Phumelela Gaming & Leisure Limited. JSE: PHM

Phumelela Gaming shares

Background of Phumelela

  • Phumelela Gaming & Leisure is a South African horseracing betting and tote betting company operating in Gauteng, the Western Cape, KwaZulu-Natal, the Free State, the Eastern Cape and Northern Cape, whilst also operating tote betting in Limpopo, Mpumalanga and the North West.

  • The group has a history stretching back to 1997, coinciding with the corporatisation and restructuring of the horseracing system in Gauteng. Phumelela shares were first listed on the Johannesburg Stock Exchange (JSE) in 2002 in order to facilitate this corporatisation. Horseracing in other provinces subsequently joined the process under Phumelela. Today, the group also has an international division, Phumelela International, which enables the export of live South African horse racing to 41 international jurisdictions across six continents. Phumelela also owns an international tote operation on the Isle of Man through a partnership with Australian counterpart Tapcorp.

  • The group’s main shareholder (35%) is the Thoroughbred Horseracing Trust, a non-profit entity promoting the interests of all persons involved with the sport in South Africa, formed at the behest of the Gauteng Provincial Government.

  • Phumelela shares are for sale under the Gaming sector of the JSE with a market cap of R1.77 billion. Phumelela share price has recorded strong rises on the live online JSE stocks chart in recent years.

Phumelela Shares Growth Driver

  • Phumelela’s latest financial data, covering the six months ended January 2016, highlighted an impressive overall performance by the company. Income from local operations increased by 18% to R659.7 million, while international operations increased income by 29% to R126.7 million. Profit for the period stood at R65 million, a 30% increase from the previous year and already a significant proportion of the R79.5 million recorded in the entire 2015 financial year. Shareholders enjoyed headline earnings per share increases of 33%, as well as significant dividends increases.

  • In South Africa, fixed odds operations delivered significantly increased profits, with growth in betting income on horse racing, other sports and numbers betting. Money wagered on fixed odds increased by 46%.

  • Increased operating expenses were reflected due to Phumelela’s drive to buy in to an expanded retail footprint, share-based payment charges, incentive bonus payments and legal and consulting fees associated with combating piracy of the group’s intellectual property. A recent 26% investment in Interbet has also boosted income, whilst other investments in Supabets and Afribet are forecast to contribute to profits going forward.

Phumelela Group Investor Tip

  • As AB InBev continues to dominate its existing markets and buy into emerging markets, the forecast looks good for the brewer and its investors. The live online stocks chart shows that AB InBev share price has recorded steady growth, with the share barely dipping once over the past five years.

Phumelela Major Shareholders

The Thoroughbred Horse Racing Trust, B Kantor, Gride Investments, Sanlam Investment Management, Dihla Investment Holdings, Yerranzano Property Investments.

  • Sector

    Consumer Discretionary

  • Industry

    Gaming, Lodging & Restaurants

  • Sub industry

    Casinos & Gaming

How to buy Phumelela Group Shares

  • Phumelela : How to buy Phumelela Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Phumelela Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Phumelela Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Phumelela Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Phumelela Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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