Analysts project Y/Y revenue growth of up to 424% for the Canadian gaming and casino stocks on our list
SmallCapPower | March 10, 2017: Today we take a look at entertainment companies, ranging from casino operatives to mobile gaming app providers. The entertainment industry is often overlooked, seeing more customers for leisure than investors for capital gains. We have identified those Canadian casino and gaming stocks that analysts predict will have year-over-year growth in revenues, as these companies grow and expand their user base. To further compare their profiles, we have provided enterprise value to sales metrics.
Gamehost Inc. (TSX: GH) – $11.50
Casinos & Gaming
Gamehost Inc. operates hospitality and gaming properties. The Company’s segments include Gaming, Hotel, and Food & Beverage. The Gaming segment includes approximately three casinos offering slot, video lottery terminal (VLT), lottery and table games. The Hotel segment includes over two hotels catering to mid-range clients. The Food and Beverage segment has operations that are located within the casinos.
- Market Cap: $284.4 million
- Revenue (FY0, Default): $77.4 million
- Expected Revenue Growth (Y/Y): 14%
- Enterprise Value To Sales: 4.5x
Great Canadian Gaming Corp. (TSX: GC) – $23.79
Casinos & Gaming
Great Canadian Gaming Corporation operates gaming, entertainment and hospitality facilities in British Columbia, Ontario, New Brunswick, Nova Scotia and Washington State. The Company has approximately 20 gaming properties, consisting of over three community gaming centers, four racetracks and 10 casinos, including over two with a Four Diamond resort hotel.
- Market Cap: $1,462.3 million
- Revenue (FY0, Default): $566.4 million
- Expected Revenue Growth (Y/Y): 7%
- Enterprise Value To Sales: 3.0x
Intertain Group Ltd. (TSX: ITX) – $9.18
Online Services
The Intertain Group Limited, formerly Aumento Capital II Corporation, is an online gaming company that provides entertainment to customers. The Company offers bingo and casino games to its customers through Costa Bingo, Vera&John, Vera&Juan, Vera&John Social, Jackpotjoy, Starspins, Botemania, InterCasino, VIP Casino, and other brands. Its segments include Jackpotjoy, Vera&John, Mandalay and InterCasino.
- Market Cap: $180.6 million
- Revenue (FY0, Default): $384.5 million
- Expected Revenue Growth (Y/Y): 25%
- Enterprise Value To Sales: 0.9x
Gaming Group Ltd. (TSXV: NYX) – $1.05
Software
NYX Gaming Group Limited is a digital gaming software supplier engaged in the design, development, manufacture and distribution of digital gaming solutions for interactive, social and mobile gaming around the world. The Company provides a suite of gaming solutions, a distribution platform, full gaming process support services, brand and player management, and both Real Money Gaming (RMG) and social gaming products and services. The Company operates through the diversified gaming solutions segment.
- Market Cap: $114.3 million
- Revenue (FY0, Default): $52.3 million
- Expected Revenue Growth (Y/Y): 211%
- Enterprise Value To Sales: 3.0x
Shoal Games Ltd. (TSXV: SGW) – $0.51
Online Services
Shoal Games Ltd., formerly Bingo.com, Ltd., is a social bingo game provider. The Company is engaged primarily in the business of owning and marketing Trophy Bingo, a non-gambling social bingo game. Its segments include the sale of in-app purchases on Trophy Bingo, and the business of marketing games and entertainment based on the game of bingo through its Internet portal, bingo.com. The Trophy Bingo is a free-to-play mobile game live in the Apple, Google and Amazon application stores, and is free to download and supports in-app purchases and in-game advertising.
- Market Cap: $30.5 million
- Revenue (FY0, Default): $0.2 million
- Expected Revenue Growth (Y/Y): 424%
- Enterprise Value To Sales: 68.9x
