Gaming

Macau cashes in on cheap thrills and VIP perks

1 Aug 2017

The gambling hub is enjoying a flutter this year. VIP and ordinary gamers stayed at the tables in July, lifting monthly revenues to their highest level since January 2015. If China's economy cooperates, and planned capacity comes on line, the good times will roll on.

Nintendo shows mastery of multi-platform game

27 Jul 2017

The Japanese videogames giant beat forecasts, sending its shares higher. The new Switch console is a hit, while Nintendo is also getting the hang of mobile games and using characters like Super Mario offline. Now the only real drag is that the company hoards so much cash.

Hong Kong gaming IPO is not Razer sharp

13 Jul 2017

The U.S.-Singaporean firm, which makes gaming keyboards and mice, is eyeing a valuation of up to $5 bln. But Razer is loss-making and expanding into areas like laptops, mobile devices and its own virtual currency. The financial reality of these businesses is underwhelming.

Second player in Chinese gaming goes up a level

11 May 2017

Sales at NetEase are soaring and shares have almost doubled in a year. It also scored a real coup by bagging the Chinese rights to Minecraft. Yet the $37 bln group still looks cheap next to rivals Tencent and Activision – maybe because of its heavy reliance on a few hit titles.

Macau keeps gambling on gambling

5 May 2017

Gaming revenue in China's casino enclave have risen for nine straight months, and the three top players have gained $20 bln in value. But the sector still lacks a family-friendly hedge against political and economic risk. Resorts better hope their new luck holds.

Australia’s Tatts could wring more out of KKR team

19 Apr 2017

A buyout consortium has made a fresh attempt to gatecrash the betting group's takeover by rival Tabcorp. At $4.7 bln, this broadly matches Tabcorp in value. Hard cash is nice, but investors will forgo some potential upside. Tatts could open its books and push for a little extra.

Fantasy gaming IPO has real-life charms

6 Apr 2017

Netmarble wants a valuation of up to 65 times last year's earnings in a $2 bln-plus IPO. The South Korean maker of online role-playing games is growing fast, and profitability is improving vastly. So that figure is not as fantastical as it looks - provided the hits keep coming.

Tencent’s new high score enables M&A attack mode

22 Mar 2017

The Chinese web giant’s revenue surged 44 pct to $6 bln in the fourth quarter, powered by games and advertising. Fast-growing payments and cloud computing units also contributed. To sustain growth and keep rivals at bay, Tencent's acquisition machine will have to go up a level.

Macau’s hot streak depends on mainland momentum

2 Mar 2017

Gaming magnate Sheldon Adelson was right: Macau did hit bottom last year. Casino revenue in the gambling enclave keeps rising, up 18 pct last month to a two-year high. But everything hinges on China's economic health. If strains worsen, Macau's fortunes could change fast.

Tencent heads for high score in gaming M&A

29 Dec 2016

China's biggest tech company will look abroad for growth in 2017. It will probably follow its $9 bln purchase of mobile hit-maker Supercell with similar-sized deals. But these will barely move the needle. A bolder move would be to bid for U.S. heavyweight Activision Blizzard.

Nintendo’s ups and downs reflect puzzle for market

20 Dec 2016

The delivery on "Super Mario Run", a crucial step into mobile gaming, looks poor. Making a successful leap to this new platform is key for Nintendo. But the shares have gone on a round trip, suggesting investors are struggling to decode what they've seen so far.

Casinos offer post-Olympics pickup for Japan

16 Dec 2016

Japan has legalised casinos after many years of wrangling. The market could in time be worth more than $30 billion a year. The resulting construction boom and boost to tourism will help extend Prime Minister Shinzo Abe's economic programme past the 2020 Tokyo Olympics.

Crown Resorts rushes for Macau casino exit

15 Dec 2016

James Packer's Australian casino giant gave up plans to spin off its share in Macau-focused Melco Crown. Instead, it is selling half the stake to partner Lawrence Ho for $1.2 bln. Plan A would have been better but Crown Resorts needs to distance itself from Chinese gambling fast.

Counterbid for Aussie lotteries is a long shot

14 Dec 2016

A quartet including Morgan Stanley, KKR and Macquarie has gatecrashed Tabcorp's near-$5 bln takeover of rival Tatts. The new approach is fiddly and has a questionable valuation. Still, a canny target could use this to wring a bit more out of Tabcorp.

China cracks capital whip on Macau ATMs

9 Dec 2016

The government reportedly halved the cash tourists can withdraw using UnionPay cards in the gambling mecca. That hammered casino operator stocks and may derail the island's economic recovery. It also illustrates the utility of a debit card monopoly in stemming capital flight.

CEOs don’t deserve bonuses just for going shopping

1 Dec 2016

Activision's Bobby Kotick will receive an extra payout for doing a "transformative" deal. Investors have to benefit, but only for a limited time. Sensible M&A is part of what CEOs are already paid for. There's no need to reward them twice – or to encourage risky acquisitions.

Aussie gambling deal faces better odds as takeover

19 Oct 2016

Betting group Tabcorp is buying larger rival Tatts for almost $5 bln in stock and cash. The set-up makes more sense than last year's aborted merger, and the combined group would be better placed to take on foreign bookies. The real gamble is with antitrust regulators.

William Hill’s second fold raises the ante

18 Oct 2016

The $3.3 bln UK bookmaker called off a merger with Canada's Amaya after activist fund Parvus objected. That follows the decision to spurn a takeover bid from rivals 888 and Rank. With deal partners falling, revenue shrinking and no CEO, William Hill is playing a bad hand alone.

Crown highlights risks of courting Chinese VIPs

17 Oct 2016

Shares in Crown Resorts crashed after China detained some staff. Investors had cheered moves by Australia's top casino company to distance itself from Macau. But this episode shows Chinese gamblers, and official attitudes, are crucial to gambling groups across the region.

William Hill’s new card partner looks a better bet

10 Oct 2016

The UK bookmaker and Canada's Amaya, which owns PokerStars, are in talks to create a $5.5 bln company. A pending legal case at Amaya means William Hill needs to tread carefully. But with more online and abroad, Amaya looks more promising than recent suitors 888 and Rank.