Earnings+More - Weekend Edition #69
Weekend Edition #69Caesars’ Times Square bid, Sightline’s JP Morgan investment, Entain’s new term loan, sector watch – affiliates +MoreGood morning and welcome to the latest Weekend Edition. On today’s agenda:
First big suit on the moon and he starts to play golf. Caesars’ Times Square pushThe casino giant has teamed up with SL Green Realty in proposing a casino development at 1515 Broadway. Be a part of it: Caesars Entertainment and its real-estate partner promise “significant investments in security, traffic and mass transit improvements” in Times Square as part of its bid to open a casino in the heart of midtown.
Recall, New York is allowing three more casinos in the state, with the restrictions around proximity to New York City removed.
** SPONSOR’S MESSAGE: BettingJobs is the global leading recruitment solutions provider to the iGaming, Sports Betting and Lotteries sectors. Boasting a 19-year track record supporting the iGaming industry, and with a team of experts and world class knowledge, it’s no surprise BettingJobs is experiencing rapid growth with outstanding results. Does your company have plans to expand teams to cope with strong growth and demand? Contact BettingJobs.com today where their dedicated team members will help you find exactly what you are looking for. JP Morgan takes Sightline stakeThe cashless payment provider has secured a strategic investment from the bank’s payments arm. Cash boost: Sightline Payments has received an unspecified investment from JP Morgan Payments, with the two working on the provision of an “integrated omni-channel solution” for both land-based and online gaming companies.
Entain’s new termEntain has upsized the term loan needed to pay for the €600m SuperSport acquisition to £1bn after what it claims was “strong demand” from investors. Plus, plus: The new term loan clearly shows the extent to which debt is now more expensive, with the price now the overnight funding rate plus 10 bps credit adjustment spread plus a further 350bps margin. With hedging, Entain said the debt would result in an overall fixed cash cost of financing of 6.2% until September 2024.
Entain SustainAnticipation: Shifting the emphasis “from intervention to anticipation” on player safety and a £100m investment in ESG projects over the next five years were the highlights of Entain’s corporate governance day. CEO Jette Nygaard-Andersen said there was “no conflict between growth and sustainability”. Sector watch – affiliatesThe big news this week was Playmaker’s acquisition of US-focused online casino affiliate Wedge Traffic for up to $31.2m in cash and shares, including the earnout. Crosstown traffic: The deal for Wedge sees Playmaker pay $8.5m in cash and a further C$2.8m of shares with an earnout set at a maximum of $20.7m to be paid according to certain EBITDA thresholds being hit. In the year to December 2021, Wedge generated revenue of $2.9m and EBITDA of $1.17m.
Playmaker backgrounder: In Q2, Playmaker said pro forma revenue was up 10% to $7.4m, while pro forma adj. EBITDA was down 14% to $1.9m. The group agreed a $20m convertible loan with Beedie Capital in July. Playmaker’s recent acquisitions include deals to buy JuanFutbol and World Soccer Talk. Analyst takesCBRE on G2E: The team at CBRE suggested the “disconnect” between valuations and actual performance has “never been wider”, with concerns over the economy meaning investors are staying on the sidelines. The team added that despite the bleak financial outlook, M&A was “not dead”.
Downloads: Data from week 6 of the NFL season (Tuesday to Monday) showed the number of downloads was up 85% YoY at 245k for the operators that control ~90% of the online market share, said JMP. This compared with a 50% rise in week 6 of 2021. For the season to date, download numbers were up 42%. DatalinesPennsylvania: Retail casinos GGR in September was down 1% YoY to $280.1m and down 7.6% on a same-store basis from 2019.
🎯MGM leads the way in iCasino Michigan: Sports-betting GGR in September rose 85.8% YoY to $50.4m, of which net revenue came in at $27.2m with $20.6m of promotions. Mobile handle rose 2.9% YoY to $364.5m.
🎯MGM leads overall in Michigan Arizona: August GGR hit $36.3m on a combined online and retail handle of $361m. Free bets came to $8.5m. Louisiana: Land-based GRR hit $189.2m, up 18.5% YoY and 3.1% above 2019 despite the impact of Hurricane Ida. Sports-betting GGR for September came in at $32.3m on $207.5m in handle. Maryland: Sports-betting GGR in September increased 26.8% to $6.5m on handle that was down 8% to $31.3m. This week on E+M
NewslinesFlutter announced Jonathan Hill is to become the new COO with Paul Edgecliffe-Johnson joining as CFO from IHG in H123. Mass attack: Almost 30 brands are set to join the race in Massachusetts, according to LegalSportsReport. Kambi has signed a deal for retail sports-betting provision with Great Canadian Entertainment. OddsJam has announced that it has added industry leader Benjie Cherniak as a strategic advisor. Gamification specialist Low6 has partnered with the Canadian online sportsbook and casino Bet99 to launch NFL and NHL-themed free-to-play sports-betting products. LeoVegas’s new sports-betting brand BetUK has secured 600 advertising spots at UK racecourses following its deal with Arena Racing. Genius Sports has become the official data partner for Australia’s Professional Soccer Leagues. On socialCalendar
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