Equity Analyst, LightStream Research

Oshadhi Kumarasiri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

La Francaise des Jeux / Equity Capital Markets

La Française des Jeux (FDJ) is the French national lottery established in 1933 and it is the largest company in the French gaming sector and has a monopoly in draw and instant lotteries (both point of sales and online) as well as point of sale sports betting in France. Based on gross gaming revenues, FDJ is second only to Italy’s Lottomatica in Europe, and also the 4th largest player in the world.Our previous insight on <a href="https://www.smartkarma.com/insights/fdj-french-national-lottery-ipo-odds-of-winning-are-better-than-their-lotteries" target="_blank" rel="noopener">FDJ (French National Lottery) IPO: Odds of Winning Are Better than Their Lotteries</a> focused on FDJ’s strong business model, stable earnings growth and its monopolistic position in the market. This time we shift our attention to the valuation of FDJ and in this insight, we’ll be looking at return on equity, dividend yield and other relative valuation multiples for both FDJ and its peers.

La Française des Jeux (FDJ) is the French national lottery established in 1933 and it is the largest company in the French gaming sector and has a monopoly in draw and instant lotteries (both point of sales and online) as well as point of sale sports betting in France. Based on gross gaming revenues, FDJ is second only to Italy’s Lottomatica in Europe, and also the 4th largest player in the world.Our previous insight on FDJ (French National Lottery) IPO: Odds of Winning Are Better than Their Lotteries focused on FDJ’s strong business model, stable earnings growth and its monopolistic position in the market. This time we shift our attention to the valuation of FDJ and in this insight, we’ll be looking at return on equity, dividend yield and other relative valuation multiples for both FDJ and its peers.

FDJ (French National Lottery) IPO Valuation: 32% ROE & 5% Dividend Yield Merits a Higher Valuation

Leading International Investment Research, Edison Investment Research

Edison Investment Research

Leading International Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Equity Bottom-Up

Lotto24 extended its market leadership in 2016, with market share up from 26% to 31%. This demonstrates its core USPs: first mover advantage in the German online lottery market, management experience and marketing know-how. Despite a weak Q3, top-line growth remains strong (FY17 guidance of 10-15% billings growth). After heavy investment in technology and marketing, the business should reach FY17 EBIT break-even, with future profitability flexed according to jackpot opportunities. The stock has performed well but, in our view, there is plenty of upside, as online lottery continues to take a bigger slice of the overall German lottery market.

Lotto24 extended its market leadership in 2016, with market share up from 26% to 31%. This demonstrates its core USPs: first mover advantage in the German online lottery market, management experience and marketing know-how. Despite a weak Q3, top-line growth remains strong (FY17 guidance of 10-15% billings growth).  After heavy investment in technology and marketing, the business should reach FY17 EBIT break-even, with future profitability flexed according to jackpot opportunities. The stock has performed well but, in our view, there is plenty of upside, as online lottery continues to take a bigger slice of the overall German lottery market.

Lotto24 - A leader in the online lottery market

Germany

Lotto24 is a German online lottery brokerage business.  The Company provides online lottery services.

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Lotto24 (LO24 GY)

FDJ (French National Lottery) IPO Valuation: 32% ROE & 5% Dividend Yield Merits a Higher Valuation

La Française des Jeux (FDJ) is the French national lottery established in 1933 and it is the largest company in the French gaming sector and has a...

Oshadhi Kumarasiri

Lotto24 - A leader in the online lottery market

Lotto24 extended its market leadership in 2016, with market share up from 26% to 31%. This demonstrates its core USPs: first mover advantage in the...

Edison Investment Research

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