Earnings+More - Gambling’s big earnings week
Gambling’s big earnings weekMGM, Caesars, Flutter and DraftKings to report, GLP call recap, Churchill Downs share reaction, startup focus – BettorTakes +MoreGood morning. On the agenda:
A big week for…The biggest names in betting and gaming get set to report earnings. The quad: The big two in Las Vegas, MGM Resorts and Caesars Entertainment, kick off proceedings later today and tomorrow, both AMC. Then fresh from its dual listing shareholder vote, Flutter will issue a statement on Wednesday before DraftKings issues earnings on Thursday with the call following on Friday morning, eastern.
Konnichiwa: The big news for MGM came in mid-April when its plans for a resort casino in Osaka got the nod from the Japanese authorities. Analysts at JMP said at the time it was a “dream come true” for MGM which with its partner Orix will be investing up to $10bn in the project.
Priced in: As with MGM, rival Caesars is likely to be ahead of forecasts on Las Vegas after state numbers showed the Strip running 12% ahead of 2022 in Q1. Recall, CEO Tom Reeg said during the Q4 call it was “hard to express how strong Vegas is right now”.
High times: Flutter had a busy end of last week with shareholders giving their 100% backing to the US dual listing plans and the company responding to the release of the UK government’s ‘High Stakes’ White Paper on gambling.
Paying the price: The debate around profitability will intensify at the end of the week as DraftKings produces its earnings AMC on Thursday before its earnings call BMO on Friday.
** SPONSOR’S MESSAGE ** Challengers welcome GeoComply and Citi invite start-ups and emerging operators and suppliers to free NYC Summit with superstars of gaming Avengers assemble: innovators, disruptors and grizzled veterans set to share hacks, tips and tricks with developing companies targeting regulated gaming markets in the US.
Come with us: the US gaming market can be a tough nut to crack. To get some free advice from some who have cracked it, apply for this exclusive event here. Also next weekPenn Entertainment: Having completed its acquisition of Barstool in mid-February, Penn missed its earnings target but enjoyed an online quarterly EBITDA profit of $5m in Q4 despite a $10m hit from Mattress Mack during the World Series.
Rush Street Interactive: In early March CEO Richard Schwartz said the group had made “great strides” and with $180m of cash in hand and no debt was “fully funded” to reach EBITDA positive territory by H223. Calendar
Forthcoming event
Traction in MacauRevenue climbed to a three-year high of $1.8bn in April. The monthly tally reached its highest level since January 2020, according to the figures from the Macau Gaming Inspection and Coordination Bureau, up 450% YoY. This comes ahead of the five-day Labor Day holiday that runs through to this Wednesday, May 3.
Call review – GLPCall an ambulance: Gaming’s resilience in the face of a choppy economic backdrop was praised by CIO Matthew Demchyk which helps explain GLP’s focus on a “purposefully conservative” balance sheet.
Earnings in briefBetMakers: The process of “normalizing its cost base” as cash receipts rose 9% to A$24m. Cash outflows declined by 13% over the period to A$28.6m. A full operational review is ongoing. Northstar Gaming saw GGR rise 61% to C$4m while turnover nearly doubled Q4 revenue to C$112m QoQ. Full-year GGR came in at C$7.3m. Share watchChurchill Downs was off the races this week. At the post: Ahead of the latest running of the Kentucky Derby next Saturday, May 6, Churchill Downs shares were propelled by a 13%+ surge in the past week off the back of a strong earnings statement. But it was the booming historical horseracing unit that lay behind the 53% revenue rise. 🐴 Churchill Downs leaps on its earnings news Analyst takesRejuvenation: Interest in digital gambling has been “globally rejuvenated” with European operators’ Q1 margins on the rise thanks to continued engagement post-World Cup and retail outlets performing strongly, says Jefferies analysts.
Startup focus – BettorTakesMC7: The Detroit-based consumer-facing betting tools company was founded in 2021 by CEO Steve Rubenfaer along with six others including Gil Varon, a startup veteran. The tools help consumers better understand their own gambling habits. Funding backgrounder: The company is bootstrapped. Losing my edge: Rubenfaer notes that currently every bettor is effectively using the same data and following the same trends. “Because of this, it is very difficult to have an edge,” he says, noting that “97% of bettors lose money”.
Ahead of the game: The initial goal, says Rubenfaer, is revenues “in the next couple of years” of between $500k-$1m. We don't have a preferred exit strategy,” he adds.
Growth company newsSports betting and iGaming developer the Unit will become the front-end development partner for sports betting risk-management supplier 10star. The Unit will feature as a startup focus in next Monday’s Cheat Sheet. Kwiff has extended its partnership with Betmakers to include the provider’s Price Manager system to power Kwiff’s proprietary trading technology and risk systems. ** SPONSOR’S MESSAGE ** Venture capital firm Yolo Investments manages in excess of €600m in capital across 80 exciting fintech, gaming and blockchain companies. The Yolo Investments' Gaming fund, regulated by the Guernsey Financial Services Commission, has taken positions in fast-growth suppliers and operators, including Dabble and Enteractive. Yolo Investments (yolo.io) wants to hear from readers of this newsletter. Get in touch with your pitch, or for a chat about innovative products which can plug into our investment ecosystem. Career pathsSuperbet has appointed Jimmy Maymann as its new deputy chairman following the group’s recent appointment of Hans-Holger Albrecht as chairman. The UK Tote has appointed Jon Knapman as CCO for its international B2B and Dave Hammond as CCO for the UK market. Sportradar has appointed Gerard Griffin as its news CFO, He was previously CFO of Zynga. The group has also opened an office in Mumbai and appointed Prasun Bhadani as GM of its India operations. Tim de Borle has joined Casumo as its new COO from Belgian sportsbook and casino Napoleon, where he was CEO. NewslinesLottomatica is set to float on Wednesday with a market cap of €2.3bn. NeoGames’ aggregation platform Pariplay and potential MGM M&A target Push Gaming have been granted B2B licenses by Swedish gambling regulator Spelinspektionen. What we’re readingWhatever it takes: Steve Cohen spends big on casino lobbyists. Rivalry’s recent results get the thumbs up. An +More Media publication. For sponsorship inquiries email scott@andmore.media. Earnings+More is free today. But if you enjoyed this post, you can tell Earnings+More that their writing is valuable by pledging a future subscription. You won't be charged unless they enable payments. |
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UK sector gets regulatory ‘clarity’
Friday, April 28, 2023
UK gambling policy reaction, Flutter approval, PointsBet sales chat, Kambi share price action, sector watch – tokens +More
Asia gains the driver for Evolution
Thursday, April 27, 2023
Breaking news: UK White Paper, Evolution's mixed message, Churchill Downs earnings, Rivalry new cash +More
Kindred on the block
Wednesday, April 26, 2023
Kindred strategic review, Bet365's Denver plans, Boyd's Locals love, Kambi bounces, Wagr bought by Yahoo +More
Promo addiction and GGR fiction
Tuesday, April 25, 2023
Debut Massachusetts data suggests DraftKings bought market share, a habit practiced widely in in Pennsylvania and Michigan +More
MGM and Push keep schtum on rumor
Monday, April 24, 2023
MGM and Push quiet on €150m deal, Churchill Downs and Evolution in the week ahead, analyst takes, startup focus – Data Skrive +More
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