Groupe Partouche has not not been a jackpot for its shareholders. In less than five years, the stock of the first French operator of casinos has been divided by ten. The blame for crisis, competition from online gambling and the smoking ban in public places. Sebastian Korchia, manager at Meeschaert AM MAM Family Business (FR0000988933) is nevertheless of the view that Group Partouche could have eaten his black bread.
2010 earnings of Group Partouche reflect the crisis that the group went through in recent years. The French leader casinos posted a net loss of 58 ME in the past year. It rose to 16.7 million in 2009. The operating profit (-25.9 MOE), meanwhile, was weighed down by impairment to goodwill.
Four years of bad luck
Sébastien Korchia, the manager of MAM Family Business (FR0000988933), it is no longer appropriate to dwell on the bad results: “The group has accumulated disability and difficulties in the past four years. He had to cope with the downturn of traditional games, the economic crisis, competition from online gaming, increasing the tax burden due to an increase in CSG, and the prohibition of smoking in public places whose impact on public attendance at casinos is now beginning to subside. The addition of all these headwinds led Group Partouche to record losses and find an extremely deteriorated financial situation, all leading to a real stock market crash, “since the title has loosened over 80% in five years.
This bleak picture does not shake completely Sebastian Korchia who believes that Partouche is perhaps the dawn of a history of recovery, as would delight the dung beetles. “Firstly,” notes Human Meeschaert AM, “the loss of 2010 were heavier items. The group has cleaned up its accounts. ”
Then, with the improvement of the economic cycle, ” Partouche probably will reconnect with benefits “says the asset manager Meeschaert AM” whose profits growth will be even stronger than the base effects will be extremely favorable, years previous was bad or very bad. ”
The figures released by Groupe Partouche under the first quarter of fiscal year 2010/2011 are as such, encouraging. The turnover of the casino operator is greater than analysts’ expectations and up from 5.7% to 122.7 ME. The casino business (96% of the total, the remainder being attributable to the hotel) for the period increased by 6.2%. In the wake of the publication, Gilbert Dupont issued an opinion on Earn Group Partouche he matched a target price of 3.14 euros (2.69 euros previously cons).
Valuation of casinos at the low point?
Another positive sign, according to Sebastian Korchia: the renewed interest in the sector from investment funds, renewed perceptible through the takeover of part of Fimalac Lucien Barriere and the entrance next to the capital of Partouche Butler Capital Partners. “If these major equity specialists who typically seek high returns go to the casino sector, perhaps it is a sign that the recovery of it in France has reached a floor. ”
Butler Capital Partners: money welcome to Partouche
But beyond these sectoral considerations, the arrival of Butler Capital Partners is the manager after MAM Family Business is great news for Groupe Partouche . “Butler Capital Partners in April guarantee of EUR 2 per share capital increase through which Partouche will raise 30 ME. This transaction will allow Butler Capital Partners to hold between 12.5% ??and 15.5% stake in Groupe Partouche -stress balance very tight this year. The ratio of debt to equity, which had peaked to 126% and had dropped from 98% and will fall to 51%. With this new money, the casino operator is given oxygen and time to sell some of its assets, taking care not to sell out. ”
Besides, the market does not make a mistake. “While the capital increase shall be effected at a price lower than the security at the time of its announcement, the action Partouche has not fallen. Instead, the opposite happened, “said the manager. “The title has got 3 euro, and has stabilized at around 2.70 euros since. ”
Briefly, after the lights have been bright red to orange pass slowly except green. “And when you see the path of fellow American casinos, one can say that if the good news is confirmed, the stock exchange history of Groupe Partouche can really attractive again, “insists the manager of MAM Family Business.
The shareholders of Partouche what would really be rubbing their hands as if the market was on track for its American counterparts: Las Vegas Sands, which stagnated at a low of 1.5 dollars in 2009 worth $ 43 March 4. As for Wynn Resorts, which owns casinos (Las Vegas) as well as luxury hotels (Las Vegas, Macau), its action was increased from $ 150 in 2007 to $ 13 in 2009 at the height of the crisis, has risen to negotiate since March 4 at about $ 130 per share.
A small bet on Partouche
However, the manager of Meeschaert AM is careful not to prematurely sell the chickens and do not underestimate the risks to the folder. “The recovery Fellow Group Partouche is conditional on a favorable cycle. In addition, players in the gaming industry are not in the current environment free from increased tax burden. “So, it is best not wholesale paris on the title. “The record includes more and more interest but be careful. Give a first time Partouche a small line in a portfolio to eventually strengthen seems the best course of action, “says Sebastian Korchia ( Partouche represents 1% of MAM Family Business), which sets a target of 3 euros in the short term before to expect a course of 4 Euros horizon of 12 to 18 months.