A Drop in Share Prices for Some Big Gambling Companies in Q1 of 2017

In iGaming by on June 13, 2017

Most of the iGaming sector has been good to its shareholders over the course of the first quarter of 2017. Fiscal figures for the quarter were released recently and they revealed an increase in combined share prices for 35 gaming companies in the list. These companies saw an overall increase of 3.60 per cent in their combined share prices between the 3rd of January 2017 and the 31st of March 2017. While this has been good news for many, a number of big names in online gaming reported a less than favourable beginning to the year.

William Hill Plc.

William Hill has long been one of the most trusted and recognised brands in the gambling marketplace. For a long time running, William Hill was the largest UK based gambling operator and represents around 25 per cent of the market in the country.

However, the company reported a series of unfortunate occurrences throughout the course of 2016. With the replacement of their CEO and two failed merger deals the company had a rough year that was reflected in their share values.

The company saw a 0.31 per cent drop in share prices over the course of the first fiscal quarter of 2017. On the 3rd of January 2017, share prices for William Hill were reported at GBP 291.70 p and on the 31st of March 2017, share prices were reported at GBP 290.80 p.

Paddy Power Betfair Plc.

Paddy Power Betfair Plc. is a British bookmaking business that was created by the merger of two of the country’s biggest bookies, Paddy Power Plc and Betfair Plc. The merger that was finalised on the 8th of September 2015 saw Paddy Power shareholder take control of 52 per cent of the business, and Betfair shareholder take the remaining 48 per cent. The company is listed on the London Stock Exchange.

Paddy Power Betfair Plc. saw their shares drop in value over the course of the first quarter of 2017. Share prices at the start of the year were GBP 8670.00 p, while at the end of the quarter they were reported at GBP 8600.00 p. This marked a 0.81 per cent drop.

Stride Gaming Plc.

Stride Gaming Plc. is an online gaming operator that offers bingo and social gaming to its customers. Headquartered in the UK, the company has offices in cities across Europe, Asia and Africa.

The company saw share prices drop by 1.11 per cent during the first quarter of this year. Share prices were reported at GBP 226.00 p at the start of the quarter and 223.50 at the end. The company was amongst 8 others that saw shares hit a 52- week low in the space of these three months. Share prices for the company had dropped as far as GBP 215.20 p.

Jackpotjoy Plc.

Jackpotjoy Plc. is one of the most popular online gaming providers in the UK. They offer online Instant Win and Bingo entertainment brands, with more than 100 games ranging from bingo to casino.

Share prices for the company saw a significant drop in the first quarter of the year. Q1 of 2017 opened with share prices for Jackpotjoy at GBP 610.00 p and closed with share prices at GBP 549.00 p. This marked a 10.00 per cent decline. Jackpotjoy also hit a 52- week low during the three month period when share prices fell as low as GBP 528.50 p.

Gaming Realms Plc.

Gaming Realms Plc. is a software provider that develops, publishes and licenses next- generation mobile gaming content. The company saw rapid growth in 2016, with year over year revenues inflated by 60 percent.

However, those numbers did not translate into share prices for the first quarter of 2017 for Gaming Realms. Share prices for the company were reported at GBP 15.25 p on the 3rd of January 2017 and GBP 12.63 p on the 31st of March 2017. While that represented a 17.18 per cent decline, the company also saw their share prices dip to GBP 10.92 p, a new 52- week low over the course of the quarter.

Tangelo Games Corp. 

Tangelo Games Corp. is a developer and operator of social casino games. The company was formed through the acquisition of Diwip and Akamon Entertainment Millennium. The company has one of the widest geographical diversity; they supply to more than 200 countries worldwide. The company is headquartered in Barcelona but listed on the Toronto Stock Exchange.

Tangelo Games reported a 25.00 per cent drop in share prices over the first quarter of 2017. Share prices at the start of the quarter were reported at CAD $ 0.06, which dropped to CAD $0.045 at the end. The company also managed to set a new 52- week low in terms of share prices over the fiscal quarter; this is when share prices were reported at a low of CAD $0.03.

Zeal Network SE 

The ZEAL Network SE is an online lotteries provider. The company is based in London, UK and has been trading as a European stock corporation since December of 2009.

The company suffered a bad quarter as it was forced to reduce its financial guidance for 2017. This was arranged as a player won approximately EUR €15 million in a secondary lottery held by the company.

As a result, share prices saw a 28.16 per drop by the end of the three- month period of Q1 2017.  Zeal Network share prices were listed at EUR € 36.89 at the start of the quarter and EUR € 26.50 at the end.

Kambi Group Plc.

Kambi Group Plc. is a B2B provider of sports betting services. They provide a software platform with front end user interface, odds compiling, customer intelligence and risk management. The compnay is listed on the Stockholm Stock Exchange.

Their share values did not fare too well in the first quarter of 2017. They saw a whopping 34.83 per cent decline over the course of the three months. This included a 4.09 per cent drop in February 2017. This was when the financial results for the final quarter of 2016 were released for the company. Kambi Groups share prices were at SEK 133.50 at the start of Q1 of 2017 and SEK 87.00 at the end.

NYX Gaming Group 

NYX Gaming Group is an online gaming company that offers a complete range of industry leading products and flexible gaming solutions to some of the largest lotteries, casinos and gaming operators across the globe. With over 200 unique customers, they have one of the broadest distribution bases in the industry.

Their shares did not perform too well over the first financial quarter of 2017. The share prices at the start of the quarter were reported at CAD $1.26 and CAD $1.13 at the end. This reflected a 10.32 per cent decline. NYX has also seen the value of their shares decimated over the course of last year. It fell by 60 per cent in value in 2016.

Betsson AB

Betsson AB is another Swedish company that offers a number of online gaming products, such as online casino, poker, bingo, sports betting and scratch cards to their customers through their several wholly owned Malta based subsidiaries.

The global gaming industry had been following Sweden’s plans to re- regulate gambling in the country. The long- awaited report regarding the matter was a major talking point during this quarter. The news had a positive impact on a share prices for a number of companies.

Unfortunately, Betsson saw a drop in share prices over the course of Q1 of 2017. They reported share prices of SEK 88.00 at the start of the quarter and SEK 78.00 at the end. This reflected an 11.36 per cent decline. Betsson too saw share values drop drastically over the course of 2016; this drop was in the area of 40 per cent.

Tatts Group Ltd.

Tatts Group Ltd. is Australia’s largest provider of wagering, lotteries, and gaming products and services. The company operates throughout most of Australia and all of New Zealand.

Tatts Group saw share prices fall by 1.99 per cent during the first quarter of 2017. Share prices were listed at CAD $4.52 at the start of the quarter and CAD $4.43 at the end.

Tabcorp Holding Ltd.

Tabcorp Holdings Limited is an Australian wagering, gaming and Keno operator. They are one of largest publicly listed gaming companies in the world.

The company saw share prices drop in the three months of Q1 of 2017. Share Prices were reported ay AUD $4.86 on the 3rd of January 2017 and AUD $4.75 on the last day of March 2017. This marked a 2.26 per cent drop in share prices over the course of the quarter.

International Game Technology Plc.

International Game Technology Plc. (IGT) is a multinational gaming company that produces slot machines and other gaming technology. Headquartered in London, UK, the company has offices in Rome, Providence and Las Vegas.

IGT saw share prices fall by 7.13 per cent over the course of the first quarter of 2017. They reported share prices of USD $25.52 at the start of the year and USD $23.70 at the end of the quarter.

Ainsworth Game Technology Ltd.

Ainsworth Game Technology Ltd. is an Australian gaming company that specialises in design, development, and manufacturing of gaming machines; as well as the supply of software and related equipment.

The company saw a 12.86 per cent decline in share prices over the course of the first quarter of 2017. Share prices for the company were reported at AUD $2.10 at the start of the quarter and reported at AUD $1.83 at the end.

GameAccount Network (GAN) Plc.

GameAccount Network Plc. (GAN) is a leading developer and supplier of B2B iGaming systems, online gaming content, and other managed services. Their global network of operators represents some of the largest commercial and tribal gaming enterprises in the world.

The company reported a large drop in share prices in the first quarter of 2017. On the 3rd of January, share prices were reported at GBP 36.00 p and on the 31st of March 2017, share prices were reported at GBP 30.25 p. This marked a 15.97 decline in share prices over the course of the three months.

Contagious Gaming Inc.

Contagious Gaming Inc. is a Canadian software developer. They focus on providing unique and engaging gaming solutions for lotteries and regulated gaming operators around the world.

The company saw a massive 22.22 per cent drop in share prices in the first quarter of 2017. Share prices were listed at CAD $0.045 at the start of the year and CAD $0.035 at the end of the quarter.

Some Companies saw Major Growth

Despite all these companies showing losses in share values, most gaming companies performed very well over the same three months. Scientific Games Corp., the American lottery supplier, saw a 65.96 per cent increase in share prices during Q1of 2017. A total of 22 other companies in that list also saw double digit increases in that period. Scientific Games shares also reached a new 52- week high during March 2017; 14 other companies reported the same success over the course of the quarter.