Gameaccount Share Discussion Threads

[montynj] 07/4/2014 10:24

First forecasts are now available since the IPO with broker Davy forecasting £1.6m pretax in the current year to 31 December, almost tripling to £4.5m next year. Corresponding eps is 2.7p and 6.5p.

[wexboy] 07/4/2014 01:37

TrentEndBoy - ta...

nurdin - I can paste the link, but advfn said a family dies in Africa each time I do - a bit severe I know, but apparently that's their policy. Just Google my name, I'm sure you'll find something interesting... ;-)

[nurdin] 06/4/2014 19:07

Where is the article from?

[trentendboy] 06/4/2014 18:42

Not a particularly positive article but well researched.

The single client issue is a concern. They need to attract similar.

[wexboy] 06/4/2014 17:17

Company: GameAccount Network

Prior Post(s): None – New IPO (Nov-2013)

Ticker: GAME:LN

Price: GBP 140.5p

This recent IPO seems to have slipped under the radar for most people, and I suspect many don't realize it's really an Irish company (just look at the board). It's also another IPO for the Smurfit family – Escher Group Holdings (ESCH:LN) is another example – who reinvented themselves in the past few years & became venture capitalists. GameAccount Network primarily focuses on its B2B business, providing gaming software systems & online gaming content, plus it has a smaller B2C business (MoneyGaming.com). It's active in the UK & Europe, and has had surprising success in the US to date – for example, working with Betfair Group (BET:LN) & Trump Resorts last November to launch in New Jersey's new online gaming market.

When it comes to IPOs, I think it's more dangerous than usual to focus on EPS & earnings growth rates. Let's focus instead on revenue & operating profitability: The company reported 10 month net revenue (to end Oct-2013) of GBP 10.9 M in its admission document. Pinning down profitability's not so easy though – operating profit is 2.5 M, whereas operating free cash flow is 1.0 M (2.5 M if you ignore working capital changes). And management helpfully provides a 'Clean EBITDA' of 4.7 M. Now, I think we all know investors in the sector are perfectly happy to focus on (a high multiple of) EBITDA, but let's compromise here: If you dig a little, there's two major items we can add back to operating profit – 1.2 M of transaction bonuses & IPO costs, plus 0.2 M for legal & termination costs. That puts adjusted operating profit at 3.9 M, a hefty 36% margin – which I peg at a 3.25 P/S multiple (on a grossed up 13.0 M of net revenue).

Hark, I hear the outrage already..!? Yes I agree, investors would probably opt for (much) higher multiple, but look closer – 63% of GAME's net revenues come from a single client! I consider my valuation multiple a reasonable compromise between higher sector multiples & the risk of a devastating client loss... Plus it allows me to (fairly) comfortably apply a (positive) debt adjustment: Based on the company's 4.7 M of (annualized) adjusted operating profit (& zero debt), management could easily draw down 14.2 M of debt for expansion, acquisitions, etc. – as usual, I'll haircut this by 50%. We can also adjust for 2.7 M of cash on hand, plus a net 13.2 M raised by the company in the IPO:

(GBP 13.0 M Net Revenue * 3.25 P/S + 15.9 M Cash + 14.2 M Debt Adjustment * 50%) / 55 M Shares = GBP 118p

GameAccount Network's mildly over-valued at this point. But it's nicely profitable, and has plenty of cash on hand for expansion (and/or acquisitions). Presuming a steady/substantial reduction in customer concentration (the NJ gaming launch will help, though it's off to a slow start), we may reasonably anticipate accelerated growth in GAME's intrinsic value, based on healthy revenue/profit growth & expanding valuation multiples.

Price Target: GBP 118p

Upside/(Downside): (16)%

_

[trentendboy] 06/4/2014 09:28

But any revenue is dependent on future US gaming regulation. Otherwise this is a freebie really perhaps done for a small fee.

Still a good long term strategy and convincing enough for me to dabble

[trentendboy] 06/4/2014 09:28

But any revenue is dependent on future US gaming regulation. Otherwise this is a freebie really perhaps done for a small fee.

Still a good long term strategy and convincing enough for me to dabble

[rivaldo] 06/4/2014 07:54

The IPO price was 135p, so buyers now are paying almost the same as the institutions in the oversubscribed placing.

Here's an encouraging overview of this week's news from the Irish broker Davy - note that more news flow is expected soon:



"Announces deal with Osage Casinos
DAVY VIEW

This announcement is encouraging for two reasons. Firstly, it is the first casino deal announced with a client of Konami, the casino management system provider with which GameAccount announced a partnership in January. Secondly, it suggests that the early simulated gaming yields being achieved by clients of GameAccount Network are convincing other operators to sign up.

Details of the Osage deal
Osage Casinos is owned by the Osage Nation, and comprises seven casino properties in the state of Oklahoma. GameAccount Network formed a strategic partnership with Konami Gaming in January 2014 to provide a complete turnkey gaming solution to Konami's land-based casino customers seeking to move online. Osage Casinos will be the first internet gaming system connected to the Konami Casino Management System. It is expected that GameAccount Network and Osage Casinos will launch a simulated gaming website in the second half of 2014. It is our understanding that the deal would also cover real-money gaming were if ever to be regulated in the state of Oklahoma.

More deals to come?
Clearly Konami has a wider portfolio of casino customers that GameAccount will seek to do deals with. However, deals outside the Konami partnership are also possible and we would expect further announcements in the months ahead.

GameAccount will announce full-year results on April 28th."

[cottoner] 04/4/2014 23:44

TEB- Read a few posts up - probable expansion into Asia.

[trentendboy] 04/4/2014 23:22

This is a real US play". Regulated markets only, decent products and good partners.

Fall must relate to US anti online gaming regulation.

All these casino deals are just promo free stuff. The big money rolls in only after regulation of online casinos.

This look further away now though.

Italy is strong though.

Small free float hence the large rise recently.

What do they want the money for? Expansion plans?

[john09] 04/4/2014 16:01

Price isn't moving though

[iandippie] 04/4/2014 15:46

hxxp://calvinayre.com/2014/03/27/business/sheldon-adelson-money-gets-anti-gambling-bill-to-congress/

[trentendboy] 04/4/2014 11:48

Nice deal. Footprint in the US. More to sign up.

The elephant in the room is the anti-gaming legislation going through now. If that gets bumped we could see a nice rise.

[rivaldo] 04/4/2014 07:21

Cheers cordwainer. And excellent news this morning:



"Partnership with Osage Casinos to launch a Promotional Play Online Casino [in the U.S. market]

ISE: GAME LSE: GAME

London & Dublin | 4 April, 2014: GameAccount Network plc ("GameAccount Network" or the "Company"), a leading developer and supplier of enterprise-level B2B gaming software and online gaming content, announces a partnership with Osage Casinos to launch a promotional play online casino.

Osage Casinos is owned by the Osage Nation, and comprises 7 casino properties in the State of Oklahoma. GameAccount Network formed a strategic partnership with Konami Gaming, Inc., in January 2014 to provide a complete turnkey gaming solution to Konami's land-based casino customers seeking to move online. Osage Casinos will be the first internet gaming system connected to the Konami Synkros Casino Management System. It is expected that GameAccount Network and Osage Casinos will launch a simulated gaming website in the second half of 2014.

The Osage Online Casino will include Osage Casinos' land-based casino games accessible in a pure 'Promotional Play' format. The Online Casino is accessible to players around the world across multiple platforms: Desktop, Android phones and tablets, iPhones, iPads, and mobile formatted browser-based play.

Dermot Smurfit, CEO of GameAccount Network commented: "There is a significant opportunity within Oklahoma State and throughout the U.S. to grow the Osage Casino brand online. We are delighted to partner with Osage Casino who will be our first Konami customer. This partnership follows ou successful launch of the first ever simulated online casino in the U.S. in February 2014."

[cottoner] 03/4/2014 21:06

Slightly different take on Asia news posted previously.

GameAccount Potentially Entering Asian Market

GameAccount Network has been rumored to enter the Asian online gambling market for some time. They have officially announced that for the first time they will be at the G2E May 2014 Conference which is held in Macau. During the conference and expo they will speak about their future in the Asian online gambling market.

Daniel Lindsay, the Commercial Director for GameAccount Network spoke about their future appearance at the conference saying, "We have announced that we'll be making our first appear at the GSE Asia Conference & Expo after our successful showing that we had at ICE in February. During the ICE Conference we met a large amount of operators from a region in Asia, those operators were interested to learn more about our success story and it has led to a future in the Asia Online Gambling Market."

Mr. Lindsay continued on by saying, "We reached the interest of these operators after we reached a partnership with the Foxwoods Resort Casino, with their partnership we were able to launch the first Simulated Gaming Online Casino in the United State of America. Asian has a huge potential for simulated online gambling and we look forward to expanding our services into the market."

GameAccount Network is famous for taking well known land based games, using their software to develop those games into a desktop and mobile variant. This resulted in the company becoming well known and highly sought after amongst online casinos. They have continued to innovate their services and expand their company across the globe

[rivaldo] 03/4/2014 07:26

Now New York State are bringing in legislation to legalise online poker:



"New York State Senator Introduces Bill to Legalize Online Poker
By Dan Katz - Mar 31st, 2014

Count New York as a state that will not want the Graham/Chaffetz anti-online gaming bill to move forward in Washington, D.C. State Senator John J. Bonacic (R-Mt. Hope) introduced legislation on Friday that would legalize and regulate intrastate online poker in the Empire State.

The purpose of Senate Bill 6913, as worded in a memo attached to the bill, is "To authorize the New York State Gaming Commission to license certain entities to offer for play to the public certain variants of internet poker which require a significant degree of skill, specifically 'Omaha Hold'em' and 'Texas Hold'em.'

The memo goes further, justifying the measure by reading, in part, "Presently, numerous New York residents are participating in illegal, unregulated and unsafe gaming operations which offer games of chance over the Internet. This bill will allow the state to license operators that meet the high standards set by the state and offer limited games of poker which require a high level of skill."

It adds, "...not only this will help New York regulate an industry that is present operating without oversight in New York State, but also generate additional revenue from taxes and licenses fees associated with a licensed online poker system in New York State."

The bill is fairly straightforward as far as online poker legislation goes. It does appear that it would legalize only online poker and not other forms of gambling. It would authorize the New York State Gaming Commission to issue up to ten internet gaming licenses; these licenses would be good for ten years and would come with a fee of $10 million. Operators would be required to pay 15 percent of their interactive gaming gross revenues in taxes to the state. And, as one would expect, licensees would be required to have safeguards in place to prevent against things such as fraud, underage gambling, and problem gambling.

If passed, the legislation would take effect immediately and the Gaming Commission would have to have regulations in place within 180 days. Licenses would then have to be issued within 180 days of when the regulations are set.

Also included in the bill is a "bad actor" clause, which states that any online poker vendor who "knowingly and willfully accepted or made available wagers on interactive gaming (including poker) from persons located in the United States after December Thirty-First, Two Thousand Six, unless such wagers were affirmatively authorized by law of the United States or of each state in which persons making such wagers were located" is ineligible for a license. Basically, it rules out operators like PokerStars who continued to serve U.S. customers after the UIGEA was passed, unless they were doing so in a state that specifically allowed for it."

[northwards] 26/3/2014 12:12

888 had some decent numbers yesterday ...some read-across to GAME?

[rivaldo] 26/3/2014 08:49

News of GAME expanding into Asia - also note the "highly successful" show in February:



"GameAccount Network plc to debut at G2E Asia
25 March 2014



(PRESS RELEASE) -- GameAccount Network plc ("GameAccount Network" or the "Company), the internet gaming pioneer will be taking its success story to Asia when it makes its first appearance at May's G2E event in Macau. The Company will be using its' first appearance at the show to introduce its enterprise-level B2B gaming software and online gaming content to what is a key regional market.

Commercial Director Daniel Lindsay stated: "We are making our first appearance at G2E Asia after a highly successful showing at ICE in February where we met with a significant number of operators from the region who were interested to learn more about the GameAccount Network success story. They were particularly interested in our partnership with Foxwoods Resort Casino with whom we launched the first ever Simulated Gaming online casino experience in the United States. Asia offers massive potential and we look forward to extending the GameAccount Network footprint into this important market." "

[ciderboy] 25/3/2014 09:43

answer, on 176.

[moorsie2] 25/3/2014 09:22

When are 2013 results due out?

[trentendboy] 15/3/2014 20:53

Why did it ever spike up?

Italy is a very tough market

[northwards] 14/3/2014 09:53

market doesn't like these tie-ups it seems.

[nw99] 14/3/2014 07:10

GameAccount Network announces partnership with Net EntertainmentGameAccount Network strengthens its position in the Italian market

[northwards] 07/3/2014 15:45

I did the same today phodo