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This is a guest contribution byfounder of Gaming in Holland and Stefan Vermeulen works as a journalist for several mostly financial media.
If you would like to submit a contribution please contact holland casino annual report 2020 submission details.
The intended privatization of land-based casino chain Holland Casino has taken a decisive step forward.
Last week, the Dutch government sent a bill to Parliament containing a proposal to sell the state-controlled casinos.
A deal will probably be concluded by late 2017.
But how much can holland casino annual report 2020 Dutch State expect to get for Holland Casino?
Political background Back in 2012, the new government coalition consisting of right-liberals VVD and social democrats PvdA decided the Dutch State no longer needed to keep its monopoly on running casinos.
In their coalition agreement, VVD and PvdA agreed that Holland Casino would be privatized within a few years.
Although politicians of both parties felt that gambling should remain strictly regulated on account of risks of addiction and fraud, this would no longer mean that Holland Casino would have to continue as a state-owned company.
Even after privatization, risks associated with gambling could be controlled by giving holland casino annual report 2020 gambling licenses on very strict conditions, and by having a tough supervising authority.
Initial setback The Dutch government initially intended to sell Holland Casino and privatize the Dutch casino market as early as 2017.
These plans, however, suffered a major setback when Holland Casino posted alarming losses in 2012 and 2013.
In 2012, Holland Casino posted a loss of 0.
According to some experts, this made the Dutch casino chain one of the few loss-generating gambling enterprises in the world.
To the Dutch government this meant that the return on the sale of would likely be much lower than anticipated.
Rising profitability But now the situation has changed.
Profits are rising: 12 million euros in 2014, 67 million in 2015.
Because Holland Casino is expected to land a license to operate in the soon-to-be-regulatedprofitability might grow even further.
How much is Holland Casino worth?
But what will the Dutch get for their national casino company?
To answer that question, we first have to look at the EBITDA multiplier that potential buyers will use to determine their offer.
Some industry experts argue a would be reasonable.
On average, over the last three years holland casino annual report 2020 Holland Casino posted an EBITDA of 65 million euros, which would mean that Holland Casino could be worth around 650 million euros.
But that estimate could very well be too low.
The average EBITDA of Holland Casino over these last three years is to a large degree negatively impacted by the bad results in 2013.
Particularly in the fast-changing gaming industry, potential buyers tend to focus on the current and future operating results and profitability.
According to one industry expert, even that estimate could be conservative.
If the earnings are going upwards each year, using a multiplier of 10 times EBITDA seems pretty fair.
But you also have to look at which proportion of EBITDA falls through to net income — it could deserve a premium.
With 105 holland casino annual report 2020 euros EBITDA in 2015, net operating profit turned out to be over 67 million euros — a very healthy amount by any standards.
Most of this profit — 40 million euros — was used to strengthen the company equity.
This expert suggests the sale price deposit slots 2020 no inferno very well turn out to be over 1 billion euros.
Why Holland Casino could end up being cheaper Another Dutch industry insider, however, pointed out that after privatization Holland Casino will have to pay corporate tax, rated at 25 percent, just like every other private company.
Currently, as a state-owned company, Holland Casino does not https://fukiya.info/2020/dreams-casino-reviews-2020.html corporate tax.
This will probably push the sale price down a bit.
Furthermore, multipliers for casino sales in Europe are generally lower than in the United States.
Past sales in Europe, but also in Canada, reached only single digit EBITDA multipliers.
Or maybe even a bit higher indeed, because after speaking to several industry insiders, one thing seems clear: there appear to be quite a few parties interested to buy.
Out of the fourteen casino licenses currently owned by Holland Casino, ten will be sold to one party, while the four remaining licenses will be sold to other buyers.
In addition, two new licenses will be issued.
Austria-based Novomatic, which is currently attempting to acquire Australian poker empire Ainsworth for 500 million dollars, is mentioned as one of the top takeover candidates.
Other parties mentioned are the British Rank Group and Aspers Casino.
Of course, when the auction turns into a takeover battle, the price for Holland Casino will go up.
What is the Dutch State looking to get out of it?
Also, every buyer will have its own strategic considerations with regard to how much they are willing to pay.
Do you want to know more?
Stefan Vermeulen works as a journalist for several mostly financial media.
Also on twitter: stefanverm For more information, please contact Gaming Consultantfounder ofthe leading iGaming community in the Netherlands.
The sale of Holland Casino will also be a major topic of discussion at the upcoming.
See you in Amsterdam on June 7-8?
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