Gvc Share Discussion Threads

[coxsmn] 14/11/2020 17:11

Yes very profitable.

[tricia51] 14/11/2020 17:10

Name change.
GEC with 2bn in bank changed name to Marconi. Result Oblivion !!

[italianofacile] 14/11/2020 17:01

Think we are talking different margins.. But not withstanding same theme.. IGaming is a good bet

[coxsmn] 14/11/2020 16:52

Sports margins are only around 5%, much lower than iGaming.

In NJ BetMGM is currently in 3rd place for Sports and 1st place for iGaming by market share.

BetMGM now commands 18% market share of US states where they are live. Their target is 15-20% US market share.

In NJ competitors such as DraftKings had a headstart with their fantasy sports and continue to spend very heavily to buy customers. However, when these free give aways end then over time players are likely to end up migrating to their preferred Sports book.

[italianofacile] 14/11/2020 15:46

IGaming market US consensus is about half the size of sports betting by 2025, but given margins are likely to be around 30 v 20.then 40% of profits are going to come from iGaming...lot of focus on sports but gvc is primarily iGaming..perhaps that is their US focus too. NJ Penn and michigan..huge potential for igaming

[coxsmn] 14/11/2020 14:38

In October BetMGM took 23.6% NJ iGaming market share cementing their no1 position.

Below, from GVC presentation this week, slide 17.

BetMGM expecting 15-20% US market share.

Key Metrics:
18% current market share
17% online market share
23% NJ iGaming market share
15-20% online market share in most recent states.
>20 Live states expected by end of 2021.

[wilco69] 14/11/2020 14:16

Hopefully the share loss in sports is just a blip

DKNG's (shared license) revenue mkt share improves m/m to more normalized ~25%. In Oct, FanDuel-Pointsbet-Meadowlands reported leading 51% market share, down from Sept 63%/Aug 54% but above July 48%/June 48%, while DraftKings-FOX Bet-Resorts posted 25% vs. Sept just 11%/Aug 25%/July 28%/June 31%/May 38%. DKNG had disclosed a $15m low hold impact to its 3Q revenue, we believe primarily driven by Sept games going against them and odds boosts, so it is reassuring its market share meaningfully recovered. That said, FOX Bet may be bolstering the shared license's market share, as it likely benefitted from its MLB World Series and NFL coverage during the month. William Hill appears to have achieved (across licenses) ~11-12% share, similar with Sept and slightly above prior months ~10%, while BetMGM had 7% vs. Sept 9%/Aug 11%/ July 10%/Jan-June 3-7%.

[coxsmn] 14/11/2020 12:42

DraftKings lost $348M in just three months on sports customer acquisition. I wonder how long they can maintain this amount of cash burn.https://calvinayre.com/2020/11/13/business/draftkings-loses-348m-sports-betting-customer-acquisition/

[italianofacile] 14/11/2020 07:11

read..8% down

[italianofacile] 14/11/2020 07:09

26,332,687...BETMGM NGR in NJ...17.32% share..Casino Revenue only 8% same period last year...so bricks and mortar not impacting on igaming NGR..BetMGM record in igaming..

[coxsmn] 13/11/2020 21:09

October NJ numbers are out

handle: $803 million

hxxps://nj.gov/oag/ge/financialandstatisticalinfo.html

[luderitz] 12/11/2020 22:12

Thanks speeds.

[srpactive] 12/11/2020 21:31

I am more interested in US growth and dividends myself.

Cisco up 8% after hours so good for tech stocks.

[speedsgh] 12/11/2020 21:26

EGM on 9 Dec in Gibraltar (apparently there is less Covid there so it is safer and logistically easier for the company to hold the EGM there). Presumably name change will be effective immediately assuming the proposal is voted through.

[luderitz] 12/11/2020 21:00

When’s this name change due to start then.

[wilco69] 12/11/2020 18:18

I never knew that about Costa Del Sol, good trivia.

[the white house] 12/11/2020 17:58

The best name change in history and worth multi billions is when the Windy Coast (Costa del Viento) wanted to get some more tourists to visit. Costa Del Sol

[coxsmn] 12/11/2020 17:51

hxxps://www.yogonet.com/international/noticias/2020/11/12/55426-betmgms-built-the-foundation-of-the-long-term-leader-in-us-sports-betting-and-igaming

[fenners66] 12/11/2020 17:34

"Kart0
12 Nov '20 - 14:44 - 39987 of 39998

@fennerrs66 Microtel to Orange and backrub to Google spring to mind for a starter.."

I did say
"Can anyone think of a name change for a major company that achieved anything?"

and

"I have never been a fan of name changes - I do not know of one that gained anything at this stage of a companies evolution."

So since I never heard of backrub and may have never heard of microtel I guess they did not have a market cap of about £5.8bn at the time.

My point was just that major companies changing their names....
B/S

now the post above is saying that he is trying to distance himself from the past successful strategy !
When we read that unregulated markets are only 3% so clearly that move is already very much underway.

So its a cosmetic change attempt to rewrite the past and ditch the successful strategy.

Now there is a reason to question his ability. Problem is that name changes are often a giveaway , hide something , forget something - cancel the past ?

Oh and potentially take your eye off the ball.

[italianofacile] 12/11/2020 16:50

"This strong performance will add approximately £50 million to the Board’s expectations for Online EBITDA for 2021."

Must be more fundamental than margins (temporary) or stay at home gamblers to carry forward to 2021 with such implied certainty

[the white house] 12/11/2020 16:31

An admission that the 8am lockdown guidance knocked up overnight was an error, it misled to the downside

[wilco69] 12/11/2020 16:07

On their call Flutter talked up current trading in combination with Q3 as giving them the confidence to increase guidance. Half of GVC’s upgrade today came from sports margin which has been obvious from recent sports results. They also said that the guidance they gave last week for retail closures didn’t include any shift from retail to online so it was clear that they would do better than that.

[the white house] 12/11/2020 15:31

Flutters numbers were Q to end SeptTodays 30-40m is from Oct 8 (or Oct1) to date. This is a huge trading bonus that reads across all players as the last two weekends Gridiron have been monster for the bookies, now handily we know how good.Bizarre to be down on his huge outperformance over just 5 weeks

[wilco69] 12/11/2020 15:17

From Jefferies- An underwhelming CMD offers an attractive entry point, given current valuation and the US opportunity. The focus, as expected, was on: 1) Governance and responsible gaming (timely given pending UK regulatory activity); 2) US growth; and 3) Competitive advantage from GVC's proprietary tech platform. The heavily featured eSports opportunity may add a new area of uncertainty. The name change to Entain will allow some distancing from past GVC issues.

Main messages: We flag the 10 key CMD charts below. Key messages included:

Competitive advantage from proprietary technology and data-driven customer insight. The product argument contrasts with the DFS operators first mover advantage / marketing spend / aggressive sports margin position;
Strategy to facilitate double-digit core growth from further diversification of products (from sports, casino, poker) and new geographies;
Three regions were flagged as expansion opportunities, without specific plans: Africa, Latin America, and central Europe; eSports to be explored as rapidly growing opportunity (forecasted to be $1bn by 2024), with potential acquisitions to grow GVC's presence. A lack of eSports regulation and younger audience may raise concerns of future risk;
A focus solely on regulated markets, with GVC to exit all unregulated markets (c3% of NGR);
Strong balance sheet and deleveraging scope (dividend to return in FY21E?);
Possible interest in the William Hill online assets;
Re-emphasising a commitment to responsible gaming - with a £40m cost attached - looks timely, given the upcoming review of the 2005 UK Gambling Act, expected to focus on Online.