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Welcome to the latest edition of ‘Bet On It’. The Fly covers news and activity in the sports betting and his iGaming space.
Sector news: Las Vegas Sands (LVS) Announces purchase of approximately $250 million of SCL common stock, expected to be completed in the first half of 2024
FanDuel’s parent company, Flutter Entertainment (PDYPY), is poised to list on the New York Stock Exchange, and analysts believe that despite this entry, the stock price of U.S. competitor DraftKings remains weak at home. We believe it is expected to remain resilient in the face of increased competition. Mr. Palumbo of this magazine wrote so. On Monday, Flutter plans to achieve dual listing on the New York Stock Exchange under the ticker (FLUT).
Sports Radar (S.R.A.D.) has announced additional strategic actions as part of its previously announced efforts to streamline its organizational structure. As part of the organizational changes, Chief Strategy Officer Ulrich Halms will be leaving the company to pursue other business interests, and CFO Gerard Griffin has informed the company that he is leaving for personal reasons. Carsten Kohl, CEO of Sportradar, said: “We are pleased to announce this new global organization and leadership structure, which will align our teams around strategic priorities, drive agile execution and position Sportradar for the future. “This will put us in a better position for growth.” “Centralizing key business functions will facilitate greater collaboration and faster decision-making, enabling greater operational efficiency and driving innovation across the business. will enable us to better serve our clients and partners and capture the important market opportunities before us. We are confident that we have the right leaders in place who are committed to executing on our strategic priorities. We are confident that as we head into 2023, we are on track to achieve our strong growth targets and are well positioned to maintain that momentum through 2024.” The new organizational structure is effective immediately. Consists of six business functions: Product Delivery and Operations globally combines and centralizes content, product development and engineering to seamlessly deliver best-in-class products and solutions to our clients and partners. This is led by former chief Warren Murphy. Head of Product and currently Chief Delivery and Operations Officer. Growth and Innovation combines growth, strategy, and innovation to drive a unified vision for identifying and exploiting market opportunities, thereby driving a unified vision for identifying and exploiting market opportunities, thereby leading to the leadership of the former Chief Content Officer and now Chief Growth and Innovation Officer. Led by our CEO Nick Maywald, we ensure a clearly defined growth strategy driven by continuous innovation. board member. Sportradar also expects 2023 sales to range from 870 million euros to 880 million euros, with year-over-year growth of 19% to 21%, and adjusted EBITDA of 162 million euros to 167 million euros. We reaffirmed our guidance to show year-on-year growth in the EUR million range. 29% to 33%, with adjusted EBITDA margins ranging from 18.4% to 19.2%. The company also reaffirmed its outlook for fiscal 2024 sales and adjusted EBITDA growth of at least 20%.
Samuel Adams (Sam) is DraftKings (DKNG) gives drinkers a fan prediction pool “ Groundhog Day Prediction Pool Presented by Samuel Adams Cold Snap.
On to: Barstool Sports is negotiating a wide-ranging sports betting deal with DraftKings, people familiar with the negotiations told Sportico’s Eben Novi-Williams. Barstool will not lend its name to sportsbooks or betting apps, and the deal will be a “more traditional marketing partnership,” with Barstool promoting DraftKings odds and earning money from customers who refer the sportsbook. says the report. Barstool is unable to complete betting transactions until after the Super Bowl due to a lockup as part of the recent separation. pen Entertainment (PENN) and sources added.
Moving stateside: Given its consistent outperformance in market share, one could argue that FanDuel is undervalued compared to DraftKings’ current valuation, Jefferies told investors in a research note. . Assuming a 20% premium for the company and applying historical valuation multiples to the international market, the total component price target suggests he is £210. Alternatively, if you use the same he 20% premium for DraftKings and exclude Flutter, in the US he is trading at 8x EV/EBITDA compared to his 13.5x in the past. Masu. When you compare this to a broader group of U.S.-listed, digital-focused, high-growth companies, there appears to be a significant valuation discount, Jefferies said. The company concluded that the move to a primary U.S. listing will be a positive catalyst in the short term.
NFL Playoffs: Canaccord pointed out that Week 18 of the NFL regular season, along with the playoffs and the Super Bowl, will take place in the first quarter. After a disappointing fourth quarter for sportsbooks, the NFL playoffs are off to a positive start for carriers. During Wild Card Weekend, the Texans, Packers, and Buccaneers all won outright games as underdogs. The Rams also covered the spread, with three of their six games falling below their total, resulting in a record $67 million in weekly gross gaming revenue (GGR) in New York, a 140% increase compared to the same week last year. was recorded. The divisional round was also favorable for sportsbooks, with the publicly supported Texans and Bills losing completely and failing to cover the spread. However, the company said this success was partially offset by the Lions qualifying for the NFC Championship Game for the first time since 1991.
current situation: BofA’s fourth-quarter estimates show FanDuel holding 43% share, DraftKings holding 36% share, and BetMGM holding (MGMThe online sports betting (OSB) market was at 6% and Penn at 5%. Penn introduced ESPN Bet mid-quarter and achieved a run-rate share of about 10% in November. However, this share decreased slightly to about 7% in December, the company said. In the iGaming sector, FanDuel’s share increased by 3 points QoQ to reach 26%, while DraftKings increased his share by 1 point to reach 27%.
Earnings summary: Las Vegas Sands announced its fourth quarter results on Wednesday, and the company noted improved conditions in Macau and Singapore. “We are very pleased with our financial and operating results for the quarter, reflecting the continued improvement in the operating environment in both Macau and Singapore. We continue to see growth opportunities in both Macau and Singapore. We are very passionate about this,” said Robert Goldstein, Chairman and Chief Executive Officer. “Macau continued to see continued recovery in all sectors during the quarter. We will make investments that enhance Macau’s business and leisure tourism attractiveness and support its development as a global center for business and leisure tourism.” With our decades-long commitment to 2020, we are driving a continued recovery in travel and tourism spending. “In Singapore, Marina Bay Sands once again achieved an excellent level of financial and operating performance. With our new suite of products and advanced service offerings, we continue to expand our airlift capabilities and continue to support the recovery in travel and tourism spending from China and the broader region. We are fortunate to be supporting our ongoing investment and capital expenditure programs, pursuing growth opportunities in new markets, and returning capital to our shareholders at both companies. We look forward to using our stock repurchase program to return excess capital to our shareholders in the future. Additionally, during the quarter, we We have entered into an agreement to purchase shares for approximately $250 million, which is expected to increase our ownership interest in Sands China upon completion of the agreement.” The company reported adjusted real estate EBITDA of $654 million, noting that its low rolling play holdings in Macau had a negative impact of $40 million on adjusted real estate EBITDA.
Wells Fargo lowered its price target on Las Vegas Sands from $65 to $64 and maintained an “overweight” rating on the stock. The company noted that Las Vegas Sands reported inline EBITDAR on a hold-adjusted basis, with favorable Singapore holds offsetting unfavorable Macau holds. Wells added that Macau’s EBITDA is back to 88% of 2019 with solid margins as Macau’s recovery continues to rebound from China macro.
Additional comments from analysts: Susquehanna raised the company’s price target on DraftKings from $42 to $49 and maintained a “positive” rating on the stock. The company raised its targets and estimates following its fourth quarter results. Price income reflects higher multiples from comp sets and estimates considered conservative.
Barclays analyst Brant Montour raised his price target on Boyd Gaming (BYD) from $66 to $67, supporting an equal weight rating on the stock. The analyst is prioritizing Las Vegas for gaming print in the fourth quarter, but says the setup is also a “net advantage” for digital and regional.
Berenberg raised his firm’s price target on Flutter Entertainment from £16,900 to £17,000 and reiterated his rating on the stock as a ‘buy’. Furthermore, the company has lowered its price target on Entain from 1,510GBp to 1,310GBp and maintains a Buy rating on the stock.
Listed companies participating in this space include: Accel Entertainment (ACEL), Bally’s (BALY), Boyd Gaming (BYD), Caesars (CZR), Churchill Downs (CHDN), DraftKings (DKNG), Flutter Entertainment (PDYPY), Gambling.com (GAMB), Gan Limited (GAN ) ), Genius Sports (GENI), Las Vegas Sands (LVS), MGM Resorts (MGM), Penn Entertainment (PENN), Rush Street Interactive (RSI), Super Group (SGHC), and Wynn Resorts (WYNN).
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