London/Munich, 15 October 2013 – The key online gambling industry conference EiG in Barcelona just closed its doors last week. MECN‘s researchers published their new Q3 Online Gambling Quarterly report to coincide with the annual industry roundup. This report again covers online gambling industry benchmarks, KPIs, and related topics and comes to mixed conclusions in its analysis of the overall state of the industry.
It’s going to be tough – declining growth rates
The analyses of the financial results of a large number of online gambling operators show that the growth rates of many KPIs and financial figures (e.g., revenue, active players, …) are declining.
In the first half of 2013 the average total revenue growth (compared to the year before) was 11%, down from 18% in H2 2012. The Q2 2013 revenue growth rate (compared to the year before) is now at 6%, down from 30% in Q1 2012.
Industry climate only „satisfactory“ with no improvements likely in the future
In line with the growth development of the financial figures, most of the experts surveyed in MECN‘s panel assess the current business climate as only „satisfactory“ (on a scale ranging from „poor“ to „satisfactory“ to „good“). Martin Oelbermann, co-author of the study, explains further: „It seems that the business climate worsened over the past few months. In spring, as many as 42% of the market insiders considered the climate to be „good“ – a percentage that fell to 11% in fall.“ This rather „sceptical“ assessment is not likely to change significantly in the next 12 months – neither for the worse nor for the better.
Potential growth drivers losing their attractiveness
Some of the hottest topics, such as social gaming and gambling, mobile, … may still be „hot“, but they are losing their attractiveness and experts are less confident in regard to their future growth potential.
Nevertheless, there are reasons for optimism
Although the general data and mood are rather gloomy, there are reasons for hope. Some companies (e.g., Mr Green) are still showing impressive growth rates, and on average the shares of online gambling companies went up by 11% in the past 6 months (and outperformed the FTSE by far), the average share/company recommendation of analysts also increased slightly, social growth stats are positive, …
Winners and losers in the future
The online gambling industry is no longer a sure-fire success with every market player getting a fair share of the market. As mentioned above, times are going to be tough, and the market will see „winners“ and „losers“. According to the experts MECN surveyed, Paddy Power, Bet365, and Unibet will likely be among the „winners“ – click here for a detailed graph (incl. „losers“).
Online Gambling Quarterly – Q3 2013 – Comprehensive quarterly report analysing updated benchmarks, KPIs, trends, … covering all sectors of the online gambling industry
This quarterly report covers a wide range of topics from key company sectors, such as finance, marketing, strategy, …. Due to this extensive coverage, the report is a must-read for executives and departments of all companies active in the online gambling market. This regular report offers unprecedented insights into the industry, including:
- Strategic issues – Strategic topics, such as overall industry climate, trends, forecasts, stock development, …
- Financial benchmarks – Quarterly revenue benchmarks, EBIT and cost benchmarks, …
- Marketing benchmarks – Social benchmarks, SEO benchmarks, affiliate marketing benchmarks, …
- Product-related topics and benchmarking – Growth potential for selected products, benchmarking of product offers, …
- Analyses of regions and regulated markets – Regional analyses, such as the level of internationalization and in-depth coverage of regulated markets, …
- In total, the report has ca. 100 pages and ca. 150 graphs/exhibits.