Evolution AB is a Swedish B2B provider of live online casino games with a €22 billion market cap, trading on the Nasdaq in the US and in Europe. Despite trading at 17.8x forward earnings, the company's high-quality business model and growth justify a valuation of 20-25x earnings in our view. The company runs the business with near 70% EBITDA margins, has dominant market share, and strong revenue and EPS growth.
Evolution AB stock dropped -8.52% after Q2 2024 results. Revenue growth slowed, profitability decreased, but the company still remains a buy. Expansion plans in new markets, acquisitions, and shareholder focus make EVVTY stock a promising investment.
The casino industry has been in positive normalization as it attempts to recover to pre-pandemic levels for foot traffic and revenues. However, the digital sports betting and iGaming segment continue to expand as a benefactor of the pandemic lockdowns.
International Gaming Technology PLC NYSE: IGT provides worldwide electronic gambling, gaming, and lottery products and services. It's well known for providing most of the slot machines in Las Vegas in the pre-pandemic era.
Both GLPI and VICI generate an investment spread above their cost of capital. However, GLPI generates a wider spread (103 bps) than VICI (17 bps). Both REITs are priced within a range of fair value as measured by the difference between the forward AFFO yield and an unbiased measure of fair value. Given the wider investment spread, GLPI is the superior choice in the current economic environment.
GLPI signed a term sheet for a $1.585b investment volume and its purchase option adjustment. The transaction is subject to several conditions and hasn't been closed yet. Nevertheless, the fundamental conditions outlined within the term sheet are highly favourable to GLPI.
While the overall market continues to reach new highs, gaming stocks have largely lagged behind. This trend can be attributed to brutal competition prevalent within the gaming industry, with both major studios and independent developers fiercely fighting for market share and gamers' available playtime.
The gaming sector is will see a meteoric rise in valuation in the upcoming years. Even after a surge in gaming spending during the pandemic (and a consequent correction in 2022), the amount American consumers allocate to this continues to rise, reaching around $48 billion in fiscal year 2023.
The world of gaming has never been so full of opportunity and uncertainty. For an industry that's expected to grow to a market value of $312 billion by 2027, many of its biggest players are still divided over how this growth will manifest itself.
Gaming Realms PLC (AIM:GMR, OTCQX:PSDMF) has been named AIM Market Company of the Year in the Online Money Awards 2024. Mark Segal, chief executive of the game developer, commented: "Gaming Realms is honoured that the hard work of its whole team has been recognised through winning the AIM Market Company of the Year award.
Sega Sammy Holdings has achieved 23% annual sales growth over the past three years, and the current undervaluation does not reflect its true worth. The underrated Japanese gaming studios consistently release profitable titles year after year, with no clear competition among their large fan base due to how unique their IPs are. The free cash flow generation capabilities of Sammy and the Pachinko/Pachislot business are the right engine to power the growth of the Gaming business.
The ESPO ETF invests across companies well-positioned to benefit from the global popularity of video games. The fund has outperformed alternative video game ETFs through a positioning tilted toward large-cap leaders. We expect VanEck Video Gaming and eSports ETF to continue delivering positive returns.