High-rollers, tax slug spoil Jupiters' game

The result was affected by a $10 million provision Jupiters has made for the possibility that it will lose its court appeal over a tax dispute. Jupiters booked a $42.4 million profit in the December 2000 half.

This year's interim profit was also hurt by the volatile Asian high-roller market.

The international premium-play division contributed $2.7 million in extra after-tax earnings in the December half, thanks to an above theoretical win rate.

However, this was 70 per cent less than the $9 million extra earnings the division generated the previous year.

Excluding these two factors, Jupiters' underlying profit jumped 30 per cent to $43.5 million, compared to $33.4 million earned the previous year. The company declared an interim dividend of 10c a share, up 1c.

Despite the fall-out from September 11, Jupiters managed to boost its revenue by 3 per cent to $407 million in the December half. The relatively buoyant domestic tourism economy counteracted the negative impact of the terrorist attacks in the US.

However, the weak international tourism market is expected to take its toll on Jupiters this half as the company shifts its reliance to overseas visitors for revenue. The company warned that hotel and convention bookings for this period were ``down significantly".

Jupiters remains confident it will achieve double-digit profit growth this financial year and said bookings beyond June were ``showing a positive trend". The company posted a $77 million profit in 2001. Jupiters shares rose 7c to $4.78 yesterday.

Elsewhere in the sector, Ainsworth Game Technology reported a loss of $2.85 million for the December half.

This was a substantial improvement on the $4.1 million AGT lost the previous year.

The newest venture of poker machine king Len Ainsworth, AGT cited the costs of research and development and establishing infrastructure for its first-half loss.

AGT only began selling its flagship Ambassador machine in late September 2001. It booked $10.6 million revenue for the half.

Having secured licences to sell its machines in NSW, the ACT and Adelaide, AGT has its sights set on expanding throughout Australia and overseas.

AGT made its debut on the sharemarket in mid-December. Issued at $1, it fell 2c to $1.23 yesterday before the company announced its result after the market closed.

Meanwhile, rival poker machine manufacturer Stargames has followed AGT's lead, striking a deal with the Packers' Crowngames.com to develop games for the Internet casino. A month ago AGT signed an agreement to develop exclusive games for the Vanuatu-based casino.

Stargames shares rose 1c to 70c yesterday.