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u/Safe-Chipmunk-4417
1 day ago
Discussion
BRSL value is here. Q2 results and favourable jackpots for Q3
Firstly, if you're in the UK Brightstar lottery is incorporated in the UK and therefore you don't pay the tax on the dividend (despite it being traded in dollars on the American markets) currently an 8% dividend, which management have reiterated in their Q2 earnings that it's safe (and Q3 looks great so far, half way through). Ex dividend date is the 18th August, for $0.23 a share.
Q3 jackpot environment:
Mega millions was won at $800m (the highest jackpot of the year) Ticket sales are currently up on last jackpot reset run
Powerball is currently at $975m (entering crazy sales territory)
Super enalotto is at €208m (third highest ever!)
Debt levels were lower than expected and with Q3 set to benefit from a great jackpot environment, it will free up more cash to pay down the debt. Cost savings have also improved. New contracts are coming online for growth into new areas and also the lottery environment for euro millions is changing imminently, which will favour increased jackpots and surges in demand.
This is a fairly straightforward one to calculate for yourself, you can find the data for lotto sales and possibly come to the same conclusions as me.
Higher jackpots = higher sales = higher amount of small wins paid = more people reinvesting into more tickets/scratch cards.
The company is rapidly expanding a more profitable online presence that is showing strong growth.
I've run the numbers on this one for months. It will re-rate in the next few months I am sure. Too much good happening, sales are naturally up for Q3 on top of the jackpot environment so it really is a case of research this for yourself now and grab the steady dividend while you wait.
What else has happened?
Powerball has let UK join the mix and now they contribute to the jackpots, shortening the gap between frenzy jackpot sales.
The company bought back shares
New CEO started July
New contract extensions secured
Take a look at the current debt levels Vs previous debt levels and the revenue at the time Vs the share price now and those levels now. Huge disconnect.