Stocks Tracker: Redundancies and talk of tax hikes provide a mixed bag for October

Better Collective 

1 October closing: SEK226 

31 October closing: SEK139.80 

Peak October closing: SEK226 

October was a month to forget for Better Collective, as the group’s share price fell steeply due to a string of redundancies as part of the company’s restructuring. 

The firm’s CEO Jesper Søgaard took to LinkedIn to announce the news and conceded that there had been “emotional days” recently, following the cost-cutting measures. 

Upon release of the news, which came post-market close on Thursday 24 October, Better Collective’s share price opened the next day at SEK162.60, a sharp decline from the previous close of SEK223.50. 

By the end of that week, the stock had fallen by 41.2% from Thursday’s close to sit at SEK131.40. The restructure came as a result of a reported slowdown of business in the US and Brazil, with Better Collective aiming to save around €50m per year with its cuts.

Comparing the outfit’s stock price from the beginning of the month to the end, the 39.7% decline in value will make for tough reading for Better Collective bosses. 

Entain 

1 October closing: 770p 

31 October closing: 745p 

Peak October closing: 774p 

The Gavin Isaacs era continues to get off to a bright start as Entain, like the rest of the UK’s operators, gave a sigh of relief after Labour’s first Budget since winning the general election in the summer.

Chancellor of the Exchequer Rachel Reeves opted against raising UK gaming duties, despite relentless speculation throughout the month suggesting that Labour would do the opposite in their first Budget announcement for 15 years. 

The Guardian had reported on Friday, 11 October, that the Treasury was considering raising taxes in line with two think tanks: the IPPR and SMF. The IPPR had suggested raising online casino tax from 21% to 50%, while the SMF had argued for a doubling of the rate to 42%.

It was that speculation that initially caused Entain’s own share price to slump by 8% on Monday 14 October as investor panic appeared to creep in and Ladbrokes’ parent company closed the following day at 681p. 

However, a strong performance in Q3 swiftly eased any nerves, particularly after Entain raised its full-year guidance, with the operator declaring: “As a result of a stronger-than-expected third-quarter performance, and increased confidence for the balance of the year, full-year online pro forma NGR growth is now expected to be mid-single digit positive on a constant currency basis. 

“Group earnings before interest, tax, depreciation and amortisation is expected to be towards the top end of our £1.04bn to £1.09bn guidance range.” 

By 30 October, Entain’s share value had hit its monthly high of 780p, with the Budget having failed to materialise a tax hike and giving a welcome boost to the business’ stock.

Evoke 

1 October closing: 648p 

31 October closing: 616p 

Peak October closing: 669p 

Evoke’s trajectory was notably similar to that of Entain’s and for largely the same reasons, lingering fears of UK tax hikes sparked some concern, before 3% growth in what was a positive Q3 display went some way to easing any tension. 

The Q3 performance led to the 888 and William Hill parent company reiterating its expectations for the next fiscal year, with revenue growth of anywhere between 5% and 9% expected, alongside a profit margin of 21%. 

Like Entain and a number of other UK-listed operators, the middle of October saw share value start to dip as the rumour mill surrounding tax increases went into overdrive, though slowly but surely evoke’s shares began to head in a positive direction and has been climbing ever since the month’s low of 510p, recorded on Friday 25 October. 

Before the turn of the month, evoke’s share price managed to rally from that low a week prior, thanks in large part to Reeves’ Budget, and closed October at 616p.

Gentoo  

1 October closing: SEK26.50 

31 October closing: SEK25 

Peak October closing: SEK26.50 

October marked Gentoo Media’s first month listed as a sole entity following Gaming Innovation Group’s strategic split that turned its media and platform divisions into two separate companies. 

However, it was anything but plain sailing, with Gentoo caught up in what was a bleak four weeks for affiliates across the industry. 

The firm’s worst day of the month came on Thursday, 24 October, where Gentoo’s share price reached its lowest point at SEK22.50.  

A trading update soon followed, in which bosses outlined Q3 revenue is expected to land at €30.4m, alongside an EBITDA margin of between 46% and 48% that inspired an immediate climb, and by the end of the month the affiliate’s stock had increased to SEK25.00 

Betsson 

1 October closing: SEK125 

31 October closing: SEK141.72 

Peak October closing: SEK141.72 

Betsson’s Q3 results release proved instrumental in what was a strong month for the operator’s share price, which ended October with a 13.9% increase in value compared to the start. 

The Stockholm-listed operator opened the month with its stock valued at SEK124.20 and there was little movement until Betsson’s earnings update, which revealed an 18% year-on-year (YoY) increase in revenue, while online casino revenue reached an all-time high. 

The firm’s topline figure for the third quarter was recorded at €280.1m (£233.6m), while EBITDA also climbed 17% YoY to €80.3m. Following the release of its results, early morning trading on Thursday 24 October saw the firm’s shares jump 8% to SEK138. 

A brief dip was followed by a positive end to the month, with the operator seeing its stock peak at SEK142.42 at one point on 31 October. 

The momentum is showing no signs of slowing down in November’s opening exchanges, with Betsson’s stock currently trading at SEK143.18 at the time of writing.