KW 51/2019: (Almost) all traffic lights on green for real money casino stocks
The signals are positive, things continue to improve, especially for William Hill and GIG. Slight recovery for NetEnt and Unibet towards the end of the year (Image from Pixabay)
A turnaround was already evident in calendar week 50 – now it is here. On our watchlist, which we compile on a weekly basis, almost all listed companies in the gaming industry with their reputable online casinos gave investors course gifts. Although these were not particularly spectacular, they were pleasantly stable. Only Bet-at-Home and William Hill gave in observably.
Bet-at-Home cannot keep up
The German group behind the well-known online betting agency and casino Bet-at-Home has not been kicking properly for months. Two weeks ago, the share briefly shone with a price increase of 9%. The hope for even more profits was not fulfilled afterwards. After a zero round in the previous week, the share dropped noticeably by 2% in the last trading days.
Bet-at-Home is to be clearly noted that the required back tax payment has not yet been overcome internally and externally. The negligent bookkeeping at the Austrian subsidiary had an extremely violent impact and halved the consolidated profit. Since then, investors have been in the watchful eye.
William Hill takes a countermovement
British bookmaker William Hill had a run. After a gain of more than 11% in the previous week, the price collapsed by 4% in this trading week. There were no headlines justifying the correction. Rather, the large French bank Societé Général slightly increased its stake. It now holds just over 6% of the gaming company.
The price drop is most likely a countermovement. The recent loss does not have to mean that the stock will continue to crash in the next week. Rather, everything indicates that the double-digit price gain was too high. Investors took profits and brought their sheep to dry before the holidays.
The Gaming Innovation Group wins the week with good news
The Gaming Innovation Group is a hybrid in the gaming business. On the one hand, the Maltese company operates its own online casinos such as Rizk.com or Superlenny. On the other hand, it provides comprehensive technical solutions for other companies in the gaming industry. What is interesting about the title is that the share fluctuates very strongly despite the broad business model. We saw everything from a price gain of over 42% to a price loss of 12% this week. A range of 54% and sometimes torture for the nerves of the average investor. Over the course of the year, the paper purposefully moved down. Investors who bought shares in the Gaming Innovation Group in December 2018 have lost two thirds of their money as of today. In the short term, the tickle can still be worthwhile. This week, the Gaming Innovation Group gained almost 7% in value and is now at 0.84 euros.
The latest company news was a driver of the encouraging share price. On Monday, the company proudly announced that it had published a book for its partner Hard Rock International in Iowa / USA. What is special: It is suitable for mobile devices. It complements the existing range of stationary bets from the Gaming Innovation Group. The solution has been in use at Hard Rock International for a long time in New Jersey.
Chris Armes, company spokesman for the Gaming Innovation Group, is proud of the result: “The project went live smoothly after both the Gaming Innovation Group and Hard Rock put a lot of hard work into it. We look forward to entertaining our customers with a secure and exclusive multi-channel sports betting solution. ”
NetEnt: moving forward at a snail's pace
The Swedish game developer NetEnt has been struggling with business management for some time. So far, the company results have not really been convincing. So it is no wonder that paper does not make big leaps on the stock exchange. Over the past three months, company shares have declined 14%. In KW 51/2019, however, they increased by 3.4%.
The reason for the course increase was the presentation of their newest game: Wings of Riches. It is a slot that is designed in the style of an elven world. In addition to pretty and imaginative graphics, the game shines with free spins and multipliers. But the payout ratio is also impressive: It is 96.63%.
Bryan Upton, head of game development at NetEnt, on the latest litter: “Wings of Riches is entirely in the classic art style. Since we have chosen proven mechanisms and a nice design, we expect the game to meet solid demand worldwide. ”
Severe punishment for Unibet
In Australia, Kindred's subsidiary Unibet has violated applicable gambling advertising law. For example, the bookmaker is said to have run a “Advertise Friends” campaign, which included a one-time reward of $ 50. In addition, there were occasional bonuses for new customers who received $ 100 in game deposits with a $ 20 deposit. However, both advertising measures are strictly prohibited in Australia. Unibet has now been fined $ 25,000.