MGM China has categorically dismissed rumors suggesting that its co-chairperson and executive director, Pansy Ho Chiu King, has any intention of reducing her shareholding in the company. Reports from Hong Kong media had suggested that up to 380 million shares in MGM China were recently shifted into the Central Clearing and Settlement System (CCASS), triggering speculation about Ho’s possible divestment.

MGM China Maintains Pansy Ho’s Steadfast Position

The share rearrangement occurred in two stages – first in mid-October through Standard Chartered Bank (Hong Kong) and later in mid-November via BNP Paribas. Contrary to market speculation, MGM China clarified that these transactions were part of previously arranged dealings between Ho and her custodian banks and did not signify any sell-off, reported Macau Business.

MGM China’s financial performance for the third quarter of 2023 showcased resilience, with net revenue reaching $813 million, marking a notable 10% increase compared to the same period in 2019, pre-pandemic. The adjusted property EBITDAR also witnessed a robust ascent by 23% from the second quarter, amounting to $226 million. Analysts at JP Morgan Securities (Asia Pacific) noted that the figures exceeded expectations by 3%, primarily driven by gains in the company’s share of the mass market.

Pansy Ho, the eldest daughter of Macau casino patriarch Stanley Ho, is a significant shareholder in MGM China, holding the entirety of her equity interest, which recently amounted to 380 million shares. Although Ho has a track record of reducing her stake in MGM Resorts International since 2019, she has consistently maintained her position in MGM China.

Market Fluctuations Pose Hurdles for Pansy Ho’s Potential Divestment

Market observers suggested that even if Ho were contemplating a sale, the current climate may not be conducive. Macau casino stocks have recently experienced a dip, with all but MGM China touching their lowest levels since early 2022. This could potentially dissuade Ho from any significant divestment, given her historical aversion to selling low.

At the same time, investors from Asia and beyond are increasingly turning to Macau casino debt, viewing it as a more lucrative and potentially less risky option than corporate debt or shares. The recovering gross gaming revenue in Macau has attracted attention, signaling a brighter future for the region. 

Despite Macau stock prices struggling to reach pre-pandemic levels, investing in bonds is seen as a more secure option, with trust in Macau casino bonds leading to credit rating upgrades for companies like Sands China and Melco. The appeal also stems from Asia’s low default rates and a decrease in overall bond market supply due to the departure of many Chinese firms. 

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Such a strategic move should have many significant long-term benefits to the organization, aligning with its goals to streamline its business and refocus on core markets. A sturdy financial foundation will be instrumental in Catena Media’s planned 2024 North Carolina launch, requiring significant capital and lasting shareholder confidence.

The Company Completed Its Short-Term Objectives

Catena Media’s shareholders approved the share buyback program during the extraordinary general meeting on 12 July, following an initial resolution from 24 May. The organization noted that the initiative aimed to improve shareholder value while optimizing the underlying capital structure by reducing its share capital. To that end, Catena Media planned the subsequent cancellation of repurchased shares.

During the designated buyback period, Catena Media effectively repurchased 264,969 ordinary shares. The company now has 2,053,976 ordinary shares, while 78,769,812 outstanding shares remain available. This measured approach reflects the organization’s commitment to prudent financial management and its dedication to providing long-term shareholder value.

Carnegie Investment Bank AB facilitated all share repurchases on Nasdaq Stockholm on behalf of Catena Media, guaranteeing a fair and transparent process. The executed buyback demonstrates the company’s confidence in its prospects and underscores its proactive approach to optimizing its capital structure and aligning its financial strategies with its growth objectives. 

Significant Corporate Debt Presents a Pressing Concern

Catena Media’s dedication to prudent financial practices and its focus on generating sustainable value has positioned the company as a leader in the competitive iGaming affiliate marketing sector. Its Q1 2023 financial results reflected significant room for growth despite the dip in revenue. Catena CEO Michael Daly was optimistic about the company’s prospects, predicting new successes.

A stable financial foundation should prove instrumental for Catena’s long-term ambitions. The affiliate is preparing for a 2024 North Carolina launch, hoping to leverage the state’s significant potential. However, Catena’s large corporate debt still presents significant challenges, and its board is considering every avenue to tackle this problem.

As Catena Media continues to navigate the dynamic landscape of the iGaming industry, its commitment to responsible financial management and value creation remains steadfast. With the completion of this share buyback program, the company is well-positioned to pursue its strategic objectives, leverage emerging market opportunities, and contribute to the continued growth and innovation within the affiliate marketing sector.

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The fast-growing iGaming company, Glitnor Group, which is behind the popular business-to-business brand, Swintt, announced a new investment Monday. The company revealed that it will significantly expand its footprint in the United States by acquiring a 37.5% stake in PlayStar Gaming Group. According to Glitnor, the investment will be completed over time, enabling it to strengthen its presence in the US and at the same time, help PlayStar continue to grow.

Judging by a statement released by Glitnor, the investment will be completed through its initiative that is designed to support and invest in up-and-coming businesses called Glitnor Ventures. Additionally, Glitnor confirmed that the strategic investment in PlayStar complements its growth strategy as the company anticipates further expansion in North America this year.

It was last year in August when PlayStar entered the iGaming vertical in New Jersey and quickly became a leading operator in the state. One of the primary advantages the online casino has is the unique personalized services that are available for Garden State residents, as well as a plethora of online and offline incentives and promotions. Renowned for its localized approach, PlayStar enjoys the attention of a growing number of customers in New Jersey, while surpassing targets ahead of its anniversary in the state.

Now, thanks to the strategic investment by Glitnor, PlayStar is expected to continue growing and expand its presence further in New Jersey, as well as other states. The new collaboration will see Glitnor collaborate closely with the online casino in a move that is expected to bring benefits for the duo.

The Investment Is Expected to Help PlayStar Continue Growing

Per Hellberg, PlayStar Casino’s CEO, shared his excitement about the strategic tie-up with Glitnor. He pointed out that the company is delighted to join forces with Glitnor and predicted success for the duo. In conclusion, Hellberg noted: “With Glitnor Group’s funding and support behind us, I’m sure PlayStar will go from strength to strength in 2023 and beyond, enabling us to further cement our position as the preferred online casino in the thriving US market.”

“PlayStar is delighted for Glitnor Group’s committed investments and we believe their ongoing interest in our brand is a fitting reward for what has been a remarkable debut year for us in the New Jersey market.“

Per Hellberg, CEO at PlayStar Casino

Jörgen Nordlund, Glitnor’s co-founder, explained that the company identified PlayStar as its perfect partner for growth within the US. He explained that Glitnor’s investment in PlayStar comes after the brand’s successful launch, powered by a localized approach and unique activations. Last but not least, Hellberg said that Glitnor anticipates further growth throughout 2023.

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Catena Media, a global leader in generating high-value leads for operators of online casino and sports betting platforms, has unveiled a new SEK 55 million ($5.36 million, current conversion rates) share buyback program.

The buyback was approved by the company’s board of directors during the extraordinary general meeting on July 12 and following an initial resolution from May 24.

As announced by the company, the share buyback program will be managed by a third-party investment firm or credit institution that will independently make decisions on the timing of the buybacks. Any acquisition of Catena Media’s own shares will be made on Nasdaq Stockholm, Catena Media added.

Catena Media also noted that the goal of the initiative is to improve shareholder value while optimizing the company’s capital structure through a reduction of its share capital. To that end, Catena Media also plans subsequent cancellation of repurchased shares.

Catena Media explained that the program will take all applicable regulations in mind, including the rules of Nasdaq’s Nordic Main Market Rulebook for Issuers of Shares.

The Program Must Follow Five Conditions

Catena Media outlined five major conditions that its share buyback program must follow:

First of all, the buybacks will be made on one or several occasions by December 31. In addition, the maximum price of shares that the company may buy back is SEK 55 million ($5.36 million).

Furthermore, Catena Media noted that shares may be repurchased to the extent that Catena Media’s holdings of its own shares do not surpass 10% of its total issued share capital and that the total number of shares should not exceed 7,203,534 shares.

The fourth condition is that Catena Media may only repurchase shares at a price within the price interval recorded on Nasdaq Stockholm. Finally, Catena Media must make all payments in cash.

Catena Media noted that it currently holds around 0.8% of its ordinary shares (614,193). For reference, the company has a total of 78,769,812 outstanding shares.

The company promised to keep releasing updates on the repurchases of its own shares, as required by Nasdaq Stockholm’s rules.

Last month, Catena Media confirmed its plans to launch in North Carolina next year. The announcement coincided with the legalization of betting and the expected launch of a local market in 2024.

In May, the company published its Q1 report, demonstrating strong results in spite of a slight revenue dip.

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Casino gaming and sports betting company PENN Entertainment announced the completion of its previously announced acquisition of the remaining share of Barstool Sports for approximately $388 million.

The acquisition of the remaining interest in Barstool Sports completed the second stage of the acquisition of the sports media brand in which PENN acquired a 36% stake in February 2020.

Pleased to welcome Barstool Sports fully into the PENN family, PENN’s chief executive officer and president, Jay Snowden, outlined Barstool’s credentials which lured PENN into the acquisition.

Barstool is a proven, powerful media brand with an authentic voice and vast, loyal audience that provides us with a strong top of funnel for new customer acquisition and organic cross-selling opportunities across our growing interactive division.

Jay Snowden, CEO & President, PENN

He further highlighted that the combination “with theScore’s reach and highly engaged user base” would help propel the brand and PENN’s integrated media and gaming business by creating “a massive digital footprint and ecosystem.”

Another benefit for Barstool would be its migration to PENN’s proprietary technology stack as it would “significantly enhance the overall product offering and deliver meaningful upside,” Snowden concluded.

Partners since 2020

PENN Entertainment initially announced the acquisition of the remaining interest in Barstool Sports in August last year after several years of working together with the brand since the $163 million initial interest acquisition deal in 2020 which followed the exclusive sports betting and iCasino partnership agreed upon by the parties in January 2020.

The acquisition took place during times when the founded as a free sports and gambling newspaper brand by Dave Portnoy in 2003 celebrates its 20^th anniversary – a period during which Barstool Sports has evolved into a major player on the digital scene, operating across sports, lifestyle and entertainment.

“Barstool Sports is bigger than ever and has become more than I ever dreamed of,” Portnoy commented, thankful to the Barstool team and everyone who has been along for the ride, looking forward to the brand’s next chapter with PENN.

Boasting a loyal fan base of over 200 million, Barstool Sports affirmed itself as a multimedia brand, creating over 100 sports and comedy shows and delivering content via span podcasts, video, social media, live events, pay-per-view, and its growing commerce business.

Also commenting on the announcement, Barstool Sports’ chief executive officer, Erika Ayers, underscored the huge moment that was made possible after a lot of effort had been put in by a lot of people, stressing Barstool’s objective of creating “relevant and entertaining content” for the fans, as well as delivering “strong results” for its partners.

“It’s exciting to have that vision recognized and to be able to put it to work inside of PENN,” Ayers added, paying tribute to “the best fan base on the planet” and eager to deliver more for the fans “with PENN’s support.”

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