Nigerian Sports Lottery (NSL)

[riskreturn]

Originally Posted by hispy99

Is this supposed to encourage me to participate in the kalokalo biz? But wait, if there are feelers that the offer will be oversubscribed, why should I participate and go through the hassle of returned money?

NSL's N12b offer may be oversubscribed, say operators
By Gbenga Agbana

DESPITE the lull currently being experienced in the secondary market segment of the capital market, investors have sustained their interest in the on-going initial public offering of the recently listed National Sports Lottery Plc (NSL). The offer suspended recently is still on.

The company is currently offering for public subscription 800 million ordinary shares of 50 kobo each at N15.50 per share between Monday, July 14 2008 and Wednesday August 20, 2008.

Feeders from receiving agents revealed that investors are leveraging on the company's result currently released, which was a major improvement over the half year result of 2007.

Besides, investors are said to be diversifying their portfolios since they have leveraged on capital appreciation enjoyed on the banking and insurance stocks post-consolidation.

Smarting from an operational loss of N238 million in the six months ended June 30, 2007, the company recorded an after tax profit of N2.6 billion in the same period ended June 30, 2008, on a gross income, which rose from N79 million in 2007 to N3.5 billion in 2008.

Shareholders' funds rose from N471 million in 2007 to N2.6 billion in 2008, while cash equivalent rose from N679 million to N1.67 billion. Fixed assets also grew from N77 million to N950 million. Unpaid interim dividends for 2008 stood at N580 million.

In a note attached to the result, the company explained that diversification of its revenue base has resulted in a very strong and successful business strategy.

While reassuring investors on the second half of the year's performance, the company said: "Barring all unforeseen circumstances, the company is in line to achieving its forecast for the year ended December 31, 2008, considering the re-launch of the National lottery, and its strong partnership with LAGTECH, a Lagos lottery based outfit, and selling of airtime vouchers over the network of 20,000 terminals."

Comparing actuals with forecasts showed that the first six month's profit before tax of N2.556 billion is 52 per cent of the N4.95 billion one year forecast, while profit after tax of N2.556 billion is 68 per cent of the N3.74 billion one year forecast.

The proceeds of the offer according to the prospectus would enable the company become a platform for the convergence of lottery and electronic transaction processing (including credit/debit card payments, electronic air time vending, bill payments and funds transfers.

The company at this moment boasts of over 20,000 merchants/agents acquired nationwide and has all GSM networks airtime on its terminals as well as Starcoms. The airtime industry boasts of over N700 billion/annum, while the lottery industry is over N70 billion /annum, and the estimated POS payment industry is about N1 trillion. Indeed NSL Plc with its very high quality infrastructure with switching from Valucard/Visa is positioned to continue to be a buy stock beyond IPO. One of its 100 per cent owned subsidiary, Paytech has just recently been appointed by Valucard as an independent VisaCard marketing company.

I very much doubt if the public offer price would be a good deal, not withstanding the recently released seemingly encouraging results. In general, any offer price determined during the maximum bull phase of of the secondary market is unlikely to be low-priced under the present bear condition in the market. Those who advise on offer terms are normally guided by the prevailing secondary market prices - which were over-bloated vis-a-vis the current situation. The recently released result, even if it suggests a forward P/E ratio of 1, should be taken with a pinch of salt. They may just be taking after Access Bank which released a mouth-watering Q1 when it was about to start its PO. We are now witnessing the after effect, particularly when Q1 of the following financial year was released recently.

Nevertheless, those with the offer prospectus may wish to post it on this site, if only for an academic exercise.

[fredski]

Originally Posted by Michael

Is Kalokalo also an Investment. Who is gambling now the shareholders or the customers.

In the Kingdom of the blind....
Hey can someone please say something nice about these guys???

[zubychyle]

Originally Posted by Michael

Is Kalokalo also an Investment. Who is gambling now the shareholders or the customers.

there is an investment oppurtunity everywhere, it's for the discerning investor to see the oppurtunities and make the right decision.
NSL is not a bad business concept in anyway unless they have a bad management.

[fredski]

Originally Posted by zubychyle

there is an investment oppurtunity everywhere, it's for the discerning investor to see the oppurtunities and make the right decision.
NSL is not a bad business concept in anyway unless they have a bad management.

I agree with you here however in my opinion, anything public offer is VERY BAD BUSINESS for the investor.
I am also yet to see any good publicity of this firm....

This one is a handsoff

[hispy99]

Originally Posted by Apache

Please, does anyone have the soft copy of the prospectus for the NSL public offer. I jsut want it for reference purpose.

http://www.nationalsportslottery.com...pectus_NSL.pdf

[hispy99]

NSL boosts payment system with 30,000 POS terminals
By Agency reporter
Published: Wednesday, 6 Aug 2008
Nigerians will soon heave a sigh of relief as the National Sports Lottery, in conjunction with its partners; plan to deploy additional 30,000 units of Ingenico i8550 multi-application Point of Sales terminals into the financial sector.

In a statement made available in Lagos on Tuesday, NSL disclosed that arrangements were in top gear by it and its partners – Ingenico and Valucard/Visa, to deploy the terminals in the second phase of deployment, following the successful introduction of 20,000 units in the first phase.

The statement, signed by Nneka Ngerem, the firm’s Head of Brand Management Group, allayed the fears of the people over electronic payment system in Nigeria, saying the initiative was meant to revolutionise the payment system in the country.

VISA is the largest card payment company in the world today with over 20,000 member-banks spread across the various continents.

Similarly, Ingenico, the world’s biggest and leading maker of secure terminals, boasts of over 55 per cent of the global market share.

Ingenico has over 15 million functioning payment terminals accepting payments from most cardholders in different countries.

With this partnership, Ngerem assured Nigerians that any payment made through the NSL POS terminals would be in safe hands.

She explained that the deployment was expected to leapfrog Nigeria into the committee of nations that embraced electronic means of payment.

The terminals, according to her, will be made accessible to Nigerians through various outlets in neighborhood stores, local markets, supermarkets and any outlets where business is transacted.

Ngerem also enjoined telephone subscribers to embrace the terminals when they want to recharge their phones; as all the notable networks had been connected to the POS terminals.

[Apache]

Originally Posted by hispy99

http://www.nationalsportslottery.com...pectus_NSL.pdf

Thanks! you are the man

[riskreturn]

Originally Posted by hispy99

http://www.nationalsportslottery.com...pectus_NSL.pdf

But it looks as if the public offer price is not too bad (though still not fantastic), even for this bear market, provided they would attain the end-2009 and end-2010 projections of P/E ratios of around 9 and 6 times respectively.

[Symeon]

Originally Posted by newton

So guys wat do u think abt d listing of National Sports Lottery. To be frank I think the lottery companies in the country are dead but just maybe i'am wrong or a lil 2 pessimistic.

Dont waste your money on these NSL crooks!

[hispy99]

Looks like this offer is under-subscribed...I pity the underwriters


NSL extends closing date for its N12.4 billion offer
By Gbenga Agbana

TO accommodate investors, the on-going Initial Public Offering (IPO) of National Sports Lottery Plc (NSL), earlier scheduled to close formally on August 20, 2008, has been extended to August 29, 2008.

The extension according to the Managing Director Mr. Odunlami Kola-Daisi was due to the loss of seven days of the offer period to series of publications in the Newspapers, which has been comprehensively resolved.

He added that the extension could allow other prospective investors to participate in the IPO, which is still open till August 29, 2008 and enjoy the returns on investment when the new shares are eventually listed on the Nigeria Stock Exchange.

Despite the lull currently being experienced in the secondary market segment of the capital market, investors have sustained their interest in the ongoing offer.

The company is currently offering for public subscription, 800 million ordinary shares of 50 kobo each at N15.50 per share between Monday July 14, 2008 and Wednesday August 20, 2008.

Feeders from receiving agents revealed that investors are leveraging on the company's result currently released, which was a major improvement over that half-year result of 2007.

Besides, investors are said to be diversifying their portfolios since they have leveraged on capital appreciation enjoyed on the banking and insurance stocks post-consolidation.

Smarting from an operational loss of N238 million in the six months ended June 30, 2007, the company recorded an after tax profit of N2.6 billion in the same period ended June 30, 2008, on a gross income, which rose from N79 million in 2007 to N3.5 billion in 2008.

Shareholders' funds rose from N471 million in 2007 to N2.6 billion in 2008, while cash and cash equivalent rose from N678 million to N1.67 billion. Fixed assets also grew from N77 million to N950 million. Unpaid interim dividends for 2008 stood at N580 million.

In a note attached to the result, the company explained that diversification of its revenue base has resulted in a very strong and successful business strategy.

While reassuring investors on the second half of the year's performance, the company said: "Barring all unforseen circumstances, the company is in line to achieving its forecast for the year ended December 31, 2008, considering the re-launch of the National Lottery, and its strong partnership with LAGTECH, a Lagos Lottery based outfit, and selling of airtime vouchers over the network of 20,000 terminals."

Comparing actuals with forecasts showed that the first six month's profit before tax of N2.556 billion is 52 per cent, or half way time of the N4.95 billion forecast for year end, while profit after tax of N2.556 billion is 68 per cent of the N3.74 billion one year forecast.

The proceeds of the offer according to the prospectus would enable the company become a platform for the convergence of lottery and electronic transaction processing (including credit/debit card payments, electronic air time vending, bill payments and funds transfers.

[hispy99]

National Sports Lottery Was Taken Off Technical Suspension Today Following The Conclusion Of Its Offer For Subscription

[hispy99]

Latest Market Info
NSLTECH: 3RD QTR OCT 2008
NATIONAL SPORTS LOTTERY PLC, PERIOD 30-10-2008 (3RD QUARTER)

TURNOVER 08 N94.450m, 07 N80.331m

PBTAXATION 08 N1.706b, 07 (N387.781m)

TAXATION 07 N4.922m

PATAXATION 08 N1.706b, 07 (N392.703m)

BALANCE SHEET INFORMATION

FIXED ASSETS 08 N1.683b, 07 N77.432m

TRADE DEBTORS 08 N6.527b, 07 N679.269m

CASH & BANK BALANCES 08 N302.513m, 07 N679.269m OTHER DEBIT BALANCES 08 N135.345m, 07 N994,000

TRADE CREDITS 08 (N4.291b) 07 (N59.513m) OTHER CREDIT BALANCES 08(N2.836b) 07 (N2.257b) WORKING CAPITAL 08 N163.320m,07 N548.888m NET ASSETS 08 N1.519b, 07 (N471.456m)

[madeonline]

NSLtech released a superlative result today:

DATE RELEASED: 24/10/2008
NSLTECH PLC
UNAUDITED Q3 RESULT FOR THE PERIOD ENDED 30TH SEPT., 2008.
PERIOD 2008 2007 % CHANGE
TURNOVER (N'b) 3.52 0.12 2861.34%
PBT (N'b) 1.71 -0.39 539.69%
PAT (N'b) 1.71 -0.39 534.10%

[X-2-X]

Can someone kindly explain how/why '07 Turnover is less than PAT/PBT? I dont understand pls.

Cheers.

[hispy99]

Originally Posted by X-2-X

Can someone kindly explain how/why '07 Turnover is less than PAT/PBT? I dont understand pls.

Cheers.

Check the numbers again...they declared a loss in 2007 (-N0.39B)