Leisure/Hotels

Online gaming backlash claims another victim

10 Aug 2006

Germany is the latest country to shut out a foreign online gaming group. It wants to shore up its own state monopoly. Bwin and its peers may have EU law on their side. But that might not be enough to beat governments, which have tax revenues at stake.

Partygaming stellar Q2 eclipsed by US fears

21 Jul 2006

The online gaming group says it is business as usual in its core US market despite the arrest this week of the boss of BetonSports. Investors can t afford to be so sanguine. Partygaming may be growing like topsy but that hardly matters if the business is illegal.

US government throws the book at BetonSports

18 Jul 2006

The UKlisted online gaming group faces demands for $4.5bn in back taxes, the closure of its US business and the extradition of directors. It s not clear why BetonSports has been singled out. But the US clearly has the industry in its sights.

Juventus shows (again) that football and finance don’t mix

17 Jul 2006

The football team may have triumphed on the field, but even before its legal problems it was an investment basket case. It would probably be better as a private company. But many investors won t want to sell at the bottom.

Insiders keep selling at Partygaming

6 Jul 2006

The list of excuses from the online gaming group portfolio diversification, tax bills, not wanting to move to Gibraltar lengthens. The shares are supposedly undervalued and certainly below where they were at the IPO. This can only widen Partygaming s discount.

Partygaming first birthday a subdued affair

25 Jun 2006

Investors certainly won't be celebrating. The online gaming giant's stock has fizzled since its IPO a year ago. That's not because of anything in the prospectus' 27page risk section, though more the result of a series of management blunders.

Partygaming’s 8% stake sale all in the timing

7 Jun 2006

The online poker giant s owners must sell now or wait until September when they'd risk going up against the IPO of rival Pokerstars. The timing looks smart for advisor DrKW. As Pokerstars bookrunner too, it will hope to get a clear runup for its newest client.

Partygaming founders slash stake sale by 40%

7 Jun 2006

The online poker giant may be cheap on fundamentals. But the reaction to its 8% share placing shows investors still have misgivings. To rebuild trust, Partygaming's founders have cut the sale to 5% and locked in their remaining stakes for the rest of the year.

UK gaming companies hit by Italian protectionism

16 May 2006

An Italian court has rejected an attempt by UK online gaming groups to overturn a ban on Italian access to their sites. This ban is in breach of EU law and is designed to shore up government revenues. If Prodi is a good European, he will scrap the ban.

Size matters in shareholder activism

3 Mar 2006

That s one conclusion to draw from recent highprofile shareholder activism at Wendy s, McDonald s, Time Warner and now Heinz. The record suggests that smaller corporate targets provide better returns for uppity investors.

Partygaming CEO folds early

28 Feb 2006

Richard Segal is to leave the poker giant less than a year after being given a £50m pay package to lead the IPO. The explanation that he doesn't want to live in Gibraltar doesn't sound convincing. It's hard to see this as a bullish signal for the group.

Sportingbet makes mockery of online gaming valuations

22 Feb 2006

The online betting and gaming group grew earnings by more than 60% in Q2. But you wouldn't know it from the share price. Regulatory uncertainty is part of it. But Sportingbet is a diversified play in a growth industry. It should trade like one.

Hilton right to reject £3.7bn Ladbrokes offer

2 Feb 2006

True, CVC s offer would have valued the gaming group on a similar juicy ebitda multiple to the buyout of Coral. But the board hasn't yet had a chance to put its case for Ladbrokes going it alone. That will come with the results at the end of the month.

Private equity reaps rewards from activist hedge funds

30 Jan 2006

As the $3.9bn takeover of Fairmont Hotels shows, when confronted by activist investors, companies turn to private equity as a safe haven. Far from presenting a competitive threat, hedge fund activism is actually benefiting buyout firms.

Chipotle IPO hints at return to exuberance

27 Jan 2006

The McDonald s fastfood Mexican restaurant chain s 100% gain is the best performance by a US company in the IPO market in five years. But it didn't do much for its parent, whose stock fell. This suggests the retail investor is back and barmy as ever.

Betfair struggles to overcome management jinx

5 Jan 2006

The online betting exchange may have revolutionised UK gambling, but it has a poor record at recruiting and retaining executive talent. That s because it tried to float too soon. Unless the latest management changes prove more successful, the best option may be a sale.

Hilton shares leave little room for upside

22 Dec 2005

The UK leisure group's shares surged on hopes its hotels will be sold at a high price, and that private equity will snap up the gaming side. The stock is now discounting not just one highpriced takeover but two. Any disappointment or delay could lead to a fall.

Partygaming pulls a cracker

8 Dec 2005

The poker giant is adding players fast and they re spending more. New products are racing ahead too. At this rate, the stock looks cheap. But a discount to rival Sportingbet is still warranted at least while the risk of mudslinging from the Empire Online lawsuit persists.

Spirit deal creates lots of winners

1 Dec 2005

Punch Taverns' £2.7bn purchase of the UK pub group should enhance earnings and generate returns above its cost of capital in year one. But the real winners are Spirit's private equity owners, who have made a sizeable return on their original investment.

Financing wheeze helps Tchenguiz pay most for pubs

27 Nov 2005

The property tycoon has paid brewers more for beer in return for them subordinating the supply contract to lenders. That's a cunning way of raising more cash. But it has limits. Brewers may not want the extra credit risk, and regulators might object too.