entain/tabcorp share prices

[the galah]

Just looking at the above and the value of their shares have both halved since september 2023. Entain from 1158.50 to 648.20 and tabcorp from $1.10 to 46 cents yesterday.

I wonder if there are any punters out there with the overseas shares. Who knows.

Entain last year posted a loss of 936 million pounds,but hey they are going a bit better this year.Expecting just a small loss apparently. Uk and ireland wagering down,australia flat but expansion into good old brazil seeing significant increases.

Tabcorp not  much better with a loss of $1.367 billion(719 million pounds),although that seemed mostly because they revalued their existing assets.

Wagering was down 5% for them.

whats all that mean,well probably not much to the regular nz punter. 

Edited August 29 by the galah

[Chief Stipe]

23 minutes ago, the galah said:

ntain last year posted a loss of 936 million pounds,but hey they are going a bit better this year.Expecting just a small loss apparently. Uk and ireland wagering down,australia flat but expansion into good old brazil seeing significant increases.

Australia could be under regulatory pressure.  There are murumurings within the current Government about gambling restrictions.

24 minutes ago, the galah said:

Tabcorp not  much better with a loss of $1.367 billion(719 million pounds),although that seemed mostly because they revalued their existing assets.

Yes and have you seen what ENTAIN have valued their intangible assets at in NZ?

[the galah]

14 minutes ago, Chief Stipe said:

 

Yes and have you seen what ENTAIN have valued their intangible assets at in NZ?

no,has it changed much since they took it over? And what do you think about the entain value?

Edited August 29 by the galah

[Chief Stipe]

8 minutes ago, the galah said:

no,has it changed much since they took it over? And what do you think about the entain value?

There is a discussion on it elsewhere on BOAY.  In my opinion the intangibles are over-valued and are essentially the premium on the NZ lisence they have.  Essentially just a Government promise.

A number of financial analysts are saying that ENTAIN is a buy at the moment i.e. the share price has probably bottomed.  I would only throw at it what I would throw at buying a racehorse.  Assuming I had the spare cash anyway!

[Chief Stipe]

When I did my MBA we had an assignment.  The assignment was to assess a number of annual reports applying a number of tests and to predict which would fail and which would succeed.  We didn't know at the time that the names were false names for real companies that were traded on the NZX before and after the 87 crash.

There were about 6 tests - each with a different weighting.  I'll list three:

1. A complicated company structure with lots of inter-company lending (Du Val - 70 companies);
2. A high proportion of Assets as intangible assets such as Goodwill/licenses etc.  (ENTAIN NZ);
3. High number of executive share rights with rights to convert to cash and/or more shares;
4. .....

 

[the galah]

on a different tangent i see Tab nz pay entain a marketing rebate of $25 million if entain spend over $50 million on marketing in the first 3 years.things like bonus bets are marketing. Is that not just a way of saying they got more money up front from entain,but in reality they give that part back spread over the following 25 years. 

I see when entain took over they got about $850,000 in jackpots ,i assume from pools not struck and carried over. Wasn't the punter being shafted there.How come they were holding that much in the first place.

Edited August 29 by the galah

[Chief Stipe]

7 minutes ago, the galah said:

on a different tangent i see Tab nz pay entain a marketing rebate of $25 million if entain spend over $50 million on marketing in the first 3 years.things like bonus bets are marketing. Is that not just a way of saying they got more money up front from entain,but in reality they give that part back spread over the following 25 years. 

Where did you see that?  One of my biggest gripes is Dean McKenzie did a smoke and mirrors trick with marketing.  Moved it off TABNZ's balance sheet and onto each of the codes.  

[the galah]

Just now, Chief Stipe said:

Where did you see that?  One of my biggest gripes is Dean McKenzie did a smoke and mirrors trick with marketing.  Moved it off TABNZ's balance sheet and onto each of the codes.  

Its in the 2023 annual tab report under marketing rebate.in notes to the financial statements.

[Chief Stipe]

15 minutes ago, the galah said:

Its in the 2023 annual tab report under marketing rebate.in notes to the financial statements.

Mmm.  Thanks for that.  That's a lot of dosh.  TABNZ have limited revenue earning options....pokies?  @curious is across that more than I am.

[Nowornever]

4 hours ago, Chief Stipe said:

There is a discussion on it elsewhere on BOAY.  In my opinion the intangibles are over-valued and are essentially the premium on the NZ lisence they have.  Essentially just a Government promise.

A number of financial analysts are saying that ENTAIN is a buy at the moment i.e. the share price has probably bottomed.  I would only throw at it what I would throw at buying a racehorse.  Assuming I had the spare cash anyway!

Mmm where can I short the stock!

[Brodie]

9 hours ago, Chief Stipe said:

Australia could be under regulatory pressure.  There are murumurings within the current Government about gambling restrictions.

Yes and have you seen what ENTAIN have valued their intangible assets at in NZ?

Chief, what are the murmurings about restrictions?

are they going to put more on or make them illegal to restrict?

[Brodie]

I would say that Entain are ripe for the pickings as a takeover target by another betting agency!

They do not appear on the face of it to be a successful business which is clearly showing in a lot of their decisions that they have been making!

There is no way on earth that Entain will be still solely owning the NZ TAB in 5 years!