Casino Group takes note of Moody's decision and remains focused on its strategic and financial objectives for 2019-2021
Paris, 2 April 2019,
Casino Group takes note of Moody's decision to downgrade its financial rating from Ba1 negative outlook to Ba3 negative outlook.
The Group notes that Moody's bases its analysis on Casino's gross debt at the end of 2018, which does not take into account either the disposal plan or the future reduction in bond debt.
While every Internet gambling site will Outlook Groupe Casino feature multiple flavors of video poker, real multiplayer poker tables are only available at a few of the biggest sites in the industry. Outlook Groupe Casino If live poker is a prerequisite for your gaming portfolio, venues like Bovada and BetOnline are the best digital felts around. A forecast of the global casinos and gambling industry till 2023 is included. The report also includes a coverage of the 10 biggest casinos in the world such as The Venetian Macao, the City of. In the casino industry, offline physical contact is essential for normal operations. Although there exists a loyal client base, a recovery in non-VIP visitor numbers is to remain key to earnings recovery. In 2021, a selective approach to the casino industry based on visitor recovery outlook is recommended. Who will manage better amid Covid-19? Casino’s Weak Profit Raises Risks for Rallye’s Debt Outlook By. “Groupe Casino’s halving of its French retail Ebit growth target to 5% is immediately attributable to a second year of.
Moody's also states that the Group is well positioned in convenience formats and online activities, and that it has the potential to generate new sources of revenues, particularly through its Greenyellow and 3W relevanC subsidiaries.
In addition, Moody's positively highlights the Group's limited and decreasing exposure to the declining hypermarket format.
This change in rating has no impact on the availability or cost of the Group's financial resources.
As at 31 December 2018, Casino in France had €5.0 billion in liquidity, composed of a gross cash position of €2.1 billion and confirmed credit lines of €2.9 billion with an average maturity of 2.4 years.
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The Group, focused on the dynamic achievement of the strategic and financial objectives announced for 2019-2021, has recently increased its asset disposal plan target by €1 billion to at least €2.5 billion by the first quarter of 2020. It also plans to generate, beyond and above this disposal plan, free cash-flow in France of €500 million per year, enabling it to cover its dividends and financial expenses.
ANALYST AND INVESTOR CONTACTS
Régine Gaggioli - +33 (0)1 53 65 64 17
rgaggioli@groupe-casino.fr
or
+33 (0)1 53 65 24 17
IR_Casino@groupe-casino.fr
PRESS CONTACTS
CasinoGroup - Direction of Communication
Stéphanie ABADIE - sabadie@groupe-casino.fr - +33 (0)6 26 27 37 05
or
+33(0)1 53 65 24 78 - directiondelacommunication@groupe-casino.fr
Agence IMAGE 7
Karine ALLOUIS - +33(0)1 53 70 74 84 - kallouis@image7.fr
Grégoire LUCAS - gregoire.lucas@image7.fr
Disclaimer
This press release was prepared solely for information purposes, and should not be construed as a solicitation or an offer to buy or sell securities or related financial instruments. Likewise, it does not provide and should not be treated as providing investment advice. It has no connection with the specific investment objectives, financial situation or needs of any receiver. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgement. All the opinions expressed herein are subject to change without notice.
The author is an analyst of NH Investment & Securities. She can be reached at hzl.lee@nhqv.com. -- Ed.
The imposition of social distancing measures to limit the spread of Covid-19 has greatly hindered operations of crowded facilities such as concert halls, cinemas, and casinos. And, as long as the Covid-19 crisis continues, operations of the entertainment and casino industries are unlikely to normalize. While these industries’ fate in 2021 will depend on developments in the Covid-19 crisis, we draw attention to a selection of players whose efforts to migrate their services online have begun paying off.
We note that some domestic entertainment companies have begun holding concerts online. Though feeling a bit less engaging, online concerts have been successful in attracting fans—a development which we attribute to the inherent limitations of in-person concert attendance. That said, there exists some room for improvement in terms of margins. Investors are recommended to pay attention to plays which are expected to generate meaningful profits from online services next year.
In the casino industry, offline physical contact is essential for normal operations. Although there exists a loyal client base, a recovery in non-VIP visitor numbers is to remain key to earnings recovery. In 2021, a selective approach to the casino industry based on visitor recovery outlook is recommended.
Who will manage better amid Covid-19?
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With Covid-19 persisting, consumers have been restricted from enjoying entertainment and casino services as much as they would like. With concert halls, theaters, and casino facilities being multi-purpose facilities where large numbers of people gather, user numbers have been limited—hitting the entertainment and casino sectors hard. We cannot say with certainty that the two sectors will recover next year, owing to Covid-19; the end of Covid-19 is to remain the key to earnings normalization. That said, we note that some companies are standing out, thanks to their non-face-to-face service offerings.
I. Entertainment: Looking is enough
Amid Covid-19, some entertainment companies are holding online streaming concerts. While online concerts are relatively less vibrant, in-person concert attendance comes with its own limitations and drawbacks in terms of distance from the performance. Accordingly, the shift to online concerts is deemed as being effective for entertainment plays. However, only a handful are currently reaping profits from their online shows. Accordingly, we advise investing in those entertainment firms that: 1) can enjoy economies of scale; or 2) boast strong content and digital track portfolios to help generate meaningful profits from online concerts.
II. Casino: Waiting for gamblers to return
In the casino business, sales cannot be generated unless gamblers actually visit the casino floor and play together. In other words, a recovery in the casino industry requires the physical return of domestic and foreign gamblers. As for casinos allowing Koreans’ access, earnings should improve in the near future unless social distancing measures are strengthened further. But, foreigner-only casinos are unlikely to enjoy earnings growth without the introduction of an air travel bubble (ATB) or the development of a Covid-19 vaccine.
III. Top picks
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While there exist expectations towards Covid-19 vaccine development, given that it is difficult to exactly predict when a vaccine will become available, we recommend that investors adhere to a selective approach regarding the entertainment/casino sector. We maintain a Neutral rating towards the entertainment sector, believing that it will take some time for online concerns to start generating substantial margins. We present YG Entertainment (YG Ent) as our top pick, in light of its strengths in the digital music business. Turning to the casino sector, we adhere to a Positive rating, believing that earnings have reached bottom this year. We offer Kangwon Land as our top pick, expecting the firm to benefit from the return of Korean gamblers.