A brutal 2 weeks saw 888, EVO, ENT, PTEC, LNW and 888 lose ground in the latest iGaming Stocks Update Issue 20 2023! (Image by Pabitra Kaity at Pixabay.com)
The iGaming industry continues to evolve due to fundamental changes in the market, regulation, and expansion into new countries… but the most influential change is from technological improvements.
The market continues to transform with the influx of artificial intelligence, data analytics, virtual reality, cybersecurity, and cloud computing.
Mobile/Cell phones are the newest advancement as these devices have transformed the gambling landscape, increasing accessibility and ease of betting. Mobile gaming on the move is now available to the masses.
It is also becoming increasingly affordable across the globe. As communications infrastructure expands in regions such as Latin America, India, and Africa, online gambling entertainment companies are quickly expanding into these regions. You only need to read the regular Livecasinocentral weekly casino company partnership news reports to see companies like Pragmatic Play exponentially expanding into these regions.
Computers in these areas are not standard, but smartphones and tablets are expanding, increasing the prospects of market expansion in these targeted regions. Therefore, it should be no surprise that online gaming companies are now concentrating on creating appealing mobile offerings. These businesses aim to make mobile gaming as enjoyable as desktop gaming, enabling players to play their games while on the go. As more companies focus on creating mobile games, seamless gaming and simple navigation on mobile devices will become a reality.
The trend of mobile gaming is undoubtedly one of the most practical since people tend to seek simplicity wherever it is possible in their lives. The iGaming market is ‘betting on’ the new mobile game formats that technological developments will bring about.
This bi-weekly iGaming Stocks Update Issue 20 2023 report will focus on Playtech, Entain, 888 Holdings, Evolution and Light & Wonder to examine their price movement over the last 2 weeks.
Disclaimer: If you plan to invest in iGaming stocks, please seek professional advice from a trading platform with expertise on the topic. The info on this page is not trading advice. Also, for the previous report so you can refer back to previous prices is available here – Issue 19 – iGaming Stocks Update.
Evolution (EVO) – NASDAQ Stockholm – SEK
Evolution has struggled since hitting a yearly high of 1,469 SEK last June. The company also posted below-expected earnings in July, accelerating their drop in share price. The stock is down 5% since the previous report and is currently trading at 1,107 SEK and has strong support at 1,071 SEK and strong resistance at 1,125 SEK.
- Current: 1,075 SEK
- 19 September: 1,190 SEK
- 14-Day Gain/Loss: -115 SEK (-0.39%)
- 2023 Market Open: 1,050.50 SEK
- Yearly Gain/Loss: +24.50 SEK
- Yearly (%) Movement: +2.33%
Entain PLC (ENT) – London Stock Exchange (LSE) – GBX [British Pence]
Last week, Entain released a statement that the company will likely miss Q3 earning expectations. The company expects the online revenue to decrease by a high single-digit percentage due to slower anticipated growth. The stock has lost 13% since the last report and hit a yearly low on September 28th of 896 GBX. While the stock has recovered slightly since then, the bears appear to have taken over and are pushing the price lower. The downward trend has forced the hand of brokerage companies to lower their ratings on the stock, compounding the bearish movement. ENT opened down today and is currently trading at 911.43 GBX.
- Current: 911.43 GBX
- 19 September: 1,109 GBX
- 14-Day Gain/Loss: -197.57 GBX (-17.82%)
- 2023 Market Open: 1,350.50 GBX
- Yearly Gain/Loss: -439.07 GBX
- Yearly (%) Movement: -32.53%
Playtech (PTEC.L) – London Stock Exchange (LSE) – GBX [British Pence]
Playtech’s fortunes continue to dwindle as the share price dropped to a new yearly low. After posting poor profit margins in H1, the stock has fallen considerably, signalling it may decline further. The stock opened down today and is trading at 418.97 GBX, just above a yearly low of 430.60 GBX. On the positive side, PTEC is in acquisition talks with SKS365 (Italy-based) for approximately £500-£600m. The purchase of SKS365 would expand PTEC’s foothold in Italy by an additional 600k online customers.
- Current: 418.97 GBX
- 19 September: 491.40 GBX
- 14-Day Gain/Loss: -72.43 GBX (-14.74%)
- 2023 Market Open: 536.00 GBX
- Yearly Gain/Loss: -117.03 GBX
- Yearly (%) Movement: -21.84%
Light & Wonder (LNW) – NASDAQ NYC – USD
Light & Wonder posted positive EPS Q2 earnings results in August (20% revenue growth), and the share price hit a yearly high of USD 79.06 in September. Since the annual high, the stock has started to come off and is currently trading at USD 68.88 and has been in a horizontal pattern for the last week. The company continues to expand in the U.S. state of Michigan by launching its Playzido platform. The platform will enable their operators to create and deliver player-focused content such as slots and electronic table games. Market analysts are still bullish on this stock as full-year earnings are expected to grow faster than the American market, and their balance sheet is solid. The only downside is that interest rates/payments could affect cash flow if interest rates increase.
- Current: 68.88 USD
- 19 September: 77.90 USD
- 14-Day Gain/Loss: -9.02 USD (-11.58%)
- 2023 Market Open: 58.12 USD
- Yearly Gain/Loss: +10.76 USD
- Yearly (%) Movement: +18.50%
888 Holdings (888.L) – London Stock Exchange (LSE) – GBX [British Pence]
After a stellar run-up at the start of June and a yearly high of 133.90 GBX on September 4th, 888 has started to come off. Last week, the company released a statement that they are likely to miss Q3 revenue expectations of up to 10% because of compliance changes in the technology market. The company also expects profit margins to be around 18%, a couple of percentage points lower than previously stated. 888 had an impressive H1 of 165% revenue growth, but taxes, compliance issues and safer gambling changes have affected the EPS. The stock trades at 94.21 GBX and looks poised to hit lower lows.
- Current: 94.21 GBX
- 19 September: 117.86 GBX
- 14-Day Gain/Loss: -23.65 GBX (-20.04%)
- 2023 Market Open: 88.05 GBX
- Yearly Gain/Loss: 6.16 GBX
- Yearly (%) Movement: +7.00%
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