Angler Gaming leads Q2 revenue growth as GVC swerves sports betting decline

The Online Gambling Quarterly (OGQ) regularly provides various in-depth analyses of key financial figures of igaming companies.

In this article, the analysts share some revenue growth benchmarks of the recent quarter. In Q2 2020, Angler Gaming led year-on-year (YoY) revenue growth (compared to the previous year) with an increase of +73% (YoY); the average YoY growth in the quarter of all online gambling companies analysed was +9%. Regarding the QoQ growth (compared to the previous quarter Q1 2020) best practice growth was achieved by Churchill Downs (+80%).

Covid-19 was surely a game changer for the online gambling industry. But although sports events were suspended for most of Q2, the industry seems to have adapted very well. Sports betting revenue dropped in Q2 (average -42% YoY) but the overall revenue (including all verticals) went up (average +9% YoY), a development driven mostly by significant growth in the online casino sector.

But the industry is split into two. Some companies, including GVC and Kindred, were able to compensate for the disruption in the sports calendar and were even able to increase profits due to Covid-related cost savings (e.g. marketing). Other companies, such as PPB Online (Flutter), were hit harder. But in general, the online gambling industry can breathe easy again, and many experts assume that the migration from offline to online business will continue, no matter how Covid-19 develops.

Total revenue growth analyses (YoY)

OGQ analyses the total revenue figure across all segments and the revenue development for each vertical. For the Q2 2020 development of the total revenue, the researchers provide the following insights:

• On average, total revenue (all verticals, …) grew in Q2/2020 by +9% (YoY)
• Best practice growth (YoY) was achieved by Angler Gaming with +73%. Angler Gaming’s core business is to own shareholding in online gambling companies such as ProntoCasino, Premier Live Casino, … In Q2/2020 the company reported an all-time high in both revenue and net profit. Revenues increased by +73% to €11.6m with an EBIT of €3.7m.
• Lowest/negative growth – At the bottom of the ranking we find Zeal/Tipp24 and Global Gaming.

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Total revenue growth analyses (QoQ)

In many cases, the YoY growth rates are exceptionally high due to acquisitions made in a previous quarter – an effect that carries through for consecutive quarters after the acquisition. Therefore, several leading companies in the YoY growth benchmarking have those top positions more or less due to acquisitions made within the 12 months before the analysis.

OGQ researchers have therefore decided to also analyse quarter-on-quarter growth (QoQ) benchmarks as well. Those growth rates might be impacted by seasonal effects (e.g. football season versus no football season) and other changes, but these figures can provide a quick, current overview of the most recent growth dynamics while excluding effects of acquisitions in previous quarters.

• Average growth – On average, revenue grew in Q2 2020 (compared to the previous quarter Q1 2020 – QoQ) by +4%.
• Best practice growth (QoQ) – Best practice growth (QoQ) were achieved by Churchill Downs (+80%). Although horseracing content for wagering has decreased, TwinSpires handle grew $100.7m. In addition, revenue in the winter quarter (Q1) is usually the lowest of the year. So the seasonal and the online push came together this year.

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Betting revenue growth analyses (YoY)

OGQ also analysed the development of betting revenue (mostly net revenue) in the recent quarter with the following insights:

• Average growth – On average, betting revenue decreased in Q2/2020 (compared to a year earlier) by -42% (YoY).
• Best practice – Best practice was achieved by GVC sport brands with -6% (YoY).
• Lowest/negative growth – At the bottom of the ranking we find Enlabs.

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