Czech Gambling Group SAZKA Shelves London IPO Strategies in Nightmare Week for LSE

A nightmare week for the London Stock Exchange Proceeds as SAZKA Group puts listing on ice due to market volatility

Czech lottery and betting operator SAZKA Group has iced plans to float on the London Stock Exchange, citing market’s volatility as the reason behind its choice. The statement came as the most recent of a round of lousy news for the stock market.

SAZKA first declared its flotation intentions last fall. The company reportedly planned to utilize its London listing to spearhead its bidding for UK’s National Lottery license. Local lottery team Camelot now holds said license, but it is set to change hands in 2023. The UK Gambling Commission is anticipated to commence preparations for the bidding process at some point in 2019.

SAZKA stated in a statement to the Press Association the “volatile market environment” and a number of additional doubts were the motives behind its decision to put its own London flotation on grip.

The Czech lottery group included in its statement that IPO plans could be restored after market conditions improve and “there is greater clarity over these and other uncertainties”.

SAZKA was not the only leading European gaming company to have lately considered London record. UK online sports betting giant Sky Betting & Gambling signaled such plans early this year. The deal is set to create the largest publicly traded online gaming company.

Growth through Important Acquisitions

SAZKA is just one of Europe’s biggest gaming classes. Businesses the team owns stakes in annually take over €16 billion in bets, based on official financial statistics.

Most recently, the company acquired a controlling stake in Croatia’s largest land-based and internet sports betting operator SuperSport. The deal included the chance for the group to raise its shareholding to 100% in the next several years. Earlier this year, SAZKA also extended its shareholding in Casinos Austria to 34 percent through a subsidiary.

In 2016, the Czech gaming group bought a 32.5percent stake in Italian lottery operator Lottoitalia. In addition, SAZKA also owns a 72% stake in a fund which owns a controlling stake in Greek betting and lottery giant OPAP.

Group CEO Robert Chvatal has previously said that the Australian team continues to be considering different options to encourage its growth later on, along with also an IPO, product innovations, customer experience in the internet industry and geographical expansion are one of the options considered.

SAZKA recorded earnings increase of 177% annually as a consequence in the consolidation of OPAP’s operations. The company reported earnings of €1.13 billion for its entire 2017, while earnings climbed 165% to €353.4 million and after-tax profit jumped 105 percent to €189.5 million.

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