Stanleybet Capital lists its first issue of corporate bonds on the stock exchange

2/4/2022

Stanleybet Capital, a holding company that integrates and coordinates a network of sports betting agencies and slot machines, gambling halls and online gambling platforms, debuted today at the Bucharest Stock Exchange with its first issue of bonds worth RON 20 mn. The bonds are traded on the Multilateral Trading System under the stock ticker SBET24. Recognized for the Stanleybet and Game World brands, Stanleybet Capital will use the funds raised from the capital market to develop the online gaming platform and mobile applications, to digitize and modernize sports betting agencies and slot machines, and to expand the number of units in Stanleybet agency network.

‘Bucharest Stock Exchange offers financing mechanisms for entrepreneurs from all fields of activity, including gambling. We want to be a more accurate picture of the Romanian economy and from this perspective we are glad that Stanleybet Capital has chosen to be financed through the local capital market, said Radu Hanga, Bucharest Stock Exchange President.

‘With the funds raised, we want to offer to the player a premium experience, which we will obtain by optimizing the betting platform, implementing mobile applications, digitizing the agencies, but also by expanding the current network. We want to build an integrated online and offline business through an omnichannel solution that ensures an unified customer experience both in the onsite agencies and on the online betting platforms. Over the next three years, we expect accelerated business growth’, said Csaba Tanko, President and CEO of Stanleybet Capital.

Stanleybet Capital sold 200,000 unsubordinated, non-convertible and unsecured corporate bonds in a private placement in early August 2021 to 127 investors. The bonds have a nominal value of RON 100, with a maturity date in August 10, 2024, and a coupon of 10% p.a., with semi-annual payment. The private placement and the bonds listing were carried out with Goldring’s support.

Stanleybet Capital brings among the debt instruments tradable on BVB a bond issue that has proved attractive to investors even if, at the time of investment, the pandemic generated significant risks for the issuer's sector. Now that this threat is easing and geopolitical and macroeconomic dynamics are creating new risks for the capital market, Stanleybet bonds offer a welcome alternative for those investors who are looking for high-yield but moderate-risk investment opportunities in more resilient, less volatile sectors, sensitive and vulnerable to developments in the external environment, sectors where Stanleybet Capital is present through the Stanleybet and Game World brands. We wish them that the recent dynamics at the level of individual and consolidated performance indicators to be confirmed and Stanleybet Capital to return to the local capital market for new financing rounds, says Virgil Zahan, CEO of Goldring.

Stanleybet Capital is a holding company established in 2020. The company currently operates three lines of business: slot machines and electronic roulette game rooms, sports betting and slot machines gambling, and also the online component. To date, the issuer has integrated into its structure five companies operating the network of approximately 300 sports betting agencies and slot machines under the Stanleybet brand, the chain of eight premium Game World gaming halls with a total of approximately 700 gaming stations and online sports betting and gambling division.

The chain of premium gambling halls registered a turnover of over RON 62 mn in the first half of 2021. The sports betting business line operates a network of 288 agencies in Bucharest and in other 70 cities in Romania. The turnover on this line of business exceeded RON 175 mn in 2019 and registered in 2020 a decrease due to the pandemic of up to RON 106 mn. For the third line of business, namely the online component of sports betting and casino games, the company recorded revenues of RON 25 mn and a net profit of RON 850,000 in the first half of 2021.