Net Gaming Q3 revenues fall 30% as profits sink
Malta-based affiliate will appoint brand managers to try and arrest ongoing revenue slump
Net Gaming today reported a Q3 revenue decrease of 30% to €3.5m, with the affiliate attributing the downturn to its switch to revenue sharing which it said would benefit the business in the long run.
Third quarter EBITDA plummeted 41% to €1.9m, compared to €3.2m in 2018, while profit after tax also dropped 44% to €1.1m.
New depositing customers (NDCs) declined by 14% for the reporting period.
The drop-off was in part down to Net Gaming’s switch to rev share, which accounted for 60% of Q3 revenues and double the amount of last year.
“The rapid transition benefits us in the long term and gives us a more stable revenue base, but has clearly had a negative impact on our revenue in recent quarters,” said CEO Marcus Teilman.
Net Gaming will appoint brand managers for each of its leading brands to try and inspire a growth turn around heading into 2020.
Net Gaming CEO Marcus Teilman
Teilman said: “Our main focus is to grow in regulated markets with a high proportion of revenue share.
“We want to “dig deeper” in existing markets, strengthen our existing websites and invest even more in our strongest brands.
“We do this by reallocating resources and building a more forward-looking organisation by measures such as the appointment of brand managers for our main brands.
Teilman said the affiliate had around 1.5% market share in European casino and was convinced it could grow that share “step by step”.
“We will continue to feel the regulation effects in the short term, and we are obviously not at all satisfied with the figures we have achieved in recent quarters,” he added.
“But looking on the bright side, we are convinced that we have an exciting journey ahead of us in an underlying growing market where we will be a leading player working at a fast pace and with a clear desire to take the lead,” he added.
Significant events in the quarter included the acquisition of UK sports betting portal MaxFreeBets, as well as technical upgrades to its CasinoSpielen, CasinoGuide and Pokerlistings brands.