Earnings+More - Feb 25: Weekend Edition no.35
Feb 25: Weekend Edition no.35Churchill Downs Q4 call, Bally analyst reaction, PointsBet investor call, REIT Q4 review, Playtike Q4, sector watch - payments +MoreGood morning. Social media has been full of messages in the last few days from companies and individuals in the gaming sector expressing solidarity with colleagues and friends in Ukraine. It reminds us that global gaming is a hugely interconnected global sector, a factor often overlooked in recent years with the rise of sports betting in the US. Needless to say, we hope everyone stays safe. Made it to the free west, on a chartered flight. Churchill Downs Q4 earnings callEnd of the affair: Having said the company had “high hopes” when PASPA was overturned, CEO Bill Carstanjen suggested the effectively irrational actions of competitors had forced a rethink.
Exit stage left: Unable to see a path to “acceptable margins for several years,” the company has opted to exit the sports-betting and igaming business within the next six months.
An online timeline:
Baby/bathwater interface: Carstanjen said Churchill Downs will continue with its retail sports-betting business “where we are profitable” and will otherwise seek to monetize its market access, saying the company “constantly receives” expressions of interest. CDI also remains committed to the horse-racing betting business.
What happens next: Asked whether Churchill Downs might do something more, in terms of partnerships, that might “unlock value in some other way”, Carstanjen said it was a “logical and obvious one”.
History-maker: Carstanjen said the company would be focusing on “what we see as working” and, as per this week’s $2.5bn Peninsula Pacific Entertainment deal, that is clearly in the direction of land-based gaming and historical racing machines in particular. Carstanjen said the deal added geographic diversification and scale. Nice timing: Analysts at Jefferies applauded the coincidence of the timing of the move out of OSB and igaming and the furtherance of HRM activity. “Trading the risks and timing of P2E for OSB/iGaming should be taken positively, particularly given the evident immediate accretion of P2E,” they suggested.
Popbitch noted this week that last year’s winner Medina Spirit was officially stripped of the title after the results of the post-race drug tests were confirmed. After pointing out that trainer Bob Baffert’s excuses were, well, horseshit, they point out that if American racing is finding it difficult to win headlines and attention, then a full-on Tour de France-style doping scandal “would certainly change that”. ** Sponsor’s message: Venture capital firm Yolo Investments is home to €350m of equity in more than 50 of the most exciting companies across fintech, gaming and blockchain. It continues to build one of gaming’s most dynamic portfolios as it eyes up seed and A-stage opportunities across the sector. Its dedicated 28-company, €135m AUM gaming fund already houses holdings in fast-growing suppliers and operators, including Kalamba Games, SimWin and ThriveFantasy. Yolo Investments is also on the lookout for LPs as it looks to scale new concepts, including its high-roller live casino brand, Bombay Club. As a proud sponsor of Earnings+More from Wagers.com, Yolo Investments wants to hear from readers of this newsletter. Get in touch with your pitch, or for a chat. Bally’s analyst reactionThe hard yards: Wells Fargo said yesterday that Bally was facing a “tough road ahead” for its North American interactive ambitions after its lower-than-expected fourth-quarter results. They noted, though, that the Bally Bet 2.0 approach was “prudent/thoughtful”. Addressing the takeover bid from Standard General, analysts at Truist say they remain keen on further gains. Analyst at Truist: “While the $38 takeout price is only +5% higher than current levels, we maintain our Buy rating seeing the potential for upside and significant long-term value.” PointsBet investor callTime is on our side: The key message from CEO Sam Swanell was that PointsBet would “be on the start line” when new states launch in North America and not playing catch up as it has done in many of the states where it is currently live.
At the gate: Swanell noted PointsBet would be “on the start line” in Ontario, Ohio and Maryland and this was important in terms of share of wallet. “Before we’ve always been a share-of-wallet bookie. Every client we’ve obtained we had to win it off MGM or FanDuel, here’s an opportunity to win clients first onto our platform.” Fade to grey: Swannell said Bet365 and bwin were the two biggest brands in the province and Canada generally but there was a lack of clarity as to which operators will get licensed in the province.
For more on Entain and its newly-acquired Sports Interaction brand’s position there, you can read Jake Pollard’s recent report here. Playtech analyst takeDefinitely maybe: Peel Hunt neatly summarizes the uncertainties around the future of the company. “A bid for Playtech may emerge from the TTB investor group, which may include CEO Mor Weizer. Playtech’s interest in Caliente may crystallize into shares in US-listed SPAC. Offers may emerge for parts of the group from different parties. The number of ‘what-ifs’ is daunting.” Related news: Spurned on its Playtech bid, Aristocrat has said it plans to enter real-money online gaming by establishing a third operating business alongside its slots and social-gaming arms. REIT Q4 review
Rock of ages: The company said it had made “great strides” towards having an investment-grade balance sheet. As noted yesterday, VICI completed the acquisition of the Venetian real estate. Analysts at CBRE called VICI a “rock of comfort in uncertain times” and suggested VICI was a “great” inflation hedge. Though VICI missed out on the recent Wynn Resorts/Encore Boston Harbor real estate deal, CBRE said the news validated VICI’s strategy.
MGM Growth Properties: VICI is set to complete the $17.2bn acquisition of MGP in H1. Truist noted that MGP (which reported on Feb 10) achieved revenues of $199m. The company said it would continue looking at further M&A in the gaming space. Jefferies noted the investment-grade rating would also lower the cost of capital.
Primary benefit: Jefferies also likes the prospects for GLP. “Ultimately, our thesis is proving out on long-term stable rent generation, coupled with growth through transaction activity. As the overall valuation level for Gaming REITs continues to rise, we expect GLPI to be a primary beneficiary.” Playtika Q4
Winter sales: The surprise results announcement came with the news that the board was evaluating the company’s “potential strategic alternatives to maximize value for stockholders” including a possible sale. As Macquarie analysts noted, this comes against the backdrop of large-scale M&A in the gaming space. Recent deals:
Playstudios: Also reporting yesterday, the free-to-play games provider said Q421 revenues rose 12.4% to $71.9m while adj. EBITDA rose to $12m. CEO Andrew Pascal said that with the focus on the “increasing complexity and costs of acquiring consumers,” it meant the focus on holding on to existing audiences “played to our strengths”.
Sector watch - paymentsDeal spree: Paysafe has signed a slew of partnerships with US operators in recent weeks: Hard Rock online casino in New Jersey is the latest, it joins Bally Casino in NJ and Bally Bet in Arizona. It will likely go live with Bally in New York and other states when Bally Bet 2.0 goes live in H1. Paysafe also signed with BetWildwood, the sportsbook offering from the Wildwood Casino in Colorado. Cryptic partnership: On the crypto front, the UK’s FCA told Paysafe of its concerns over its recent partnership with crypto exchange Binance. In June the FCA prevented Binance from being able to access the UK retail payment networks via Faster Payment Services and Barclays and Santander barred their customers from sending money to the exchange. Binance’s partnership with Paysafe reopened Sterling deposits and Euro transfers in January.
Every patent has its day: As reported by WE+M earlier this week, gaming machine-to-fintech provider Everi has filed a legal action challenging the validity of a patent owned by cashless payment provider Sightline Payments. This follows Sightline previously suing Everi for patent infringement. The dispute revolves around the patent linked to the technology used to move money electronically in and out of casinos. Regulatory roundupKentucky Sen. David Yates has introduced an online sports-betting and real-money poker bill. However, as with previous legislative efforts it faces long odds to pass into law. A Missouri House committee is scheduled to discuss and potentially vote on a statewide OSB proposal on Feb. 28, possibly clearing the first legislative hurdle in the multi-year effort to legalize online wagering. The Ohio Casino Control Commission announced a fourth batch of sports-betting regulations on Wednesday including rules on supplier and employee licensing. South Dakota lawmakers will discuss a ballot measure to allow online sports-betting today, Friday. PartnershipsThe Buffalo Sabres have named FanDuel as an official sports-betting partner in a Wednesday press release. Caesars and the Cleveland Cavaliers announced a deal that will bring a retail sportsbook to the team's home arena, a high-profile in-person compliment to the anticipated 2022 statewide mobile-betting launch. NewslinesHail Mary: BetRivers has been granted “potential approval” by the Maryland Lottery and Gaming Control Commission (MLGCA) for a retail sports-betting license. Both BetRivers and partner Bingo World would need final approval from the MLGCA for a BetRivers-powered retail sportsbook to open in Maryland. Admirable: Novomatic’s Greentube acquired Italian sports-betting and online casino operator Admiral Sport for an undisclosed amount. Admiral Sport operates more than 100 sports betting venues in Italy. What we’re readingJohn Authers: Markets are saying Putin will get what he wants. The 10 most annoying sportsbook tweets. On socialDon’t look at social media today. Calendar
Contact us
If you liked this post from Wagers.com Earnings+More, why not share it? |
Older messages
Feb 24: Bally waits to make its play
Thursday, February 24, 2022
Bally Corporation Q4, Better Collective Q4, Churchill Downs Q4, earnings in brief +More
Feb 23: Caesars: Digital Q1 ‘will be ugly’
Wednesday, February 23, 2022
Caesars Entertainment Q4, Catena Media Q4, Churchill Downs P2E acquisition, DraftKings analyst downgrade, earnings in brief, Playtech takeover news +More
Feb 17: New Jersey defies the odds
Thursday, February 17, 2022
New Jersey, Michigan Jan22, Tabcorp H1, Aspire G4, Wynn analyst update, Sportico fan engagement seminar, earnings in brief +More
Feb 16: Wynn’s 'absolute stunner'
Wednesday, February 16, 2022
Wynn Resorts Q4, Super Bowl betting, New York wk.5, AGA State of the Industry, GiG, earnings in brief +More
Feb 14: The billion-dollar ball game
Monday, February 14, 2022
Super Bowl betting, Gambling.com analyst update, 2021 OSB market shares, Startup focus - DoTrust, the shares week +More
You Might Also Like
🎙️ New Episode of The Dime Aaron Nosbich Reveals BRĒZ Marketing Secrets: A Beverage Exploding Toward $20 Million
Thursday, May 2, 2024
Listen here 🎙️ Aaron Nosbich Reveals BRĒZ Marketing Secrets: A Beverage Exploding Toward $20 Million BRĒZ immediate success is a testament to the power of a skilled team, a great product, and
Boost LTV by 108%
Thursday, May 2, 2024
Today's hack Targeting multiple market personas is like trying to catch crabs and fish by the same fishing net HubSpot could not define a target market persona for years, instead trying to please
Licious drops the meat wagon
Thursday, May 2, 2024
Also in today's edition: Ports in a (car) storm; Another RBI crackdown ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Get ready for a game-changer...
Thursday, May 2, 2024
With this, the path to financial freedom and living on your own terms has never been easier to achieve... View in browser ClickBank What we're about to share with you could turn your worldview
🔍 This Marketers #1 Sleep Hack
Thursday, May 2, 2024
May 01, 2024 | Read Online fb tw in email tw Update your email preferences or unsubscribe here © 2024 Marketing Examined 2223 Waterloo City Lane Austin, Texas 78741, United States of America beehiiv
🦅 This is why you're better than AI
Wednesday, May 1, 2024
𝕏 new swipe features / How to gain 100k followers / New insight into LinkedIn usage Growth Notes by Hypefury 🦅 Together With Road to Freedom Hey Reader, Yannick here. In this newsletter, you'
Poor New York celebs
Wednesday, May 1, 2024
Wed, May 1st, 2024
Bitcoin Plunges Below $57,000
Wednesday, May 1, 2024
Plus Senate Puts Stablecoin Reform on Hold
Shopify Dispatch Issue #449 - Avoid IP redirects, EU Accessibility Act
Wednesday, May 1, 2024
Issue #449 - May 1st, 2024 Avoid automatic redirection based on IP address Ilana Davis writes about how automatic IP redirection is bad for SEO. I wish Shopify would follow the rules about it instead
3 SHORT-FORM video ads blueprints
Wednesday, May 1, 2024
Today's Guide to the Marketing Jungle from Social Media Examiner... Presented by Social Media Marketing World logo Tomorrow is 🔑 World Password Day, Reader... It's time to 🔒 update and