I’m full: DraftKings cautions on doubling up on deals
I’m full: DraftKings cautions on doubling up on dealsDraftKings earnings reaction, Churchill Downs’ Derby win, Penn’s investor worries, startup focus – Bettormetrics +More
Let's think of each other and hesitate. DraftKings opts for M&A pauseMergers and indigestion: DraftKings CEO Jason Robins poured cold water on the prospect of the company buying Rush Street Interactive, saying that one Jackpocket-sized acquisition is enough to digest at the moment. He said an “M&A spree” is not a sensible way of deploying capital.
Not buying it: Rush Street investors appeared to remain undeterred, sending the shares up over 4% on Friday and leaving them with a near-30% gain for the week. However, in after-hours trading the shares were down over 7%. 🔥 Rush hour: RSI shares on a tear Cash machine: New CFO Alan Ellingson said DraftKings was on track to deliver approximately $400m in free cash flow in 2024 as the company’s operating profits accelerated towards the half-a-billion mark. He said the company was “poised for a rapid increase” in adj. EBITDA after Q1 saw the company issue raised guidance once more.
Spending limits: Operationally, Robins noted customer acquisition costs declined by 40% in April as the company continued to enjoy operational efficiencies and “really healthy and efficient marketing.” Asked about a 700 ppt improvement in promo expense, Robins suggested it was driven by the lack of big new state launches.
Robins noted the timelines on the payback from newly launched states was also improving over time, with North Carolina expected to be EBITDA positive in the second half of this year. “We continue to get better and better at optimizing our state launch playbook,” he said.
Analyst reaction: Analysts almost universally greeted the Q1 earnings, which saw revenue rise 53% YoY to $1.18bn and adj. EBITDA up to $22m compared with a loss in Q1 2023.
Hitting the Jackpocket: Robins said he was excited about Jackpocket’s “really efficient funnel for acquiring on lottery and cross-selling into OSB and iGaming.”
Gap analysis: Asked about whether competitors would be able to close the gap on the market leaders in terms of tech abilities, Robins said scale in terms of database was key to maintaining leadership. “We have more data and more data points to model and to improve personalization,” he added.
Great question count: Six. Payout on the over 4.5. EveryMatrix delivers iGaming software, solutions, content and services for casino, sports betting, payments, and affiliate/agent management to 300+ global Tier-1 operators and newer brands. The platform is modular, scalable, and compliant, allowing operators to choose the optimal solution depending on their needs. EveryMatrix empowers clients to unleash bold ideas and deliver outstanding player experiences in regulated markets. +MoreGames Global is targeting a $2.13bn valuation for its IPO on the New York Stock Exchange, according to Reuters. The offering will consist of 8.5m shares from the existing shareholder with a further 6m being sold by the company, meaning it should raise between $232m and $275.5m. Reports suggest Sportrade has gained a license to operate in Iowa, its third state after New Jersey and Colorado. Gaming Laboratories International said it has finalized its acquisition of Trisigma, a global gaming tester. GLI said Trisigma would continue to operate as an independent entity. The week aheadSuper Group reports on Wednesday, with the market looking to see whether the company has come to a resolution with regard to the strategic review over the future of its presence in the US. Before that, on Tuesday Red Rock Resorts will report the first full quarter of operations of the new Durango Casino in the Las Vegas Locals market. Recall, following the latest data from Nevada, the team at CBRE noted the ramp at Durango “continued to fuel market wide growth.” This afternoon, Monday, the Earnings+More Capital Markets Forum takes place at the NYSE. We’ll see you there. Tomorrow, Tuesday, GeoComply’s Challenger Event takes place at Citi’s offices in Manhattan. Career pathsWhite Hat Gaming has named Justin Psaila as CFO. He joins from GiG, where he served as CFO for nine years. Prior to that he worked at Betsson for eight years. Churchill Downs’ Derby winnerDown to the wire: Saturday’s thrilling photo finish to the 150th Kentucky Derby won by Mystik Dan will add $26m-$28m in EBITDA over the 2023 version of the race, while wagering from all sources set a new record of $321m, up 11% YoY.
The whip hand: The team at JMP noted that historically the Derby was worth 25%-30% of full-year EBITDA, but since the company has diversified into HRM operations that is now closer to 10-15%. But they added that it “remains a critical driver of equity value.”
Analyst takes – PennPiling up the misery: In downgrading Penn to a Hold, the team at CBRE noted cumulative losses for ESPN Bet were now approaching $1bn, with investors having “no greater conviction” in the company’s chances of success than when the partnership was announced last August.
The path to glory: CBRE said Penn needed to follow through on its promise to achieve a deeper integration with ESPN itself, which it said was the “greatest opportunity.” The team noted ESPN Bet recorded 300k unique visitors who came directly through ESPN links and that the planned integration with ESPN’s No. 1 ranked fantasy sports app offered the prospect of hooking into 12m users later this year.
More takesEarnings QTD: The “primary focus” from a busy earnings week last week were Las Vegas results and “what lies ahead,” suggested the team at Jefferies, who pointed out Boyd Gaming and Caesars Entertainment both reported “surprisingly disappointing results.”
But, citing MGM Resorts’ inline earnings in comparable segments last week and the mood music from Red Rock, the team suggested it was their view the problems were more company specific.
At Partis we are more than advisors we’re gaming experts, driving tangible results, not just recommendations. We’re the gaming industry’s go-to implementation partner and leading specialist advisor to the gambling industry globally, delivering a broad range of consulting, M&A and managed services solutions to 400+ clients since 2013. We provide:
To learn more about Partis or to meet one of the team during the SBC North America conference, please contact us at https://partissolutions.com/contactus Startup focus – BettormetricsWho, what, where and when: The London-based next-generation big data analytics platform was launched by Robert Urwin, a former sports trader at Ladbrokes, and Roger Creyke, ex Betway, in December 2021. They are supported by gaming industry veteran and now commercial director Sabin Brooks. Funding backgrounder: The company secured a funding round from Velo Partners in December 2021 and completed a Series A funding round from Bettor Capital and Velo Partners in December 2023. The amounts raised were undisclosed. A better idea: Urwin says the Bettormetrics platform quickly identifies unprofitable trends and patterns in a sportsbook’s performance, reducing those inefficient price positions, which often result in margin leakage, and thereby maximizing GGR.
In the clouds: Urwin says the sportsbooks Bettormetrics is speaking to are starting to see the benefits of cloud-based analytics technology and are viewing it as a “vital part of their trading operations.”
Shine a light: The challenge from this point, Urwin says, is to “shine a wider spotlight” on the deficiencies trading desks encounter. “We need to put a number on just how much these issues are costing sportsbooks.”
What will success look like? “It’s still early days in our quest to augment quant operations across the industry with world-class analytical services,” Urwin says. “Ultimately, it’s our goal that all reputable sportsbooks recognise the problem and adopt a service like ours.”
Growth company newsEQL Games has a new director of marketing in Taylor Bengtson, who joins from the New Hampshire Lottery where she was an account manager. Gamification provider Lucra Sports has announced a partnership with entertainment center operator Dave & Buster’s to enable P2B betting via an arcade game app. Calendar
Kambi Group is the leading provider of premium sports betting technology and services, empowering operators with all the tools required to deliver world-class sports betting and entertainment experiences. The Group’s services not only include its award-winning turnkey sportsbook but also an increasingly open platform and a range of standalone sports betting services from frontend specialists Shape Games, esports data and odds provider Abios, and AI-powered trading division Tzeract. Together, we are limitless. For more info, go to www.kambi.com An +More Media publication. For sponsorship inquiries email scott@andmore.media. |
Older messages
Penn slips on worsening ESPN Bet guidance
Friday, May 3, 2024
Penn's negative guidance, DraftKings' customary beat/raise, VICI NFI'd, Rush Street's share push +More ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Hornbuckle tips his hat to tuck-ins
Thursday, May 2, 2024
MGM numbers, RSI sale rumors, Bally's mixed bag, earnings in brief - VICI, Raketech +More ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Caesars catches a flat
Wednesday, May 1, 2024
Caesars kitchen sink quarter, Melco's Sri Lanka adventure, Lottomatica's position of Italian strength +More ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
The stragglers: a look at the losers in New Jersey
Tuesday, April 30, 2024
New Jersey analysis, Evolution's Asia factor, Q1 promo analysis +More ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Scoop: Tipico ‘set to sell’ its US platform
Monday, April 29, 2024
Tipico's US platform sale, Novig shuts in Colorado, GLP on deal flow, startup focus – SBC First Pitch +More ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
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