Tag: Revenue

  • Tottenham’s go kart track shows Scottish clubs the way to maximise revenue

    Tottenham’s go kart track shows Scottish clubs the way to maximise revenue

    Tottenham Hotspur announced a new deal to open a go-karting track inside their state-of-the-art stadium last week. The Premier League club joined forces with F1 to create apprenticeship and career opportunities for local youth while addressing diversity in the motorsport industry. In the bizarre announcement, there is a lesson for Scottish football. Whilst our game is authentic, we must maximise our product.

    The London club have enjoyed an impressive few years in terms of exposure but matters on the pitch have failed to keep up with the growth in a business sense. Daniel Levy, the club’s astute taskmaster, appeared to loosen his grip of the club by appointing Antonio Conte and Fabio Paratici as Sporting Director.

    Although, the rumour mill appears to suggest that The Lilywhites will again look for a new manager this summer. Spurs will endeavour to rectify this problem but they’ll continue to make strides with regards to their commercial wing.

    Callum McGregor of Celtic celebrates at the final whistle as Celtic beat Rangers 2-1 in the Viaplay League Cup Final at Hampden Park on February 26, 2023 (Photo by Mark Runnacles/Getty Images)

    What does this mean for Scottish Football? Not an awful lot. It’s another example of how the Premier League clubs are using ever resource available to them to maximise profit and drive the gulf between other teams. The Premier League is the most viewed league in the world and it’s popularity is largely merited. Although, per capita, Scottish football is the best supported.

    The Scottish game showed in the League Cup Final that it has a vibrant, colourful and exciting. But not only between Glasgow’s big two. This weekend’s game saw a number of interesting clashes at both ends of the table and in all divisions. Craig McGuffie scored a goal that’ll likely be touted for the FIFA Puskas Award, such was the quality from the Falkirk star.

    The issue that Scottish football has is visibility. The existing TV deal, 3pm black-out hamstrings and isolationism from clubs results in fans, who would pay to attend or watch games, being ignored. This leads them to the visible, wall-to-wall English Premier League. With games from Friday night through to Monday night then Champions League/Europa League, there is a lot of football at the top level ready to be consumed.

    There is an appetite for the Scottish game, the numbers do not lie. Celtic in particular is globally recognised as is their fierce rivalry, to a much lesser extent. Yet, inexplicably, bosses are contented to simply stand guard over the game rather than prompting new ways to make money out of it.

    Ange Postecoglou’s Celtic are in terrific form and the Australian’s team are being noticed for their hard work, tenacity and goals. Yet Celtic are a different proposition, they are bigger than most Premier League teams and have a European-sized operation behind the scenes, similar to Rangers. As the two clubs attempt to compete with England and other European clubs, they pull further away from the rest of the league.

    A policy of jealousy appears to have crept into the mantra of some clubs. They would rather seats were empty than be seen to take the money from Celtic (and indeed theRangers) fans.

    Thousands of Celtic fans would’ve gladly paid to get into St Mirren’s stadium yesterday yet the Paisley club opted against it. Instead asking their own fans for a donation rather than allowing football fans to support their team. A baffling decision that cost them around £50k yesterday and £200k per season.

    Livingston boss David Martindale made an interesting point. Following Brexit, English clubs have eyed the Scottish market with some interest. Rather than simply signing the brightest 16-year-olds, English teams should consider a strategic partnership with Scottish teams. By Martindale’s reckoning, this will improve Scottish teams and the game as a whole. It’s a novel idea but one that shouldn’t be off the table for clubs of Livingston’s ilk.

    Celtic have manoeuvred well in the transfer market to tap into relatively untried markets. This is something that has had a major impact on the club’s performances on the pitch and will further improve the club’s already sound financial health.

    Since the pandemic, fans have been more vocal in terms of what they want. Rightly so. The pandemic proved that there were different ways to work in every sphere of life so why should fans continue to be locked out of fixtures owing to the 3pm black-out. Revisiting an SPFL streaming service would tackle piracy and deliver an option for fans.

    (Photo by Ian MacNicol/Getty Images)

    Scottish clubs can moan about the chasm between Celtic and the rest but until they begin looking to maximise their revenue and fighting the status quo dictated by Sky, the game as a whole will not progress.

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    The post Tottenham’s go kart track shows Scottish clubs the way to maximise revenue appeared first on CaughtOffside.

  • PLC Reports 47% Revenue Increase in H1 2022

    PLC Reports 47% Revenue Increase in H1 2022

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    Premium Leisure Corp (PLC), an investment holding company that participates in gaming-related businesses, has posted its financial results for the first half of 2022. The results demonstrate a strong post-COVID recovery and show the company’s strengths.

    PLC Recorded Improved Revenues

    As reported by PLC, the company earned around $14.69 million (current conversion rates) for the period, which represents a YOY increase of 47%. For comparison, the company roughly earned about $10 million for the same period last year. PLC also reported consolidated revenues of $21 million for the period, up 18% from H1, 2021.

    The company attributed its improved results to the better economic landscape in 2022. According to a statement by a PLC spokesperson, the company’s operations during the first half of the year were strong despite the echoing effects of the COVID-19 pandemic.

    Both of PLC’s Gaming Brands Performed Well

    Taking a look at how PLC’s various gaming brands performed, we see that Premium Leisure and Amusement (PLAI) saw its revenue increase to $17 million. This is notably 20% more than what the brand earned during the first half of the previous year. According to PLC, PLAI’s GGR increased thanks to the waning pandemic and the eased up quarantine rules. This helped the company get its casino operations going and rake in better revenues.

    Meanwhile, Pacific Online Systems Corporation (POSC), PLC’s B2B gaming brand, saw revenues increase by a more modest 7% to $3.84 million. The company dropped its KENO operations in early 2022 and instead opted to focus on Lotto sales. This strategy turned out to be a winning one. In addition, POSC’s operating expenses declined by 22% to $2.6 million, which attests to the company’s robust cost efficiency measures.  

    Other Philippines-related News

    PLC’s results for the first half of the year are in line with the overall recovery tendency the Philippine market is experiencing. According to the PAGCOR, the country’s gaming authority, the gambling industry has been experiencing a strong recovery since the beginning of the year.

    In other news, the Philippine Court of Appeals recently decided to lift the freeze on Chinese junket funds. The authority announced the end of an earlier asset preservation order which came after $81 million were stolen from the Bangladesh central bank. Sadly, the Philippine government managed to return only a fraction of the money that was originally stolen during the cyberattack.

    On a separate note, in June, Universal Entertainment accused the PAGCOR of corruption amid the infamous Okada Manila incident.

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  • Intralot Posts H1 2022 Report, Revenue Reaches $204.8 Million

    Intralot Posts H1 2022 Report, Revenue Reaches $204.8 Million

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    Intralot has posted its H1 revenue report which states that the company’s revenue reached €204.8 million ($204.8 million), which is a 1.1% YoY increase. EBITDA also reached €55.1 million ($55.1 million), which is a 1.4% increase. 

    Lottery Games Remain the Group’s Largest Revenue Generator 

    According to the report, lottery games were responsible for 64.1% of the generated revenue, making them the highest contributor. Sports betting came in second with 15.7%, VLTs had an 11.2% share, technology contracts had 8.6% and racing’s share was 0.4%. 

    Even though Malta’s operations resulted in a 6.7% lower YoY revenue, Croatia, Australia, and Argentina all recorded higher revenue. US operations also recorded lower revenue, but the merchandise sale in H1 of 2022 was higher. 

    Total operating expenses in H1 of 2022 reached €49.4 million ($49.4 million), which is a €3.9 million ($3.9 million) increase compared to H1 of 2021. Moreover, the operating cash flow of the company was €41.4 million ($41.4 million) which is €9.9 million ($9.9 million) lower than the same period in 2021. 

    As of June 30, 2022, the company’s net debt stood at €508.7 million ($508.7 million). Compared to the 2021 end-year, it increased by €11.5 million ($11.5 million). The report notes that the increase in debt is a result of the adverse FX impact on the company’s USD-denominated debt. 

    Sokratis P. Kokkalis, the chairman and CEO of Intralot, shared a few thoughts on the report. He stated that the company’s strengthened financial profile can be seen in the report and added that Intralot will “pursue new opportunities” that will allow it to grow. 

    Intralot Is Looking To Build Up on the Success in FY2021 

    The 2021 fiscal year was quite successful for Intralot as the company reported a 20% YoY increase in revenue ($414 million). The operating cash flow of the company was $107.6 million which was a whopping 141.9% YoY increase.

    Back then, Kokkalis noted that one of the key milestones for the company was the Capital Structure optimization in August. That provided Intralot with a lot of opportunities in the US and worldwide for the upcoming years, especially in the lottery, sports betting, and monitoring sectors. 

    Most recently, Intralot announced amendments to the lock-up agreement that was reached in 2021. A new loan facility worth $175.6 million was agreed and it is set to optimize its balance sheet. 

    The company’s expansion mission resulted in a partnership with NeoGames, thanks to which iLottery and sports betting offers in Brazil will be boosted. The CEO of NeoGames, Moti Malul, stated that the operator will provide Minas Gerais online sports betting and lottery players with “an exceptional online gaming experience.”

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  • SkyCity Entertainment’s FY 2022 Revenue Dropped by 32.9%

    SkyCity Entertainment’s FY 2022 Revenue Dropped by 32.9%

    New Zealand casino operator SkyCity Entertainment Group released today its financial results for the fiscal year 2022 revealing the impact of the near three-month-long closure of its flagship Auckland property.

    Revenue Decrease Attributed to Property Closures

    For the 12 months ended June 30, 2022, SkyCity Entertainment Group generated NZ$639 million ($397 million) in revenue to register a 32.9% decline as compared to the previous 12 months. The biggest decline in revenue was at SkyCity Auckland, 32.3% to NZ$96.9 million ($60 million) which remained shut for 107 days during the pandemic.

    Revenues from the company’s other properties, SkyCity Hamilton and SkyCity Queenstown, declined by 23.5% and 16.9% to NZ$56.2 million ($35 million) and NZ$10.2 million ($6.3 million), respectively, while its Australian resort in Adelaide was the least impacted with a 6.3% decrease to AU$184.5 million ($128 million).

    Despite the decrease in revenue, SkyCity Entertainment stated that its international business was EBITDA positive in the second half of FY 2022 following the reopening of international borders, while its online casino gaming division accounted for a 28.8% increase in revenue and EBITDA growth of 41.7%.

    EBITDA for the twelve months came out at NZ$96.9 million ($60 million) to register a decrease of 69.1% as compared to FY 2021 but SkyCity stated that the business had returned strongly following the easing of the restrictions which allowed for record EGM activity in Auckland on weekends and holidays and EBITDA consistent with May and June levels.

    “Following the relaxation of operating restrictions during the final quarter of the 2022 financial year, SkyCity has seen the strong performance from its local gaming businesses in New Zealand continue into the 2023 financial year and improved performance from SkyCity Adelaide,” the company said.

    Recovery to Pre-Pandemic Levels in FY 2023

    The company also believes that its tourism-related business will benefit from the increase in domestic visitation, especially during non-working days, and continue to recover to pre-pandemic levels.

    SkyCity “sees a credible pathway” for the business to return to pre-pandemic levels in FY 2023, “provided that there are no material changes to the current operational environment and trading conditions.”

    Outside of FY 2022, SkyCity became the latest casino operator to be subjected to an independent inquiry in Australia after the South Australia body regulating Liquor, Gambling & Lotteries announced a review of the state’s casino operations at the beginning of July.

    At the end of the month, the independent inquiry appointed in South Australia to review operations at SkyCity Adelaide launched a period for public submissions for all interested parties ahead of the launch of the probe into the casino’s dealings.

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