Open main menu
Home
Random
Donate
Recent changes
Special pages
Community portal
Preferences
About Stockhub
Disclaimers
Search
User menu
Talk
Contributions
Create account
Log in
Editing
Aspire Global
(section)
Warning:
You are not logged in. Your IP address will be publicly visible if you make any edits. If you
log in
or
create an account
, your edits will be attributed to your username, along with other benefits.
Anti-spam check. Do
not
fill this in!
===B2C=== The B2C segment includes AG’s proprietary online gaming sites, which it markets directly to online customers. The most notable brand is Karamba. The B2C brands use AG’s Core platform, and therefore benefit from the scale economies that B2B customers enjoy when they become a client. As well as providing profitable growth to AG, the business provides valuable insight into wider product development in iGaming. The long-term growth strategy has been to enter new verticals and thus present the opportunity to attract new online customers. B2C’s revenue is the online game’s NGR. The B2C segment bears the expenses of marketing and customer acquisition. It also pays technology platform fees to AG’s Core. In March 2021, the company announced the segment is subject to a strategic review, with the aim of determining how best to accelerate growth. One possible outcome of the review is a disposal of the B2C segment. B2C’s KPIs Below Edison Investment Research highlights the annual and quarterly progression of four of B2C’s main KPIS, rebased to 100 in Q117 to aid comparability, and marketing expense relative to net gaming revenue (NGR). Since FY17, the number of active users has increased at a CAGR of c 10% from 138.1k to 182.9k at the end of FY20, having peaked at 197k at the end of FY19. The value of transactions has increased at a CAGR of 6%, from €1.18bn in FY17 to €1.41bn in FY20, peaking at €1.58bn in FY18, implying a lower average spend per new customer. Growth in FY18 was driven by more efficient marketing and CRM, as well as the launch of sportsbook ahead of the 2018 FIFA World Cup. In FY19, ongoing innovation and the entry into new markets was not enough to offset the tough comparative from the World Cup, and a change in regulations in the Netherlands and the UK in the fourth quarter which negatively affected growth. Regulatory changes continued to affect its growth into the start of FY20, before the beneficial effects on online gaming from COVID helped the business grow all KPIs y-o-y. Through FY20, there has been improving momentum, ie y-o-y growth in the value of transactions and the level of deposits, albeit with fewer active players but on an improving trend, implying greater spend per active customer, following significant investment in marketing in key regulated markets, the UK, Ireland, and Denmark. B2C’s financial performance In FY20, B2C represented 31% of group revenue (GGR) and 23% of group EBITDA, with an EBITDA margin of 12.1%. B2C’s revenue (GGR) has grown in every financial year since FY20 and net revenue, ie after VAT, has grown at a slightly lower CAGR of 12%, which reflects increasing exposure to regulated markets where taxes tend to be higher. In our forecasts Edison Investment Research assumes low single-digit growth for the number of active users and c 5% growth for average revenue per user, producing 7% growth in total. Our forecasts assume a stable EBITDA margin of 12.1%.
Summary:
Please note that all contributions to Stockhub may be edited, altered, or removed by other contributors. If you do not want your writing to be edited mercilessly, then do not submit it here.
You are also promising us that you wrote this yourself, or copied it from a public domain or similar free resource (see
Stockhub:Copyrights
for details).
Do not submit copyrighted work without permission!
Cancel
Editing help
(opens in new window)