TheChek News Flow

There seems no end to Pokémon Go mania as App Annie notes that the app has now hit 100M downloads and is still earning a cool $10M a day some three weeks after launch.

Apple had previously said that the app had set a new record for launch week downloads, but had not revealed the number – though one analyst estimated that the game could be worth as much as $3B to Apple over a 1-2 year timeframe. Interestingly, that success doesn’t appear to be at the expense of other games, as overall revenues across all games saw dropped only briefly.

Pokémon Go has not had a sustained and meaningful impact on the daily revenue of other games on iOS and Google Play. Daily revenue for Games other than Pokémon GO did see a brief dip in the US shortly after the game’s launch, but quickly climbed back to previous levels in a few days.

Indeed, the analytics company believes that the popularity of the game represents an opportunity for other developers as it has popularized the concept of augmented reality and demonstrated to businesses the value of sponsorships …

Game developers could make a limited amount of in-game items (or virtual currency) available at specific retail stores or local businesses who in turn would pay for the increased foot traffic. This could help mobile game publishers monetize a much larger percentage of their user base and create an entirely new revenue stream.

Some players were disappointed when Niantic shut down third-party services like PokeVision, and the company has now explained the reason for this.

We have limited access by third-party services which were interfering with our ability to maintain quality of service for our users and to bring Pokémon GO to users around the world. The large number of users has made the roll-out of Pokémon GO around the world an… interesting… challenge.

The company also said that it is working hard to bring the game to other countries, giving a specific mention to Brazil.

The block on third-party services isn’t preventing all unofficial access to the game, however, as one Tesla hacker demonstrated …

Gapping down
In reaction to disappointing earnings/guidance: BCEI -29.1%, (also plans to suspend asset sale process; elects not to make interest payment on 5.75% Senior Unsecured Note), IDTI -17.1%, RAIL -11.8%, IQNT -11.4%, TXRH -10.7%, TTOO-9.8%, ALLT -5.7%, EIGI -5.6%, BGSF -5.5%, QUAD -4.9%, CIE -4.4%, EMR -3.9%, EMR -3.9%, MZOR -3.8%, FTR -3.7%,MLM -3.2%, THC -3.1%, ADM -2.8%, MOS -2.4%, CGEN -1.6%, PFE -1.5%, APTS -1.2%, H -1%, ATKR -0.5%

Select EU financial names showing weakness in sympathy with DB and CS: SAN -3.9%, ING -3.6%, BBVA -3.2%, LYG-0.4%

Other news:

Analyst comments:

Gapping up
In reaction to strong earnings/guidance: HBP +19%, CGNX +14.7%, AMKR +14%, SODA +12.6%, NLS +11.7%, AVP+9.9%, CARB +9%, VECO +6.9%, MNK +6.9%, GKOS +6.4%, SALE +6.4%, RYAM +6.2%, AEIS +5.5%, BIOC +5.3%,WMB +4.3%, TSE +4.1%, SHPG +4%, WPZ +3.8%, IDXX +3.8%, XOXO +3.7%, PLOW +3.7%, TNET +3%, ATW +3%,CHGG +2.9%, AVGR +2.4%, OMEX +2.4%, (thinly traded), GAIN +2.3%, HMC +2.2%, WNR +2.2%, ABC +2%, WCG+2%, DNB +1.9%, IPI +1.8%, DAC +1.7%, CVS +1.6%, ETR +1.5%, NRZ +1.5%, AET +1.4%, ENOC +1.4%, STX+1.4%, PG +1.2%, VGZ +1.2%, PRSC +1.1%, SBRA +1%, TST +0.9%, DISCA +0.9%

M&A news:

Other news:

Analyst comments:

Tullett Prebon will look to hire more teams of brokers that trade over the phone even as it closes in on its transformative deal to buy the global broking business of rival ICAP.

The all-share deal worth about £1.1bn hit a snag in July when British antitrust authorities said the combination could create a dominant position in oil trading.

ICAP is set to announce the sale later today of its oil broking team to offset the concerns, according to two people familiar with the situation. ICAP declined to comment. It came as Tullett said energy market volatility had boosted interim earnings. Its shares rose 0.8 per cent in morning trade in London.

Approval by the UK would smooth the way for Tullett to surpass US-based BGC Partners and become the world’s largest hybrid voice and electronic interdealer broker by market share. It would dominate an over-the-counter market where brokers help move illiquid and large deals in foreign exchange, commodities, energy and fixed income between counterparties. US and Singaporean authorities have passed the deal. The oil trading business that ICAP will sell generates about £20m in revenues.

“It looks like we’re going to avoid a lengthy investigation, but it wasn’t our intention to divest anything. It’s a relatively modest requirement in the big scheme of things but we’ll take it and move on,” said John Phizackerley, chief executive of Tullett Prebon. “We still have ambitions in energy . . . results showed energy was one of the standout performers.”

Mr Phizackerley said he would be “grazing” the industry for more specialised teams, exemplified in its purchase last week of 14 brokers at Creditex, a US credit derivatives trading business, from Intercontinental Exchange.

“Creditex is significant in that if all we did was integrate ICAP over the next three years, we’d wake up and find out that the world had moved on. Integrating ICAP is the number one priority but we continue to look out for high touch businesses,” he added.

For the six months to June 30, revenues at Tullett rose 4 per cent to £430.3m. Earnings were boosted by data sales and a stronger performance in energy, commodity and equity products. Pre-tax profit rose from £52.9m to £60.3m as it also cut the amount of revenue it paid to its brokers.

Tullett also announced it was setting up a new technology centre in Belfast to focus on development and technical support. It will save the company about £5m a year on technology costs and the figure might double with the integration of the ICAP business. It would be on top of the £60m savings Tullett has targeted from the ICAP deal.

Tullett also said it was too early to speculate on the long-term impact of the UK’s decision to leave the European Union but it has benefited recently from increased levels of market volatility.