Stocks Tracker: Results ramifications, rebrands and acquisitions lead to share price shifts
EGR analyses the share price movements of major industry players in March, including 888, Flutter and Gambling.com Group
888
4 March closing: 83.85p
28 March closing: 88.50p
Peak March closing: 89p
It was all change in March for 888 with major strategic movies bookending the month for the London-listed firm. The operator kicked the month off by commencing a strategic review of its US B2C business on 6 March, leading to an uptick in the group’s share price to 83.35p from a previous close of 82.90p.
At the time of the announcement, 888 did not give a timeline for the completion of the review. However, the process was completed within the month, as on 28 March it was revealed Hard Rock Digital was to snap up US B2C business in an undisclosed deal.
A decline to a monthly low of 80.65p on 12 March was followed by 888’s share price steadily increasing, reaching a new monthly peak on 22 March of 87.20p, coinciding with the Gambling Commission announcing the firm would face no regulatory punishment following a review of its UK licence.
On 25 March, the price fell to 83.80p, 24 hours before the group released its full-year 2023 results and announced a new value creation plan, which will include changing the company’s name to evoke plc.
888 recorded a 38% increase in revenue in the past 12 months, while the market reacted positively to CEO Per Widerström’s new plan and assembled C-suite, with 888’s stock jumping to a monthly high of 89p at the close of play.
Flutter
4 March closing: £168.45
28 March closing: £157.90
Peak March closing: £174.75
Flutter started March by confirming several changes to various committees within the business after David Lazzarto announced he would not be seeking re-election to the company’s board of directors at May’s AGM. Those moves preceded a steady opening to the month on the London Stock Exchange as Flutter’s stock ticked up steadily, peaking at £174.75 on 13 March.
March was seemingly to be pegged as a stable month for the Paddy Power owner, with the group’s share price having levelled off at £172.85 by 25 March, but the publication of the group’s full-year 2023 results brought about a significant slip on the market.
With the results released on 26 March, the firm’s closing price on the day landed at £170.95, but then the share price plummeted to £156.75 by the end of 27 March. The decrease came despite group revenue rising by almost 25% and FanDuel continuing to perform well in the US.
However, Flutter reported a $1.21bn net loss in 2023, including a loss of $725m relating to an impairment of trademarks associated with the PokerStars brand and a charge of $791m due to amortisation of acquired intangibles.
At the end of January, Flutter listed its shares on the New York Stock Exchange as a secondary listing, with the group confirming it plans to make the US its primary listing before the end of 2024.
Similarly to how the firm performed on the London Stock Exchange, the operator giant’s New York listing enjoyed a steady month with a monthly peak of $225.63 on 13 March. In tandem with the release of the full-year results, Flutter’s US shares fell from $214.84 on 26 March to $202.29 by close on 27 March.
The firm’s share price continued to drop, with the stock closing below the $200 mark by the end of the month.
Gambling.com Group
4 March closing: $8.64
28 March closing: $9.13
Peak March closing: $9.13
Gambling.com Group bounced back from a share price dip at the beginning of March to enjoy a 5% increase in its share price by the end of the month.
The affiliate’s share price had been increasing until a spike on 20 March to $9.13 took the group’s stock to a monthly high. This spike was due in part to the firm securing a new credit facility from multinational financial services company Wells Fargo worth $50m.
The next day, Gambling.com Group announced its full-year results and that it had snapped up various European and Canadian assets from XLMedia in a deal that could be worth up to $42.5m, with the Wells Fargo credit having been used to partially fund the move.
The firm reported a record Q4 in terms of revenue, and operating profit soared almost 3000% from a previous $305,000 loss to a positive return of $8.2m.
These record results and acquisition announcement did not translate into a continuation of share price growth; in fact, the firm’s share price dipped from $9.13 on 20 March to $8.80 at close on 21 March. However, the affiliate’s share price has been on the up since, returning to $9.13 by the end of March and continuing to rise into April.