Aug 1: CaliPlay float latest victim of debt crunch
Aug 1: CaliPlay float latest victim of debt crunchPlaytech/Caliente, the week ahead, Lottery.com, the shares week, GLP earnings call, Lottomatica H1, startup focus - Betswap +MoreGood morning. On today’s agenda:
Playtech/CalienteHigh and dry: On Friday, Playtech announced the plan that would have seen the Caliente joint-venture vehicle CaliPlay bought by the Tekkorp Digital Acquisition Corp. SPAC has been abandoned due to the escalating cost of capital.
Debt crisis: TTB Partners, the erstwhile pursuer of Playtech, also pinned the blame for its failure to consummate a deal on capital market conditions. Elsewhere in the sector, 888 has also been struggling to find investors for its new £1bn of bond debt. Trading update: In a brief statement, Playtech reiterated its mid-July statement that it was “trading ahead of expectations”.
Recall: In the wake of the TTB failure, speculation is rife over what happens next at Playtech. While sources have suggested the rumored return to the table of JKO is a “no-go”, there are suggestions that Aristocrat might also renew contact. Meanwhile, Entain are thought to be in prime position to snap up the Playtech-owned Snaitech. **Sponsor’s message**: Venture capital firm Yolo Investments manages €550m in capital across 80 of the most exciting companies in fintech, gaming & blockchain. Their Gaming Fund, regulated by Guernsey Financial Services Commission, a dedicated 29-company, €183m AUM portfolio has invested in fast-growth assets including Dabble, Kalamba, SimWin & ThriveFantasy. The week ahead
Roll call: MGM Resorts and IGT (Tues), Caesars (Weds), Bally Corp, Penn National, Rush Street Interactive (all Thurs) and DraftKings (Fri) all report this week. It’s a sin: Top of mind for the analysts early in the week will be what the Las Vegas operators are seeing in terms of any negative consumer reaction to the worsening economic situation with the US now officially in recession.
Be prepared: The analysts at Macquarie said the Strip operators were in a better position to handle the economy’s choppier waters due to “leaner cost structures”.
The online focus remains on the prospects for profitability. Recall, a note from the analysts at JMP last week noted that recent promo data suggests there should be revenue beats across the board. What we’ll be writingFirst Tuesday: Tomorrow sees the debut of our new regular monthly newsletter focusing on the news and views about growth companies within the better and gaming sector.
Lottery.com
Numbers up: The lottery reseller is on the verge of collapse after it announced on Friday it “did not have sufficient financial resources” to fund operations or pay existing obligations. It has furloughed staff, saying it didn't have the cash to pay $425k of payroll obligations.
An unraveling: Intimations of trouble at Lottery.com came with a June 30 SEC release when it said auditors had raised concerns about non-compliance with state and Federal laws regarding ticket procurement as well as accounting issues. It led to the resignation of CFO Ryan Dickerson.
Lottery.com share price performance July 29 The shares week
Rollercoaster: PointsBet ended up giving up much of its gains for the week on Friday trading in Sydney after it reporting its Q4 earnings. The share price dropped nearly 11% on the day after initially rising 11% in early trading. The shares still ended the week up just over 2%. PointsBet share price, 29 July Strong positives: Looking ahead to this week, the analysts at Jefferies suggest that given the “known trends” around Las Vegas, regionals, lottery and leisure trends they suggest strong earnings could drive positive stock performance.
Lottomatica H1
Virus-free: The results presentation pointed out that the LTM EBITDA figures of €433.9m are the first for over two years that don’t include any lingering Covid restrictions.
Ambitions: While CFO Laurence van Lancker said North American M&A was not part of Lottomatica’s plans, he did dispel the suggestion on the call that there wasn’t room for acquisitions in Europe.
Political football: Asked about whether the political climate for betting and gaming would deteriorate after the September general election in Italy, CEO Guglielmo Angelozzi was sanguine, suggesting the parties vying for power had softened previous stances against the sector.
GLP Q2 earnings callYou zig, others zag: On a surprisingly fractious call at times - CEO Peter Carlino: “We didn't want to deal with guidance in the first place”; unidentified analyst: “Well, then don’t give guidance” - GLP reiterated the case put by VICI the previous day that the cost of capital for the gaming REITs was now more attractive - and arguably more attainable - than bank debt.
Trouble every day: Meanwhile, Carlino made the bold claim that in any recession, regional gaming revenues were “essentially bulletproof”. Or as CIO Matthew Demchyk said, “drive through is better than fly through”. Startup focus - BetswapWho, what, where and when Co-founders Brent Winston (CEO) and Joshua Jackson (CTO) formed the company in June 2020. The Isle of Man-based company is a secondary marketplace for use by platform providers and sportsbooks to buy or sell bets. Funding backgrounder: Betswap has to date completed pre-seed fundraise for an undisclosed amount from two high-net-worth individuals with a history of success in energy, oil and gas, blockchain and igaming/sports-betting.
So what's new? BetSwap recently entered into supply agreements with OpenBet and Amelco and has recently entered into binding LOIs with clients of both OpenBet and Amelco It is actively discussing and negotiating to integrate its technology into some of the biggest sportsbooks in North America.
The longer pitch: Winston says the opportunity here is quite large, suggesting that cashout only appeals to a limited percentage of users. “Many users stay away from cashout - there is no transparency, the experience is limited and broadly speaking, quite poor,” he says.
The thrill of the chase: With this done via a white label, users will only see the marketplace feature on the operator app in question.
Earnings in briefBlueBet said net win rose 27.3% to A$12.8m on turnover that rose 31.3% to A$126.7m. The company recently secured market access to Iowa, its fourth US state, via a deal with Caesars. It will launch there under the brand name Clutch Bet. The company said it has cash balances of A$47.3m, giving it the “runway” to execute its “capital-lite” US strategy. Analyst briefsEvolution: The team at Redeye say the evidence of a growth deceleration in Asia combined with more progress in North America means that while forecasts remain largely unchanged following the recent Q2 earnings, the growth mix has “shifted”. This should be positive for the “risk perception” of Evolution. VICI: The team at Macquarie said that with the multiples being paid for Las Vegas and regional gaming assets at record levels, it “bodes well for the outlook in the gaming REIT sector”. The team also noted that Caesars was “publicly shopping” a Strip asset at present, “one asset in a larger embedded pipeline”. Datalines - MacauLess than zero: GGR for July was down 95.3% to $49m, the worst monthly performance from the pandemic years. MoM the total was down 83.9% as the authorities closed all casinos for 10 days in compliance with China’s zero-Covid policy. Compared to July 2019, GGR represented just 1.3% of the total.
NewslinesKindred has decided upon a share buyback program with the intention of buying up to 23m shares or around 10% of the company’s available stock. Lioness’ share: Entain said it had taken 1.5m bets on yesterday’s Women’s Euro22 final between England and Germany with 14% of those bets being made by women. What we’re readingExtinction event: Red Rock’s decision to demolish its Henderson Fiesta property leaves room for smaller competitors. On socialCalendar
Contact us
If you liked this post from Earnings+More, why not share it? |
Older messages
The startup month - August
Friday, August 5, 2022
The funding crunch (or is it?), Underdog Fantasy leads the month's fundraisings, inside Future Anthem's recent funding round and a startup (re)focus on SnapOdds.
Aug 3: Caesars: ‘No more $100m loss-making quarters for digital’
Friday, August 5, 2022
Caesars Entertainment, Full House Resorts and IGT Q2s, Massachusetts analyst reaction, igaming tax estimates +More
Aug 4: Hornbuckle: ‘We’re rockin' and rollin'
Friday, August 5, 2022
MGM Resorts and Everi Q2s, Caesars Entertainment analyst update, OSB analyst update +More
Aug 4: Earnings extra: Penn takes an entertaining turn
Friday, August 5, 2022
Penn Entertainment and Bally Corporation publish their respective Q2s
Aug 5: Weekend Edition #58
Friday, August 5, 2022
FuboTV's betting strategic review, RSI and Golden Entertainment Q2s, Penn and Bally analyst updates, sector watch - crypto +More
You Might Also Like
Headlines Saying FTX Is Paying Everyone 100% Are Inaccurate
Wednesday, May 8, 2024
Listen now (2 mins) | Today's letter is brought to you by Consensus 2024! Consensus 2024 is happening May 29-31 in Austin, Texas. This year marks the tenth annual Consensus, making it the largest
💥 Million Dollar Newsletter Ideas 💥 CreatorBoom
Wednesday, May 8, 2024
$5M/Year With 3 Businesses, $500k/Month Creator, 41 Newsletter Tools, How To Scale Your Business, Launch Your Minimalist Newsletter in 5 days.
A deal backlog in healthcare services
Wednesday, May 8, 2024
Our latest Private Capital Indexes; female founder momentum slows; Wayve drives off with Europe's largest AI VC round; mapping Africa's VC ecosystem Read online | Don't want to receive
The Power of the 30-for-30 Approach
Wednesday, May 8, 2024
Be consistent with your work. Be consistent with your goals.
11 Public Speaking Techniques from the World’s Greatest Speakers
Wednesday, May 8, 2024
This is a deeply-reported, practical guide on public speaking techniques from the world's greatest speakers. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Personalization vs. Privacy
Wednesday, May 8, 2024
The tug-of-war over data.
🔔Don't sell your stocks just yet
Wednesday, May 8, 2024
Wall Street cautions against dumping equities before the presidential election
Warner Bros. Discovery Sport and CNN International create marketplace for sports and political ad dollars
Wednesday, May 8, 2024
Warner Bros. Discovery has turned to programmatic guaranteed in its latest attempt to capture more ad dollars. May 08, 2024 PRESENTED BY Warner Bros. Discovery Sport and CNN International create
MAILBAG! The future of college athlete advocacy, coach burnout and more
Wednesday, May 8, 2024
and FINE I'll answer a few video game questions too
Level 80 (analytics tools)
Wednesday, May 8, 2024
Today's hack SQL-based deep analytics tools for super growth hackers: periscopedata.com, modeanalytics.com, looker.com Everybody knows Google Analytics, Mixpanel, Kissmetrics. As for me, for deep