Perform IPO delayed by German changes

The announcement of a new liberalised gambling policy in Germany has claimed an early casualty as the digital sports media company Perform Group delayed its initial public offering until later this week.
The company says the postponement is necessary for it to brief investors on how the German changes will impact the group.
Final pricing and allocations for the GBP 175 million share offer are expected to be made later today (Thursday), an source told the Dow Jones news agency, with trading to start Friday on the London Stock Exchange.
Perform Group is to tell investors that Germany’s plan to tax sports betting from 2012 and ban in-game wagering won’t affect short- to medium-term contracted revenue. The liberalisation of online betting is generally regarded as a positive development for Perform, as it will allow betting operators to market their products legally and grow their user bases, potentially giving the company more business.
In an early reaction to the German developments, however Bwin.party digital said that the high tax proposed and restrictive conditions could mean operators would struggle to prosper or effectively perform in a competitive environment
Perform’s two main sources of revenue are from distributing sports content to bet makers and online media across the world, and revenue from ads running within content on its own and others’ websites.
The company’s current owners are industrial holding company Access Industries and Perform Group managers, who are selling down some of their existing shares. About GBP 70 million in new capital is being raised.

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