Aristocrat Leisure aims to raise around US$1bn (A$1.3bn) via a renounceable entitlement offer to partly fund its acquisition of Playtech plc for a total enterprise value of around A$5bn. Past deals undertaken by Aristocrat have generally done well and the stock has a good track record. In this note, we will talk about the deal dynamics and run the deal through our ECM framework.
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
In our initiation report on UK Gambling on 11 December 2017, we referenced likely volatility in share prices as a result of the uncertainty surrounding B2 staking levels. UK media, citing the Chancellor is in favour of a £2 stake on B2 (FOBT) machines, and that the Treasury is close to a deal with the Department of Culture, Media and Sport (DCMS) and is seeking tax neutrality.
The SNAI deal improves PTECs regulated profile where we estimate that over 70% of EBITDA will come from regulated markets by the end of FY19e. The deal is expected to complete in two steps by the end of 2018. We expect to see the enlarged group generate revenue of c. €1.9bn and EBITDA of c. €516m in FY19e.
PTEC announces the proposed acquisition of Snaitech S.p.A a leading gaming and betting operator in the Italian market for a consideration of €846m funded by existing cash and debt. The deal appears profit enhancing on first take at 6.2x EBITDA (c. 5.8x post €10m synergies), PTEC on c. 7x FY18 EBITDA. Two stage deal: initial acquisition (70.6%) expected to complete in the 3Q18 and final transaction (29.4%) to complete in the 4Q18.
New enlarged GVC is a business with substantial depth and breadth by product, channel and geography, with its own proprietary technology to boot. We estimate the new business will generate c. £3.5bn of revenue and c. £900m of EBITDA in FY19E. Our forecasts include guidance from management on staged synergies (£7m, £33m, £56m and £100m year four). We think this is a case of under-promise and over-deliver as management has a track record of integrating businesses (Sportingbet & Bwin.Party), ...
Management flagged M&A when presenting final results with a focus on regulated markets. Also flagged comfort with leverage of 1-2x Net debt/EBITDA. On our FY18E EBITDA forecast of €341m and with forecast net cash of €356m it implies taking on debt of up to c.€1bn. Adding in the liquid holding in Plus500 and LCL LN (£345m) of €390m would give PTEC up to c. €1.6bn of firepower for M&A. A debt funded deal in regulated gaming would increase earnings between 31% and 42%, demand a higher ra...
Group revenue c. 3% below our forecast at €807m, Gaming underperformed by 2% at €722m( casino -2%, services -8%, sport -3%), and Financial by -14% at €85m). EBITDA c. -4% below our forecast at €322m and EPS was -12% at 66.8c (WH 75.9c).
Greek Audit Centre claiming €186.8m owed, relating to Sportingbet plc in respect of years 2010 and 2011. This was prior to the acquisition by GVC in 2013. GVC believes the amount owed is exaggerated and intends to appeal. However, GVC are providing for this in the accounts and have agreed a payment scheme with the Greek tax Authorities whereby funds are paid and held on account on a monthly basis at €7.8m over 24 months.
GVC produced a record 4Q17 on the back of particularly strong sports betting results. Net Gaming Revenue (NGR) for FY17 was over €1bn, +18% YoY and +2.5% ahead of WH NGR forecast of €985m (pre EU-VAT) for FY17E. Furthermore, management expects EBITDA for FY17E will be at the top end of their expectations, WH €276m.
Sportsbook margins in October and November were healthy for bookmakers with no run of results favouring punters. We expect that December 2017 would have been another healthy month for bookmakers, and as a result we should expect to see strong sports margin generation for Q4. Furthermore, the results will look particularly good, YoY, compared to a 4Q16 where results favoured punters and bookmaker sports margins were lower as a result.
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