Transcription of Finance News Network Interview with eBET Limited (ASX:EBT) CEO and Managing Director, Ken CarrJohn Treadgold: eBET is a gaming system company that operates across Australia, New Zealand and Southeast Asia helping its clients to develop gaming solutions, management systems and licensing operations. I’m John Treadgold and joining me today at the ASX Investor Series is the Company’s CEO and Managing Director, Ken Carr. Ken welcome to FNN.
Ken Carr: Thanks very much, nice to be here.
John Treadgold: You released your interim results at the end of last month; you’ve shown some strong gains. What were the highlights?
Ken Carr: We dropped a low margin gaming machines business and acquired a gaming systems business. That made itinto the first half we managed to increase our overall sales revenue by six per cent. More particularly we increased our EBITDA by 17 per cent, which it reflected very much in our net profit before tax increase of 31 percent for the year, the first half.
John Treadgold: You’ve done major deals with gaming managers in Victoria as well as with the Redcape Hotel Group
(ASX:RPF). How are these
deals progressing?
Ken Carr: In Victoria very strongly John. We were targeting to a change in the legislation, venues with a total of 7,600 gaming machines. To date we’ve managed to secure 5,000 of those machines across a range of venues, to use at best our top of the line Metropolis system. Further on that, the Redcape Group is one of the preeminent hotel chains in the pubs and hotels market, which we had not addressed previously. And this gave us a whole new segment to look at with our major product.
John Treadgold: What can we expect in terms of new ventures going forward?
Ken Carr:Well certainly we would be looking at new product areas moving forward;in fact we’ll be launching some new product areas in the next few days. And we’re always a very inquisitive business, so we’re always on the lookout to see other opportunities to fill up our marketspace.
John Treadgold: Flexi-NET and Astute BI are acquisitions that are now integrated into your operations. What sort of contribution are they making at this early stage?
Ken Carr: Flexi-NET is ahead of the original planned expectations that we released last year. Very strong business, in this area we acquired 89 customers and haven’t lost a single one. In fact we’ve increased by another one, even though we’re trying to transmission them all across to Metropolis. So it’s a very strong business case with lots of strong recurring revenue streams, which is what our main target is in that area. Astute has been a business intelligence business, we love it to bits and the product tomorrow will only enhance that point forward.
John Treadgold: CARD IT is a new offering. What are the benefits for the Company and for the clubs?
Ken Carr: Certainly from our position, we’ve launched CARD IT about three years now and managed to accelerate that business up to about 200 venues. For the clubs themselves,what it means is it’s easier to manage their members who are gaming, gabbling and manage their memberships, and also their redemption. So it’s about loyalty management in there. In general,clubs who use CARD IT see about a 19 per cent increase in return to those venues, of the people who use CARD IT. So we’re very, very happy with CARD IT overall.
John Treadgold: What can investors expect from eBET in the next 12 months?
Ken Carr: We’re classed really as a growth business, so my job is to grow the business. Last year we were a $40 million business and my job is to take us up to be a $100 million business. So I expect to see a lot more growth, probably more acquisitions and more product launches.
John Treadgold: Ken Carr, thank you for joining us on FNN.
Ken Carr: Thanks very much John, pleased to be here.
Ends
