Small cap video games developer....swinging into profit....outlook good...cash in bank....starting to move....welcome anyone's comments and thoughts on this..

Highlights from Interims RNS
"Turnover for the six months ended 30 September 2003 was 1,062,000 compared with 633,000 in the same period last year. The profit (both before and after tax) for the half year was 23,000 compared with a loss of 556,000 in the same period last year

Visit Bits corporation website:
http://www.bitsstudios.com/default.asp

Good news for BIT holders, just got this from macansy who I know knows BIT very well !

"SCAP have a seller at the moment, i gather somewhere around the 400k shares mark - 100k on offer at the moment from them but encouragingly 50k on the bid from two other mm's and i gather that the loose stock is being taken up..."

For reference info :

http://business.timesonline.co.uk/article/0,,8211-2134406,00.html

PartyGaming advances as broker bets on strong trade
By Joe Bolger April 14, 2006

HOPES of a solid update from PartyGaming next week helped to propel the online gaming group to the top of the FTSE 100 risers board, as analysts suggested that investors top up their holdings.
Analysts at Dresdner Kleinwort Wasserstein expect the group to report first-quarter revenues up 46 per cent to $324.8 million (185.4 million) on Tuesday, compared with the same period last year, on the back of growth in revenues from poker and blackjack games.
However, PartyGamings house broker reckons that the shares are being unnecessarily restrained by fears over possible American legislation that could outlaw online gambling. In a note to clients, the broker said that the companys share-price rating exaggerates both the likelihood of prohibitive legislation and the possible impact of any legislation that is passed.

Richard Carter, an analyst at Numis Securities, took the opportunity to upgrade his full-year profits forecasts, stretching the top end of expectations. He raised his pre-tax profits forecast by 4.4 per cent to $738 million, on the back of indications that the company had had a strong trading period. This pushed PartyGamings shares up 6p to 151p, leaving them on course to breach the 2006 high of 154p, reached in January.

That 1.9m trade should be the end of it now, might have to start adding a few myself now, bargain levels :) Seller should be cleared, is now the time to buy ;) :)

PP

Why do you think there has been such a large seller with the website due to go live in the summer? I am a little concerned they know more than us, also that this has been in freefall for too long now.
Would appreciate your views.

This is a very high risk share considering it was 35p a few months ago.

dale4j and hyleo, I am expecting weakness now, but things should pick up once the marketing campaign gets under way and the site is live in Q2. The SP should fly in Q3 and Q4 when the revenues come in and are seen. Its a risk, but the upside is massive if its a success, and there is no reason why not, they have 2 good deals signed already.



Holding(s) in Company

RNS Number:7511B
Bits Corp PLC
20 April 2006
Bits Corporation Plc (the "Company")

Holding in Company

The Company was notified on 20 April 2006 by Credit Agricole Cheuvreux Limited that they have an interest in 2,582,500 of the Company's ordinary 1p shares ("Ordinary Shares") representing 4.48 per cent. of the issued Ordinary Share capital of the Company.

Thanks for your response hyleo and PP. The big sell now seems to be over with the RNS earlier today from Man Financial - I think this explains the recent drop in the SP.
Good to see Credit Agricole investing, this should hopefully mean the SP will start ro rise again.

L2 4 v 1 and all blue, must be a few shorts closing out now on the insti buying news.

This post from macansy on AFN, and therefore good info imo :

macansy77 - 21 Apr'06 - 08:38 -
spoke with the CEO yesterday - he's currently away in Egypt. He's well aware of the current situation with Bits sp and what has been happening with certain positions unwinding. He is also well aware that Bits need to have a fairly constant news flow whilst in this phase of its development but obviously can't manufacture news out of thin air - also they have to be cautious as to how much information is given away...

the good news however, is that things are gearing up pretty quickly - with a fairly constant stream of news starting possibly as soon as next week. This will include distribution deals amongst others although i'm also looking for name change, change of broker etc

Some more info :

macansy77 - 26 Apr'06 - 16:03 -

right, sorry for delay...


have gone over the ppt presentation from the placing and my notes and points of relevance are as follows... apologies in advance if it's a little disjointed and this was my hurried take on events so there may be errors ;-)

1) Bits technology and experience will be used in the form of a 3D client front end for Microgaming partners, note the plural - Palace Group are the first, but i expect there will be more deals with further MG operators... these will encompass poker and casino platforms..


2) Bits tehnology will enable a new experience and advanced features that are not available from anyone else - this will include the utilisation of VOIP, player identity/customisation and also localisation of games, speech and help etc - most online poker is not localised...

3) Playwize will do exactly what it implies and help beginner, novice and experienced players alike get more from the game and educate them to become better players, helping them to get better results and graduate to playing for real... this is a real attraction for the operators as they attempt to get more people taking up the game...

4) Playwize techonolgy will be licensed to other MG operators - instant player liquidity being provided by MG and Palace Group initially

5) Bits will concentrate on central Europe, Asia and then Eastern Europe, but US product development is near final and launch should be Q2.

6) Free PC version of game will be distributed via mainstream publication inserts, key retail outlets, OEM giveaway with PC hardware, download sites and special key partner versions...

7) Playwize will establish a fun gaming model (like loyalty points) which will then assist in the conversion of fun players to real money gaming players...

8) 10million free games to be distributed within 1 year

9) Target of 5% fun player take up and from this a conversion rate of 15 to 1 so approx 33333 real money players in year one...

10) 3D client will will generate license fees and revenue share from MG partners...

11) Rollout of Payout Poker and Casino game from Q2, euro version to be co-published under Playwize brand... Namco handling North American distribution..

BIT of blue today.

A good summary of previous media comments :

v0d00child - 27 Apr'06 - 08:12 - 2102 of 2104


BIT Corp in the Press:
Daily Mail Market Report Friday 9th December, p 83.
Bits Corporation, the video games company jumped 3p to 17.62p on confirmationit is in talks with a number of parties with a view to establishing an onlinegambling presence. Whispers suggest it could involve video games developer Namco.
>> Done and dusted
Guardian Market Forces Friday 9th December, p 30.
Computer games developer Bits Corp gained 3p or 20% to 17.62p on confirmation of contract talks with several online gaming companies. Traders believe there are six companies bidding for the right to use Bits technology and a revenue sharing deal with one of them could justify a share price nearer to 30p.
>> Microgaming/The Palace Group
Daily Mail Footsie soars as spring fever hits Geoff Foster, 15 March 2006
Bits Corporation eased p to 20p despite growing speculation that a deal is in the pipeline. The company said in December that it is keen on establishing an online gaming presence. Dealers now hear that it is on the verge of acquiring a business from 888 Holdings (2p dearer at 186p)which will result in a change of name to Playwise
>> More to follow?

A good post from AFN :

v0d00child - 30 Apr'06 - 12:09 - 2127 of 2131


Video for "Payout Poker and Casino" link:

http://streamingmovies.ign.com/ps2/article/644/644160/payout_anounce_082205_wmvlow.wmv

Worth a visit if you've not seen what Bits bring to the market. This isn't new but it shows that Bits offers the complete casino experience, tie this in with broadband gaming, fully interactive learning tutorials and the real deal betting online... it's hard not to get excited. Can't help but feel that this could be very addictive, especially with VOIP [voice over ip/network], it'll certainly gives the entertainment factor that we've heard people talk about. Backending poker, roulette, slot machines... etc.. to real payouts, all from one vendor [Microgaming] looks very attractive, up front license payment[maybe] and revenue share[Palace Group]. I suppose that should make it revenue generating from the off!! At least that's the indication from the RNS;

"The Company expects to launch its inaugural product and web site during the second quarter of 2006, with revenues forecasted to be earned during the third quarter of 2006."

... lets not forget this is already paid for as well, getting on for nearly a year now;

"The results for the six months ended 30 September 2005 reflect the investment
made by the Group in the development and leveraging of new technology for the
internet gambling arena together with devising a strategic marketing initiative
to complement the Group's entry into this market."

... finally, will Bits benefit from its traditional sources of revenue, as it seems most are focused on the gambling side of Bits....

"The Group is also working on a number of other development opportunities both
within the traditional video gaming market and the internet gambling arena,
which will be announced once they have come to fruition.

Prospects

The Group remains focused on the design and development of video games for all
games consoles together with utilising our experience and knowledge of the
consumer games market in other related fields."

"Bits Studios today announced that it has acquired the rights to make a game based on The Good, the Bad, and the Ugly in a deal with MGM Interactive, according to a report by The Hollywood Reporter." ...due in 2006 apparently, see news release;

http://uk.gamespot.com/psp/action/thegoodthebadandtheugly/news.html?sid=6133059

Fairground Gaming Holdings PLC 04 May 2006

FAIRGROUND GAMING HOLDINGS PLC
('Fairground Gaming' or 'the Company')

Acquisition of The Spin Palace Group and suspension of trading on AIM

The Directors of Fairground Gaming ('Directors') are pleased to announce that the Company has entered into a conditional purchase agreement to acquire all of
the online gaming businesses and subsidiaries, which collectively form The Spin Palace Group ('the Acquisition') from Roundit Limited, ('the Vendor'), for a
maximum consideration of US$66m.

Highlights:

The Acquisition is the first by Fairground Gaming since admission to AIM in October 2005, is in line with the Company's strategy and is conditional on re-admission to trading of the enlarged issued share capital;
The Spin Palace Group comprises two recently combined businesses, Spin Palace and Piggs Casino, and is a licensed online casino and poker group offering over 200 different games to a global customer base;
Core domains include www.spinpalace.com, www.rubyfortune.com and www.piggscasinos.com;

[b]The technology platform of the Acquisition is underpinned by Microgaming considered by the Directors to be the leading provider of software to online casinos;[/b]
Scope for further integration and exploitation of new products;
Existing management teams and staff to remain with the enlarged group on completion of the Acquisition;
Acquisition incorporates a marketing business and scalable call centre to which the Vendor previously outsourced these functions as well as an award-winning affiliate programme;
Initial consideration of approximately US$46m, consisting of US$10m cash payment from existing Fairground Gaming resources with the remainder being satisfied through the issue of ordinary shares in Fairground Gaming
('Ordinary Shares') and warrants over Ordinary Shares ('Warrants') in Fairground Gaming;
Further earnout consideration payable of up to US$20m, dependent upon the EBITDA of The Spin Palace Group for the year to 31 December 2006; and
The Acquisition constitutes a reverse takeover for the purposes of the AIM Rules and accordingly the Directors have requested that Fairground Gaming's shares be suspended from trading on AIM with immediate effect until such time as an AIM admission document is published.

Commenting on the proposed Acquisition, Evan Hoff, Chief Executive of Fairground Gaming, said: 'The Spin Palace Group will be the cornerstone in the execution
of Fairground Gaming's consolidation strategy. Both Spin Palace and Piggs Casino are well managed and cash generative businesses and, combined, we believe they have the potential to be scaled upwards to enhance future revenues of the Company. We look forward to working with management in growing the business and seeking out complementary acquisitions that will assist us in achieving further scale and product and geographic diversification. We look forward to providing further information to investors in due course.'

Introduction

The acquisition of The Spin Palace Group, which is conditional on readmission of the enlarged issued share capital of Fairground Gaming to AIM, is in line with
the Company's stated strategy to take advantage of the trend for consolidation within the online gaming sector in order to build a diversified portfolio of online gaming businesses through a combination of strategic acquisitions
accompanied by subsequent organic growth.

The Spin Palace Group, first incorporated in 2001, is a licensed online casino and poker group that possesses a global and diversified customer base. The Spin Palace Group offers to its customers over 200 different online casino and poker games. The Acquisition brings to Fairground Gaming a marketing and scalable call centre capability as well as an award-winning affiliate programme. The principal
online gaming sites of The Spin Palace Group are
www.spinpalace.com, www.rubyfortune.com and www.piggscasinos.com.

[b]The technology software to operate and develop the online casino and poker games is supplied through an agreement with Microgaming. [/b]

The Acquisition constitutes a reverse takeover of Fairground Gaming under the AIM Rules and therefore, in accordance with these rules, the Directors have
requested that the Ordinary Shares be suspended from trading on AIM with immediate effect until such time as the Company publishes an AIM admission document. It is anticipated that the AIM admission document, which will include a notice convening an extraordinary general meeting ('EGM') of shareholders at which resolutions ('Resolutions') will be proposed, inter alia, to approve, the Acquisition, will be published during May 2006.

Upon the Resolutions being passed at the EGM (or any adjournment thereof). Fairground Gaming intends to apply for the enlarged issued and to be issued share capital to be admitted to trading on AIM subject to certain conditions
being satisfied. Dealings on AIM in the enlarged issued share capital should commence as soon as practicable following the conclusion of the EGM. If the conditions of the Acquisition are not satisfied, dealings in the existing
Ordinary Shares will resume trading on AIM as soon as practicable thereafter.

Terms of the Acquisition
Fairground Gaming, through its wholly owned subsidiary, FGH Acquisitions (Spin) Limited, has conditionally agreed to acquire from the Vendor all of its online gaming businesses and subsidiaries. The Acquisition has an effective date of 1st January 2006, which is the date from which all revenues and costs, assets and liabilities will accrue to Fairground Gaming. In accordance with normal accounting practice however, the profit and loss accounts of the enlarged group
will only recognise income and expenditure of The Spin Palace Group from the date of completion.

The maximum consideration payable to the Vendor under the terms of the agreement is US$66 million. If the earnout target of US$9.8 million of earnings before interest, tax, depreciation and amortisation ('EBITDA') of The Spin Palace Group for the year ending 31 December 2006 is achieved, the consideration paid would represent an overall multiple of 6.7 times EBITDA.

The consideration is to be satisfied as follows:

an initial consideration of approximately US$46 million equating to 8 times the Spin Palace Group's audited EBITDA for the year ended 31 December 2005 to be satisfied as to US$10 million in cash from existing resources
with the remainder being satisfied through the issue of Ordinary Shares and Warrants; and
a deferred consideration of up to US$20 million calculated on a sliding multiple applied to The Spin Palace Group's audited EBITDA for the year ending 31 December 2006 to be satisfied as to not less than 25 per cent. but
not more than 50 per cent. in cash with the remainder to be satisfied by either Ordinary Shares, Warrants and debt or a combination thereof.

Ordinary Shares to be issued to the Vendor as part of the initial consideration will be issued at 75 pence per share and will be subject to lock-up and orderly market arrangements. The Ordinary Shares to be issued to the Vendor as part of the deferred consideration will be issued at a price per share equivalent to the lesser of the average of the closing mid-market price of the Ordinary Shares from October to December 2006 and the average of the closing mid-market price of the Ordinary Shares in the 7 trading days prior to 31 December 2006 and will also be subject to lock-up and orderly market arrangements.

The terms of the Acquisition require that the issue of Ordinary Shares to the Vendor shall not result in the Vendor's aggregate shareholding in Fairground Gaming exceeding 29.9 per cent. of Fairground Gaming's issued ordinary share capital from time to time (the 'Cap'). If the issue of Ordinary Shares pursuant to the initial consideration or the deferred consideration would result in the Vendor's shareholding exceeding the Cap, then the Vendor shall receive in lieu thereof such number of Warrants as would equal the number of Ordinary Shares
that the Vendor is entitled to receive. The exercise price for the Warrants is nil and all the Ordinary Shares shall be issued fully paid. The Warrants are therefore exercisable by the Vendor as the issued share capital of Fairground Gaming is enlarged following further acquisitions and/or fundraisings.

Background to the Transaction
The stated strategy of the Company is to take advantage of the trend for consolidation within the online gaming sector in order to build a portfolio of online gaming businesses. The online gaming sector is highly fragmented where only the major operators enjoy significant scale or brand recognition. Against this background, the Directors believe that the operating model of many companies within the online gaming sector is highly scalable providing
opportunities for greater efficiency cost savings upon consolidation.

The Directors consider that the Acquisition represents the first step in implementing the Company's strategy. Through the operation of online casinos and online poker, the Acquisition generates two distinct lines of revenue and
sources of profit. The Spin Palace Group has achieved levels of organic revenue growth comparable to other online gaming competitors and has implemented high quality operating and management information systems.

The Spin Palace Group has a suite of management information systems, which the Directors believe will help facilitate the integration of the Acquisition with other future acquisitions.

As well as being fragmented, the online gaming sector is currently recording substantial annual rates of growth. As the sector matures, the quality of the brands offered by operators as well as their presence in the marketplace will be crucial in determining those, which are successful. The Spin Palace Group possesses several key brands through its online domains including

www.spinpalace.com, www.rubyfortune.com and
www.piggscasinos.com, highlighting the attractiveness of the Acquisition to the Company.

Information on The Spin Palace Group
The Spin Palace Group is a licensed online casino and poker group, which possesses a global and diversified customer base. Unaudited management accounts demonstrate that in 2004, The Spin Palace Group recorded an unaudited Net Win (
the difference between amounts wagered by active players and the amounts paid out to active players minus bonuses paid out) of US$19.2 million in 2004 rising to US$29.9 million in 2005. The Spin Palace Group had approximately 9,300 active casino players (players who are playing for money) in March 2006 compared to 3,380 active players in March 2004 representing an annual compound growth rate
of 65%. The Spin Palace Group had approximately 2,100 active poker players (players who are playing for money) in March 2006 compared to less than 500 in March 2004 representing an annual compound growth rate of 104%.

Approximately 97% of the Net Win revenue in 2005 was generated through the online casino activities, which includes slots, roulette, baccarat and blackjack
Net Win revenues from Poker accounted for the remainder.

The Spin Palace Group offers its customers (who may use either a download or a flash version of the software) over 200 different online casino and poker games.
The number of games offered by The Spin Palace Group is a key strength, helping to maintain the number of active players using the websites.

The Spin Palace Group is also a member of the Microgaming Prima Poker network, which provides a network of players with the ability to play poker online against other poker players ( www.primapoker.com ).

The Directors of Fairground Gaming consider that the technological and operational infrastructure, which underpins the operations of The Spin Palace
Group is highly scalable, thus allowing for significant economies of scale as Fairground Gaming seeks to achieve both organic growth and growth through strategic acquisitions. The Company also intends to make effective use of cross-marketing opportunities between the online gaming sites.

The Spin Palace Group collectively comprises two separate businesses, Spin Palace and Piggs Casino, which are both licensed by the Kahnawake Gaming Commission in Canada's independent Mohawk Territory of Kahnawake.

Current Trading

The latest management accounts of The Spin Palace Group indicate an unaudited Net Win of US$9.7 million in Q1 2006, against US$7.8 million in Q4 2005, representing quarter on quarter growth of 24%. Casino Net Win was US$9.4m (US$7.6m in Q4 2005) and poker Net Win was US$0.34 million (US$0.28 million in Q4 2005), representing growth of 24% and 21% respectively. Overall, Net Win in Q1 2006 was 33% ahead of Net Win in Q1 2005, comprising growth in casino Net Win
of 30% and poker Net Win of 162%.

Spin Palace

The primary domains of Spin Palace are detailed below:

Spin Palace Casino ( www.spinpalace.com )
Ruby Fortune Casino ( www.rubyfortune.com )
Spin Palace Poker ( www.spinpalacepoker.com )

The flagship brand of Spin Palace is the Spin Palace Casino, which offers both online casino and poker gaming comprising of over 173 games, including 19 progressive jackpots.

The secondary brand of Spin Palace is the Ruby Fortune Casino, which amongst other objectives, is designed to appeal to the female customer segment of the online gaming sector.

The Spin Palace Casino was awarded 'Best New Casino' in 2002 from Casinomeister, an independent body recognised in the online gaming industry as an advocate for players. In 2002, it also won several awards from 'Gambling Online Magazine' based on readers' polls. Ruby Fortune Casino was also given an honourable mention by the 'Gambling Online Magazine' in the 2005 award for top new online
casino.

In addition, Spin Palace utilises its own common affiliate programme, called Wagershare (www.wagershare.com), which has received several awards including the 'Casino Affiliate Program of the Year' from Casinomeister in 2003 and 2004.

Spin Palace is accredited by the self-regulating industry body, eCogra ('E-Commerce and Online Gaming Regulation Assurance') and has been awarded eCogra's players seal of approval.

Piggs Casino

The primary domains of Piggs Casino are detailed below:

The Piggs Casino (www.piggscasinos.com)
Jackpots In A Flash casino (www.jackpotsinaflash.com)
Mummysgold (www.mummysgold.com)
Poker333 Poker (www.poker333.com)

The flagship brand of Piggs Casino is The Piggs Casino, which offers both online casino and poker gaming currently comprising 179 games, including 19 progressive jackpots.

The secondary brands of Piggs Casino being Jackpots In A Flash, Mummysgold Casino and Poker333 were launched in order to promote cross marketing between the online gaming websites, a direct response to the tendency for customers to
switch between websites.

Piggs Casino is accredited by the self-regulating industry body, eCogra ('E-Commerce and Online Gaming Regulation Assurance') and has been awarded eCogra's players seal of approval.

Enquiries:
Fairground Gaming +44 (0)1624 616061
Evan Hoff

Daniel Stewart & Company Plc +44 (0)20 7776 6550
Alastair Cade
Nicholas Marren

Gainsborough Communications +44 (0)20 7190 1705
Julian Walker

Man Holding Up, this might mean we have seen the end of the forced seller, and the start of better things :)


Bits Corp PLC
08 May 2006
Bits Corporation Plc (the 'Company')
Holding in Company

The Company was notified on 8 May 2006 by Man Financial Limited that they
have an interest in 4,113,549 of the Company's ordinary 1p shares ('Ordinary
Shares') representing 7.14 per cent. of the issued Ordinary Share capital of
the Company.

8 May 2006

This information is provided by RNS
The company news service from the London Stock Exchange

Coming soon, the sooner the better :)

http://www.playwize.com

Credit Agricole increase their holding :) !


Bits Corp PLC
12 May 2006

Bits Corporation Plc (the 'Company')

Holding in Company

The Company was notified on 12 May 2006 by Credit Agricole Cheuvreux Limited
that they have an interest in 3,175,000 of the Company's ordinary 1p shares
('Ordinary Shares') representing 5.51 per cent. of the issued Ordinary Share
capital of the Company.


12 May 2005

Post from another board :


screwem - 16 May'06 - 11:09 - 82 of 102

ready for damnation then...spoke with BITs (not Foo) and here is what I learnt....

- in hindsight should have made a statement re drop
- playwize all on track for Q2 launch
- marketing on track for Q2 launch
- looking at getting new broker in Q2 (you can guess why!)
- following launch, will prob look at putting numbers out regarding revenues etc (july/Aug time)

I think the shorts are starting to panic a little now :)

A good week so far for BIT, and lets hope we can get back to the 20p levels while waiting for the news to come this month.