RE:EBITDA WATCHsolarman2013 wrote: If last year the combined companies created $900M of EBITDA, then is $1.2B out of the question in the question in 2018? taking a 12X Valuation (less than what stars paid for all three new entities) as the fair multiple, puts it right over $100cad within the year. If that plays out, and assume that 2020 is the first substantial year in US sports betting, are we now looking beyond $100 in a three year window to closer to $150-200?
Nice dream chearleader.
Now lets back to reality, they paid a hefty price for Skysports, they paid 12X some fictional price which already included 150mil of synergies already priced in. Amaya was desperate because Rafi was pushed to maintain growth or the appearance of growth.
Amaya was in talks with Sky long before Rafi was at the helm and could have bought it for around 60% of that price a couple of years ago.
6-7 billion in debt service payments not reflected in EBITDA but you can damn be sure it affects SP. Right now the debt service is manageable from Stars cash flow but future cash flow is highly dependant on interest rates now and in future.
A little balance to your thinking is warranted.