Tuesday, Sept. 30, 2003 | 11:21 a.m.
Sports betting operation sold
SYDNEY, Australia -- Jupiters Ltd., Australia's third- largest gaming company, said it agreed to sell its Centrebet sports betting business to SportOdds Group for A$46.6 million ($31.2 million).
The net proceeds of the sale will be distributed to shareholders through a special dividend, Broadbeach, Queensland-based Jupiters said in a statement to the Australian Stock Exchange. The sale is due to be completed Oct. 27.
Stock option calculation problem hurts results
FORT LAUDERDALE, Fla. -- SportsLine.com Inc. plans to lower its reported financial results for the past two and a half years by a total of $8 million to correct an error in calculating a stock-option expense.
The company, an online sports publisher, also said it would miss its revenue expectations for the rest of the year because of increased competition in the fantasy sports subscription market and a slower-than-expected recovery in online advertising.
SportsLine said its auditor, Ernst & Young LLP, found that the company made an error in setting the measurement date for certain option grants, which in turn affected the calculation of the grants' intrinsic value.
The company will take non-cash charges totaling $8 million to correct the error. The loss for 2001 was restated to $66.1 million from $61.1 million; the loss for 2002 was amended to $50.5 million from $48.2 million; and the loss for the first six months of this year was changed to $22.9 million from $22.2. million. SportsLine said the amendment had no effect on past or future cash flow.
At the same time, SportsLine will reclassify its gaming information operations as discontinued, beginning with 2001 results. The company sold VegasInsider.com in June and expects to sell Las Vegas Sports Consultants this year.
For the third quarter, the company now expects revenue of $15 million to $15.5 million, about 5 percent below its late July projection. SportsLine expects a quarterly net loss of $12 million to $13 million, including a $2.8 million writedown on the e-commerce assets it acquired from MVP.com Inc. in January 2001.
Previously, the company had targeted a third-quarter loss of $8.5 million to $9.5 million, which didn't reflect the MVP.com charge. Last year, the quarterly loss was $11.4 million, or 30 cents a share.
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