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Lasseters Says Revenue Will Increase, But It Will Need to Raise Capital

The company reported customer revenue of $3.5 million.

Cash reserves at the end of the quarter were $1.1 million, down from $3.6 million at the beginning of the quarter. This was primarily due to factors such as, the closing out of existing GOCORP obligations in the order of $800,000, of which $222,000 related to the acquisition of Lasseters Casino Pty Ltd ("Lasseters Casino").

Lasseters will now operate as a holding company to the operating entity Lasseters Casino. Expenses of Lasseters Casino for the quarter included costs associated with the upgrade of the online casino site and gaming software, these costs were incurred over and above operational costs.

Managing Director, Mr Peter Bridge, said, "We expect the costs associated with the Lasseters Casino site upgrade to flow through to the next quarter."

Since the completion of the merger on 29 June 2001, the company has initiated a comprehensive cost containment strategy.

The cost savings include a proposed reduction in Directors fees, the surrender of the company's Queensland Interactive Gambling Licence ($50,000 per quarter), and the termination of the lease on the company's premises in Sydney from November 2001 ($83,000 per quarter).

Mr Bridge said the company's, particularly Lasseters Casino's, September quarter result reflected the continual investment required to build an online gaming business.

"However, at the same time, our revenue is forecast to rise steadily," Mr Bridge said.

In order to ensure the company's business strategies remain closely aligned with the forecast high growth in internet gaming, Lasseters also flagged its intention to raise additional capital either domestically or internationally during the first half of 2002.

"Market forecasts indicate that over the period 1998 to 2005 the internet gaming market will increase at a compound annual growth rate of 45 percent.

"Lasseters Casino has positioned itself well in the growing global internet gaming market but expanding this position will take investment in marketing, game development and technology," Mr Bridge said.

"We will review our requirements for additional funding during the current quarter with a view to a capital raising. This will give us a stronger financial base to support business growth in this large and fast growing market."

Mr Bridge said the reported customer revenues of $3.5 million during the September quarter was a positive result in light of distractions relating to the merger transition, world events and online casino downtime due to the testing of the new Lasseters Casino site.

On 25 October, the company launched the first major upgrade to the Lasseters Casino site since its launch in April 1999. This increased the range of games offered from 11 to 21.

"Early results from the new site have been very positive," he said.

"We are confident that our revenue targets for the December and March quarters can be achieved."

Under the new company structure, Lasseters Corporation Limited operates as a holding company. Lasseters Casino Pty Ltd is a trading business and is reported as a wholly owned subsidiary. The subsidiary is the principal source of revenue for Lasseters Corporation.

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