Phumalelo Results

Company interim results for the 6 month period ended Jan 13. Income up 9%...revenue from sports up 77%...they expect sports revenue to equal horse racing in 5 years...HEPS up 17%...PAT up 10%...Dividend up 12%...when you consider that the Met was moved from Jan to Feb these results are very good...they also lost a record number of race meetings in the period under review.

The most interesting part of the results is the fall off in profitability in local racing, which is masked by the sports betting profits increase. I fear the closure of more tracks and further cutbacks in prize money.

The end is nigh. !!!!!!

They planning on opening 28 Betting World shops and over 30 totes...plus introducing new bets...I think they gonna continue to grow and create value for their shareholders.

FC Wrote:

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> They planning on opening 28 Betting World shops
> and over 30 totes...plus introducing new bets...I
> think they gonna continue to grow and create value
> for their shareholders.


I have no doubt that they will provide value to shareholders but where is the future of local racing in the scheme of things.
If Kentucky fried Chicken need to start selling fried lamb chops to subsidise a failing chicken business ,that might/would be good for shareholders ............but bad for chicken suppliers...........shouldn't local racing,being the failing part of the business,be put into the hands of management that regard local horseracing as their core product.

rob faux Wrote:

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> FC Wrote:
>

---

>

---

> > They planning on opening 28 Betting World shops
> > and over 30 totes...plus introducing new
> bets...I
> > think they gonna continue to grow and create
> value
> > for their shareholders.
>
>
> I have no doubt that they will provide value to
> shareholders but where is the future of local
> racing in the scheme of things.
> If Kentucky fried Chicken need to start selling
> fried lamb chops to subsidise a failing chicken
> business ,that might/would be good for
> shareholders ............but bad for chicken
> suppliers...........shouldn't local racing,being
> the failing part of the business,be put into the
> hands of management that regard local horseracing
> as their core product.

Maybe that's why their name is P Gaming...this was always on the cards.

That has been obvious,and mentioned often on this forum,for ages.............what is less obvious is why the stakeholders who rely on the local industry for a living seem to be happy to support an organization that acquired the assets of local racing,but appears to be unable to sustain it's existence without disposing of those assets......how long will it be before the downward spiral is irreversible?
It would also be naive to believe that shareholders will subsidise a losing sector forever....maybe their long term strategy is to give us "virtual racing" as our local fare.
Surely it is time for stakeholders to call for a 5 or 10 year business plan as to how the local product will be managed into a positive state!

They enjoyed a good meydan with Pools up 26%,what would happen without the Igugu factor or MDK factor?

Their whole product relies on others they are just piggy backing on our wallets...

hibernia Wrote:

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> They enjoyed a good meydan with Pools up 26%,what
> would happen without the Igugu factor or MDK
> factor?
>
> Their whole product relies on others they are just
> piggy backing on our wallets...


Hibs,I don't for one minute believe that local racing cannot thrive under good management.............I am not negative about local racing at all..........................just the way it is being managed...........but it has to be rescued before it is totally destroyed.

www.moneyweb.co.za/moneyweb-financial/ph...ela-betting-on-sport

Says it all ...

@teamwildracing Wrote:

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> www.moneyweb.co.za/moneyweb-financial/phume
> lela-betting-on-sport
>
> Says it all ...

I was told from a participant that strategizing to improve the local horseracing product is a very low priority at "P" exco meetings.
They took their case for a monopolistic protection of their betting product to court, but got stuffed and are clueless how to respond in any other way!

Diversity is great but why not IN ADDITION TO a profitable racing product rather than IN PLACE OF.

reading the results and how sports betting is surging you have to wonder how gold circle sold their share in betting world and will have to outlay a fortune of money to get back into the bookmaking industry:o

Which ever way you look at it this is a good set of results