Phumelela places a bet on diversification
The gaming company aims to boost earnings with new acquisitions and broader client access
Gaming conglomerate Phumelela has pegged its interim dividend at 34c per share in the half-year to the end of January, but says it has confidence in its recent diversification efforts into sports betting. Although headline earnings were up only 3% to 90c per share, the company’s fixed-odds betting segment drove up income 8% to R139.3m. A potential game changer could be the recent acquisition of a 50% stake in Supabets SA Holdings for R437m, which became effective in March. Supabets is a fast-growing betting and gaming group with a focus on the high-growth, fixed-odds sports betting market. CEO Rian du Plessis said the Supabets investment opened an exciting new chapter for Phumelela. "We have already identified opportunities for the extraction of synergistic benefits and growth with our partners." He said Supabets would contribute for the remaining five months of the financial year and would be earnings accretive. The company also increased its stake in online betting portal Interbet...
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