.