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PRTY Partygaming

193.40
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Partygaming LSE:PRTY London Ordinary Share GI000A0MV757 ORD 0.015P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 193.40 - 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Partygaming Share Discussion Threads

Showing 66276 to 66298 of 66500 messages
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DateSubjectAuthorDiscuss
10/2/2011
08:16
EU law must be adhered to, so if a company stays
within eu law they are not doing anything wrong,
well that is how it has been explained to me.

dyor

srpactive
10/2/2011
07:02
Germany is currently in the midst of discussions surrounding future of its gaming market. The current State Treaty on Gambling, which contains prohibitions on the offering of online gaming services to customers in Germany, came into effect at the start of 2008 and will expire at the end of 2011. But this is inconsistent with EU law.

There is currently an ongoing debate between the 16 German states as to whether they should open the market for regulations. Only Schleswig Holstein wants to regulate all forms of online gaming. Unfortunately the debate is currently focused on sports betting. If any regulation will exlude poker and online gaming the revenue stream of PRTY is at substantial risk.

There was an extraordinary meeting of the state secretaries on 20 January in Berlin on the future of the monopoly on Lotteries. The next meeting of state secretaries is on 24 February and on 10 March the minister presidents meet. Therefor further newsflow on potential German regulation can be expected towards the end of Q1 2011.

frauchi10
09/2/2011
21:00
Thanks Frauchi - so whats the time table for the Germany decision? Is there one?
jezza123
09/2/2011
18:31
Barclays said that a regulation passing sports betting only in Germany, coupled with taxation on UK revenues, is the current bear case on PRTY. Barclays estimates that PRTY would lose ca. 40% of German clean EBIDTA (20-25& of total EBITDA) in the short term. This would result in 2012E clean EBITDA of ca. EUR 64 Mio. At least this would bring regulatory certainty in PRTY's key market.

Over the past 3 years PRTY has traded on average 9.9 x 1 year forward EV/EBIDTA multiple and with regulatory clarity Barclays expect the stock to trade on 9-10x EV/EBITDA. This would lead to a potential share price of 137p or a 25% downside.

Possible German regulatory scenarios and impact on PRTY's profitability

Status quo - No change
Denmark style regulation - Short-term diclines, medium-term growth
France sytle regulation - ca. 20-25% clean EBIDTA decline
Sportsbetting only - ca. 35% clean EBIDTA decline

frauchi10
09/2/2011
17:09
Ah yes - I see what you mean now, BWIN apparently do operate illegally in Germany... ooops. Been too focused on PRTY.

But then given PRTY had no exposure to this change, I can't see why the reduction to the combined entity should be 25%.

jezza123
09/2/2011
16:58
Frauchi - I thought all forms on-line gambling was illegal in Germany? and have been since 2008?

can you post some info on this? how do you get this decrease of 25% figure?

jezza123
09/2/2011
13:24
It's all about regulatory environment in Europe. Most countries wants to get taxes on the wagered amount not on the gross profit which would be very bad for gaming companies (see France).

For PRTY especially Germany is very important. If Germany only regulates betting and outlaw Poker+Casino in April this would lead to a decrease in EBITDA around 25%. In this case Barclays and Exane see another decrease in the share price of 25-30%.

On the upside we have Italy and New Jersey but especially the impact of NJ is probably not even worth to mention it. At least we could see some buy pressure at the first few trading days of the new company as it will be back in the FTSE.

Let's hope that the European governments are not going to kill this stock completely!!!

It's a shame that these uncertainties are destroyed 40% of market value since the announcement of the merger.

frauchi10
08/2/2011
14:14
Ongame likely to be sold

The spokesman also emphasised that the companies were "not in a hurry" to offload the network, and would perhaps prefer to await US regulation in order realise the highest possible price and therefore maximise value for shareholders through the merger.

bleepy
07/2/2011
13:37
Feature: Chinese whispers

China has started to issue online gaming licences. But if you thought France was a nightmare...

The Chinese central government is drafting regulations that will permit licensed online gambling within its borders. That is the exciting news filtering out of Beijing.

Nearly 20 per cent of the world's population resides in China. It has about a billion more people living within its borders than in the whole of the United States. A lot of them like gambling.

bleepy
07/2/2011
13:07
thanks jezza.

In a world where most stocks are trading at 15 times earnings this company is trading at just 6 times earnings. At some point these shares have got to go up. 888 had good results today as well.

dealy
07/2/2011
12:41
For what it's worth - asked the secretary about the imminent Hunt stuff -

here is what he wrote back:

We need to wait and see what changes the current UK Government firms up on with regards to the Gaming Act. We may be required to obtain a UK licence going forward, but this should not require us to redomicile the Plc to the UK. We own subsidiaries that hold French and Italian online gaming licenses and these arrangements have had no impact on dictating where the Plc is registered. I should also point out that unlike some of our competitors who have relocated to Gibraltar and other offshore jurisdictions, the PartyGaming gambling business has never been run from the UK.

Robert Hoskin

Group Company Secretary

jezza123
07/2/2011
11:02
Dealy - yea thanks for that, I got an e-mail from the PRTY sec. who said
it was just a case of doubling the shares on issue when the merger happens,
but funny how the arb woulda worked anyway.

Agree with the other points you make too - question really is, assuming Hunt makes non UK dom. companies unable to advertise, basically you have to assume that all these companies will have to come back into the UK and therefore pay tax - so to an extent revenues will drop (particularly for those with high UK exposure) - PRTY won't be a big victim of that, obviously as it's more diversified. But nonetheless, revenues will fall but this is easily priced into current share price IMHO.

jezza123
06/2/2011
01:20
PS and FT wouldn't dream of shorting Party/Bwin,its got to be the yanks.
bleepy
05/2/2011
22:11
Hello srpactive
you maybe right on that point.

shayadfn
05/2/2011
21:03
Hello again dealy, nice to see you here.

I think the US casinos want online presence,
so get the US fund managers to short the life
out of prty. Then buy on the cheap, like they
have tried to do with bp.
Prty with the bwin tie up has been seen in the
same light as bp. with the russians, the
US do not like it, so they short it, pathetic.
But I suppose that is the US we have all become
used to. They will open the US mkts only to
US operators so close the big eu operators
first or buy them.

dyor

regards

active

srpactive
05/2/2011
15:02
The ratio has already been agreed so there is no point in trying to arbitrage the two components of the merger. It's a question now of evaluating what the merged business can generate in ebitda and what growth rate it will have. It's more or less a 50/50 merger. It has to be a case of 1+1=3.

What's amazing is that Paddy Power has a market cap of 1.4 billion euro and is reliant primarily on Uk and Ireland horse racing and football punters. That's as big a market cap as the combined Party/Bwin entity. Based on this Party's shares look very cheap. It's hard to a find a share that has underperformed the market over the last 12 months as badly as this one.

dealy
04/2/2011
18:40
Well had a look at BWIN vs PRTY share price over the last 6 months - (since the end of July announcement of the merger)

BWIN down -37.6% PRTY down - -39.22%
So the arb would be making you money.

the question really is, how will the new share price be calculated when the merger happens and the new company is formed (I note BWIN share holders will own more of the company)

Anyone?

jezza123
04/2/2011
14:22
Italy legalises cash poker and casino
bleepy
04/2/2011
10:00
Morning all - I am wondering if this might be a target for a merger arbitrage?
Short PRTY long BWIN ?

Any hedge fund managers out there?

jezza123
04/2/2011
07:35
I have not seen anything that points to a change in the business environment globally for gaming. Countries need the tax revenue and it's better to have regulated gambling than black market gambling.

Party and Bwin are mature businesses with strong balance sheets and excellent customer bases. There has been no new recent event that should cause investors to question the validity of their business model - imho

dealy
04/2/2011
00:49
its not just stricter reg's - could be ad bans too, like tobacco amd there are fears solely web based gamers such as PRTY, 888, SBT dont have a diversified source of income compared to LAD, Will Hill, etc plus no one really knows yet how much money, if any, there will be in some of the new regulated mkts as mkting and taxation costs will be higher as will be the risk of license removal/adaptions.
indomie
03/2/2011
18:12
If some of this drop is to do with Jeremy Hunts stricter regulation of oversees companies betting online , then how is it afecting prty if they have they have been with Gamcare for atleast 6 years?
stewartd7
03/2/2011
17:35
cheers Hubshank that ill be interesting like the look of prty just cant understand the amount shorting???
stewartd7
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