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Gaming Innovation Group Publishes Strong Q3 Results

Malta based Gaming Innovation Group has published its Q3 results, showing a continued strong growth in both performance and revenues.

The company’s Q3 results brought €14.5 million in the third quarter, meaning that it saw an increase of 201% from the same period last year.

With this in mind, the report also noted that the group expects to exceed the guided 100% organic growth for full year revenues, and that revenues will exceed €120 million next year.

One of the factors contributing to the strong results throughout 2016 was the acquisition of Betit Holdings, which added a total of three brands to the company’s B2C gaming operations – Kaboo.com, SuperLenny, and Thrills – which expanded its presence in the lucrative Nordic market considerably.

This acquisition is relatively recent, having been announced in late June for a fee in the region of €54 million.

The Gaming Innovation Group report also detailed that its casino brands – Guts.com, Rizk.com, and Betspin – have continued to perform well, whilst other sectors of the business saw similar successes, including the growth of the affiliate business in Innovation Labs through an expanded customer base.

In addition, the company’s operators saw an increase in active users from 81,645 in the 2nd quarter to a total of 177,587 in the 3rd quarter. Of course, Betit was a significant part of this, though there would still have been an impressive increase of 95,401 without the acquisition.

Gaming Cloud (iGC) also signed two new clients during the quarter, bringing its total to 18. Another announcement included in the report was that the company will be “undergoing an organisational change”, following this period of strong growth.

Gaming Innovation Group will also be exhibiting at Malta’s biggest upcoming gaming event of the year this month. If you’re interested in joining SiGMA16 between the 16th and 19th of November, click here to register.

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Mr Green Enjoys Revenue and Customer Number Increase in Q3 Report

Online gambling company Mr Green has released its interim report for the third quarter, reporting an increase in total revenue of 14% to SEK 229.9m.

Detailing factors behind the rise, the online operator noted the impact of a “broadened product range, a growing number of customers, and a stronger market position outside the Nordic region.”

Revenue generated by mobile products during the July-September period contributed to 43.3% of the total.

Compared to the previous quarter, EBIDTA before non-recurring items dropped by 57.5% to SEK 17.4m.

Mr Green attributed this decline to higher local betting duties and increased marketing costs.

The number of active customers grew by 39% to 102,429, while customer deposits hit an all-time high, climbing by 21% to SEK 687.2m.

CEO Per Norman commented: “During the period we continued to work intensively on implementing our new business strategy, which we call Mr Green 2.0.

“The business strategy is built on five cornerstones: brand, user experience, product offering, geographical expansion and being the leading player in Green Gaming (responsible gaming).

He went on to say: “I am happy and proud of what our organisation has achieved in such a short space of time and look forward to our journey of change towards continued growth and increased profitability.”

Mr Green will also be showcasing at SiGMA16 – Malta’s biggest upcoming gaming event. If you’re interested in joining this iGaming summit in November, click here to register today.

NetEnt Posts Boosted Q3 Revenue & Profits Report

Stockholm-listed industry games developer NetEnt AB has published its Q3 2016 trading period, reporting a further consecutive quarter of top-line growth on all metrics.

Closing the Q3 period ending 30th September, NetEnt recorded a corporate revenue increase of 27.7% to SEK 357.4 million, compared to SEK 279.8 million in the same period last year. Its strong revenue performance achieved operating profits of SEK 129 million (€13.3 million), and profits after tax of SEK 119 million (€12.2 million).

Detailing performance drivers, NetEnt governance pointed to the firm’s strong commercial pipeline which had seen 11 new customer agreements signed during the period – including UK gambling operator Rank Group Plc.

Updating investors on its year-to-date performance, NetEnt governance is confident to reach all corporate expectations as the company hits a yearly operating profit of SEK 380 million (€39 million).

Governance detailed that the company will continue its focus on expanding its services within regulated European markets. It also stated that it will support its strategy by “increasing the number of employees” and adding further resources to the development of its platforms.

Commenting on corporate performance, President and CEO of NetEnt, Per Eriksson, said: “NetEnt’s growth strategy keeps delivering results – we grow in new markets, with new products and with more customers. During the quarter, we launched our games in the regulated market in Romania and we rolled out our live casino product for mobile.”

“The UK continues to be an important growth driver but the weaker pound had an estimated negative effect of about three percentage points on revenue growth compared to the same quarter last year. Our ambition to achieve continued strong sales growth in 2016 remains.”

NetEnt will also be showcasing at Malta’s upcoming gaming event of the year, SiGMA16. If you’re interested in joining this iGaming summit in November, click here to register.

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Olympic Entertainment Group forecast 21% increase in Revenue

Thanks to the expansion of its markets in Estonia, Lithuania and Latvia, Casino and Online gambling operator Olympic Entertainment Group (OEG) has experienced a revenue rise of more than one-fifth this Q3 2016 (Q3 period of the last three months ending September 30)

The Tallin-listed operator released their unaudited figures where the OEG governance reports an overall rise of 21% to €45 million this Q3. The Estonian market proved to be the biggest gains rising 20.2% to €10.1m while the Latvian market contributed to the overall amount earning €15.6m, a 16% increase.

Apart from Poland, who experienced -9.5% in figures, and Belarus where there was zero contribution to the overall figure, the operator having to withdraw from Belarus this September citing ‘poor market conditions and declining prospects for its business growth’, the gambling operator has reported growth across all other key markets.

The new €45m Hilton Tallin Park which opened in June of this year aided in OEG Estonian business contribution to the quarter’s figures being the first Hilton to open in the Baltic region and boasting of what OEG calls its new flagship gaming venue, the Olympic Park Casino.

EG governance issued a shareholder notice on the 10th October disclosing that the company would be paying a dividend 0.05 EUR per share on 14th October 2016.

The unaudited results of OEG see their year-to-date revenue at €131.5 million, an increase of 16% from the same point last year.

Online Betting estimated to reach One Trillion dollars by 2021

According to analyst Juniper Research in a whitepaper published this week, the gambling industry performance is expected to reach $1,000,000,000,000 (One Trillion Dollars) per year in bets by 2021. This rise is due to the increased power of mobile technology geared to build customer engagement with the use of media and live streams, said the paper. This surge represents a 42% increase on the $550 billion that is expected this year.

The paper states that “wager levels will thus approach total spend on all digital goods and services by [2021], forecast to exceed $1 trillion for the first time [in 2021].”

The paper’s author, Lauren Foye reported that drawing in return business relies on the user engagement which goes a long way.
“Providing features such as news and media on favourite teams, as well as personalised offerings based on past betting activity, enables greater engagement and is likely to reduce churn.”

The Virtual Reality Casino World

Foye also argued that virtual reality will also have a play in increasing customer engagement especially in the online casino vertical. The high-end virtual reality speed of adoption which allows players the opportunity to explore virtual casino spaces and to gamble on real money casino games was something that the experts were still divided on.

Slots Million, the online casino became the first operator to launch a full blown real-money VR experience late last year. This launch announced the arrival of the real-money virtual reality casino gaming.

At the moment however VR is still a step ahead of the market as the VR experience requires an investment of around $1,500 with the price of headsets ranging around $300, and the high-spec PCs needed to deliver the VR experience well around $1,200. These steep prices are at the moment a hindrance in the adoption of VR for mass marketing.

In the beginning, this new format of VR will have their niche clientele, however, the report predicts these participants to wager substantial amounts on real world ‘casino-style’ VR gambling products.

The future of Bitcoin

The adoption of VR is eventually expected to reach mass market adoption, unfortunately, the paper did not predict the same outcome in the gambling sector for Bitcoin and other digital currencies. “Whilst a number of leading sportsbook providers, including William Hill and 888 now offer Bitcoin, Juniper believes that the cryptocurrency is unlikely to see mass-adoption, even in the gambling space,” quoted the report.
The reasons behind this included the technical complexity of it and increased regulation around the globe. This included the extreme incompatibility of digital currencies with anti-money laundering directives.

888 Holdings Hits Incredible Record Revenues for H1 2016

The governance of one of the world’s most popular online gaming operators and platform providers, 888 Holdings, has officially declared a record revenue performance driven by “outstanding casino and sports growth”.

Compared to H1 2015’s $220 million, the operator posted group revenues of $262 million, up 19%. Despite being affected by adverse currency movements of around $3 million, the firm’s record-breaking performance translates to a period EBIDTA of $38 million, compared to the $28 million in the same period last year.

Strong top-line metric growth sees the firm report H1 group profits of $27.8 million, up 39% when compared to last year’s $20 million.

The company recorded growth throughout all its core divisions, highlighting the strong performance of its casino product with active players in the 2nd quarter of 2016 up 35% year-on-year, driven by innovative CRM and premium content.

888 Holdings governance was pleased with the progress of its sports betting division which had hit period revenues of $25 million, boosted by the success of the Euro 2016 marketing campaigns.

CEO of 888 Holdings Itai Frieberger commented on the H1 2016 performance, saying that: “888 has delivered a very encouraging performance in H1 2016, resulting in a 19% increase in Group revenue to a record $262.0 million. This strong outcome was driven by outstanding momentum at 888Casino and 888Sport where we achieved impressive revenue increases of 31% and 63% respectively.

“In line with our strategic focus we have made further excellent progress developing 888 in regulated markets and have grown regulated revenue by 29% against the prior year, reflecting strong performances in the UK, Spain and Italy as well as 888’s recent successful launch in Denmark.”

“888’s continued success is built on our first class technology and core expertise in CRM, marketing and analytics. These strengths, along with the fantastic efforts of our highly skilled and dynamic team, mean that the business is in excellent shape to deliver long term sustainable growth.

Trading in Q3 has started well with average daily revenue until 27 August 2016 15 per cent. above strong previous year comparatives and 22 per cent. higher on a like for like basis. With this strong momentum the Board remains confident of delivering against expectations for the full year.”

888 Holdings will also be showcasing at Malta’s biggest gaming event of the year, SiGMA16. If you are interested in watching 888 and the other exhibitors at this iGaming summit in November, click here to register today.

Ladbrokes Publishes H1 2016 Profits Showing Accelerated Growth

Ladbrokes Plc governance has published this year’s H1 results, stating that its ongoing corporate strategy has seen it deliver an “accelerated multi-channel” growth on all core metrics.

The bookmaker would close H1 ending 30th June 2016, recording group revenues of £661 million with an increase of 13% compared to the £585 million from same period last year.

Reversing its H1 2015 losses of -£37 million, the revenue uplift would see the operator post an operating profit of £37.7 million. Ladbrokes would record pre-tax profits of “25 million, maintaining its strong start in 2016, as it reverses 2015’s corresponding £50 million group losses.

Commenting on the H1 2016 performance, Ladbrokes Chief Executive Jim Mullen said: “These strong numbers show customers are responding positively to the new strategy at a time when the sporting gods have generally been on our side and we’ve enjoyed some helpful bookmaker friendly results. This combination has helped boost profits in the first half of the year.”

He went on to say: “We will continue to compete hard on pricing, product and customer services and maintain a relentless focus on meeting and exceeding customer expectations. With the merger on the horizon we recognise there is a lot of hard work still to come, but this is an exciting time for Ladbrokes and we approach the opportunities ahead with a strong sense of confidence.”

Ladbrokes will be exhibiting at Malta’s biggest iGaming summit of the year, SiGMA16. If you would like to join this gaming event and watch Ladbrokes along with the many other exhibitors in November, click here to register.

Unibet Sees New Revenue Record in Q2

Online gambling operator Unibet continues to set new records in what is proving to be a monumental year for the company.

UEFA Euro 2016’s success has propelled Unibet to raise its revenue by 57% year-on-year to a new record of £126.6million for the second quarter of 2016 ending June 30.

Figures showed that earnings rose to £22million, up from the £19million in the same period last year, while profit after tax was up only £100k, reaching merely £13.5million, due to the heavy marketing surrounding the football tournament.

Henrik Tjärnström, CEO of Unibet Group, said: “The quarter was characterised by the Euro 2016 which provided a new all-time high in customer activity and continued strong growth. Margins in the tournament were significantly higher in July than in June. If the margins had been consistent across the tournament, then gross winnings revenue for the second quarter would have been around £3m higher.

“In the period from 1 to 24 July 2016, average daily gross winnings revenue in GBP has more than doubled compared to the same period in 2015. Adjusting for the unusually high margin on the final stages of the Euros, the impact of exchange rate changes and acquisitions, the organic constant currency growth is close to 50 per cent.”

Euro 2016 betting generated £19.6million worth of revenue, and a hefty 14% betting margin. The tournament also helped to drive active customer numbers to 1.13 million at the end of the quarter, nearly double the 603k from the same period in 2015. Around 216k of these new customers came via iGame Group and Stan James Online; two businesses acquired by Unibet last year.

The revenue gains were aided by £14.7 million in contributions from these recent acquisitions, without which, revenue was up 39% while earnings would have dropped 8% to £17.4million.

Francesco Rodano Joins Playtech

Playtech, a gambling software development company, has today announced that former Italian online gaming regulator, Francesco Rodano, has joined the firm’s executive management team as Chief Policy Officer.

Working out of the UK office, Rodano will report to Mor Weizer, the group’s chief executive officer.

Rodano’s new role will see him engaging with policy-makers to advise company executives on governmental policies at local, state, national and EU levels. Rodano will also be tasked with seeking out new business opportunities for Playtech’s growing international presence.

Playtech is set to benefit from over 18 years of experience that Rodano has gained from working with a number of different online businesses, with his last nine years spent at AAMS; the Italian gambling regulatory authority, where he was responsible for managing and leading the country’s online gaming regulation.

While at AAMS, Rodano reformed the Italian regulatory framework and oversaw the introduction of a comprehensive range of regulated online products, including poker in 2008 and casino games in 2011, attracting over 100 licensees to the market.

During his tenure, Italian gross gambling revenue grew to above €800 million, making it Europe’s second largest regulated market, with Italy becoming a successful case study for other regulators whose countries have or are soon to be regulated. In 2008, he was also awarded the IMGL’s Regulator of the Year award.

Since 2012, Rodano has been a member of the European Commission’s Group on Gambling Services, where he supported a draft of the formal initiatives recently adopted by the Commission.

Mor Weizer, CEO at Playtech, said “Thanks to his professional achievements and his personal stature, Francesco has become a highly influential figure in the international online gambling arena. We’re delighted he has chosen to join Playtech and I’m sure he will provide an invaluable contribution to the further growth of the company.”

Francesco Rodano said “After many years spent as a regulator, I’m excited to move to the industry side and to join Playtech at a time when focus on regulated markets is a global priority. Playtech has a talented and respected management team and I am really looking forward to supporting them on public policy matters.”

Olybet to Relaunch income Access Affiliate Programme

Continuing its recent run of partnership successes, Income Access, industry affiliate marketing and player acquisition software provider, has announced that it has agreed to service the affiliate programme of Olympic Entertainment Group (OEG), an Estonia-based gambling operator.

Income Access management detailed that, utilizing its gaming specialized marketing software, OEG will relaunch its OlyBet brand affiliate program.

OlyBet, regulated by the Estonian Tax & Custom Board since 2010, has become one of the most popular iGaming and online betting firms in Eastern Europe. OEG management stated that in order to continue its growth momentum in core regions, a new affiliate programme was necessary.

Income Access’s relaunch of the OlyBet partnership programme offers affiliates a 50% revenue share offer for their first three months promoting the brand.

Veiko Krünberg, Managing Director of OEG’s Online Operations, said: “Our aim is to attract affiliates across the board with our personalised approach and irresistible offers for players.”

“We’ve redesigned the programme to leverage our strongest side – casino operations. We are confident that this new focus will help affiliates succeed.”

Nicky Senyard, founder and CEO of Income Access, added “We are pleased to partner with one of the largest land-based casino operators in Europe.”

“Our affiliate team is looking forward to helping OlyBet grow their already successful online operations.”

If you are interested in purchasing tickets to SiGMA16, Malta’s biggest upcoming gaming event this November, click here to register: https://maltaigamingsummit.com/register/
The early bird offer is available until the end of May.