Key insights
- The author expresses a bullish outlook on Hacksaw AB, an online slot provider, citing strong EBITDA margins, revenue growth potential in the expanding US market, and attractive valuation relative to industry peers. The author highlights the company's market leadership in the slots industry and upcoming game releases as potential catalysts. However, the lack of a CEO and increased regulation in the European market pose risks. Limited US market influence due to the company's small size.
I’m holding 68% of my portefolio in Hacksaw AB at the moment. They specialize in online slots, working as a supplier of games to casinos. They are partnering up with new casinos each Month. They develop software in house, and once a machine is brought to life it creates revenue. It’s a one time cost. They also acquired openRPG a few months back. So now they also develop slots for other igaming companies, creating a new revenue stream. they mainly earn money each time their machines are utillized on a online casino.
They did an ipo less than a year ago. 10% buyback coming up, 82% ebitda, dividend was 0,4 euro pr. Stock 2 weeks ago, pe is 14.37 whereas the Industry average is around 17-ish.
They are expected to grow their revenue by 30% this year, their main market Europe is getting a bit more regulated and the market fell 5,4% overall yoy. The American market on the other hand is still opening up and is growing 37% yoy atm.
Just to give an example
What was put into accounts last week: Stake= 402m$ Roobet= 95,9m$ Rainbet= 62,3m$
Exact Same week, last year.: Stake= 320,9m$ Roobet= 88,5m$ Rainbet= 0,5m$
I have tried their machines several times myself, and overall they are very entertaining, with huge jackpots. I ended up losing 2 grand on their slots. Then I thought to myself; if you can’t beat Them, join Them.
My average is @58,79.
Whatever metric you’re finding, It’s pointing towards Hacksaw being marketleaders in the slots Industry. They beat guidance for q1, and their biggest franchise is the “le”-machines. They have 2 new “le” games coming out in q2. There is “le football fan” coming out in a month coinciting with the World Cup.
They are without a ceo at for 3 weeks now, which I hope won’t continue for too Long. If they find someone soon it can be a positive catalysator. The Stock has momentum atm and is ath - so it might seem like an exepensive buy at the moment, but I Think it Will continue to soar. I’m dca’ing each month with all I have.
I know the product, I have faith in the Company, they have low costs and great margins, i like the business model.
Their biggest threat is regulation, but other than that I Can’t see Them loose momentum.
This is not a financial advise!