A recent report by CBRE Institutional Research highlights the increasing debt levels among gaming suppliers, revealing a mixed picture of financial stability across the sector.
CBRE released a comprehensive analysis of the debt levels and financial health of global gaming suppliers. The report indicates significant variation in outstanding debts and market performance among major players in the industry.
The data details mixed performance among gaming suppliers’ fixed-income instruments. Aristocrat Technologies Inc. and DraftKings Inc., for example, show relatively stable price performance, with minimal fluctuations over the past month.
In contrast, Entain Holdings Gibraltar Ltd. and Everi Holdings Inc. exhibit slight declines in their five-day and one-month price performance, indicating potential market volatility.
According to the report, Aristocrat Technologies Inc. holds $500 million in debt, reflecting relatively stable performance and a yield to convention of 6.19 percent, with a current price of $100.50. DraftKings Inc. carries $600 million in debt, showcasing similar stability with a yield to convention of 6.44 percent and a current price of $99.25.
Meanwhile, Entain Holdings Gibraltar Ltd. holds the largest debt at $1.26 billion, experiencing some price declines, yet achieving a yield to convention of 6.69 percent and trading at $100.56. Everi Holdings Inc. has $579 million in debt, showing comparable market fluctuations, with a yield to convention of 6.66 percent at a price of $100.13.
Evoke PLC stands out with a significantly higher yield to convention at 10.69 percent, reflecting a higher risk premium demanded by investors. The company’s former price of $96.88 suggests a discount in the market, possibly due to perceived higher risk or lower credit quality.
Overall, gaming suppliers demonstrate varying degrees of stability and risk, with yield to convention rates ranging from 6.19 percent to 10.69 percent.
