Gaming as an industry is continuing to grow, and despite macroeconomic headwinds, companies continue to perform well.
Gambling Insider selected 10 gambling companies by their market capitalization. Below is a quick overview of their current financial situation and outlook.
10. Française des Jeux (FDJ) – $5.97bn
French national lottery operator FDJ’s stock price has fallen, dropping from almost €39 to less than €32 because of Covid-19. The company has struggled to regain shareholders’ trust after being hit by several headwinds in mid-2021.
However, market conditions are generally unfavorable right now, FDJ is doing something right. Ultimately, the company continues to support good causes, its primary goal as France’s national lottery operator.
9. Wynn Resorts – $7.44bn
Wynn Resorts’ stock price has ebbed and flowed in 2022. At the time of writing, it sits at $64.02; a mild uptick when compared to last month.
However, this constitutes a considerable downturn when compared to the over $80 its stock price opened at this year. But many analysts seem to be optimistic. Nevertheless, this may change if fears of a recession become a reality, but for now, the company’s position is relatively secure.
8. Entain – $8.2bn
Entain is the first predominantly online operator in this list and one that has grown considerably in the past few years. But Entain’s stock is currently valued at just over £12, having fallen from nearly £17 at the start of 2022.
As land-based operators return, Entain’s online business has, consequently, suffered. A withdrawal from the Netherlands has also impacted Entain’s performance, as well as tighter affordability measures in the UK. But improved retail trading has helped the company continue to grow and outperform analysts’ expectations.
Currently, most pundits predict a healthy growth trajectory for Entain, and one it seems determined to meet.
7. DraftKings – $8.34bn
DraftKings is still very much a new kid on the block, but its youthful energy has helped the company carve out a commanding position in the US sports betting market.
Q2 saw the company generate $466m in revenue, but after deducting all costs, DraftKings reported a net loss of $217m. Nevertheless, shareholder confidence has not wavered. Following the publication of DraftKings’ second quarter results, its share price actually rose.
6. Caesars Entertainment – $9.67bn
Caesars, like many land-based operators, saw a surge in visitors after Covid restrictions were lifted. However, Caesars’ Q2 results triggered a short-lived stock bump, but on a year-to-date basis, the company’s share price has fallen from over $89 to less than $45.
Many analysts believe now is the time to buy Caesars’ stock.
5. MGM Resorts – $13.11bn
MGM Resorts’ operations in Las Vegas have helped offset a decrease in Macau revenue, resulting in an overall year-on-year increase of $1bn for Q2.
In March 2020, amid widespread lockdowns and closures, MGM Resorts’ share price plummeted to less than $10. However, at the time of writing, it is now worth more than $33.
4. Aristocrat – $15.2bn
As a manufacturer of gambling machines, Aristocrat was understandably hit hard by Covid-19, but like so many other companies, has executed a comeback. While Aristocrat’s share price has dropped since reaching a high of more than AU$48 late last year, it has largely returned to pre-pandemic levels.
3. Evolution Gaming – $16.6bn
Evolution’s evolution corresponds to the growth of online gaming more broadly, and in particular, live casino.
Nevertheless, Evolution’s stock is fairly unstable. On a long-term basis, the supplier’s share price has risen considerably, but since peaking last year, has been on a downward trajectory.
This trend looks set to continue, but it will at some point have to stabilize. However, when this will occur is hard to say and the current macroeconomic outlook does not favor a plateau anytime soon.
2. Flutter Entertainment – $20.9bn
At the time of writing, the company’s share price stands at nearly £104, and has, in recent months, reported sustained healthy growth. Flutter also completed the acquisition of Sisal last month, extending its dominance to Italy.
Consequently, the company is primed for future growth, with most analysts recommending investors “buy.”
1. Las Vegas Sands – $29.53bn
LVS stock has yet to return to pre-pandemic levels. Currently, the company’s share price is just over $38, a considerable decrease when compared to the almost $70 it was worth in February 2020. While LVS experienced a slight rebound in March of last year, the company’s share price has, by and large, been on a downward trajectory ever since.
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