Read about Entain, Flutter, Kindred & Inspired latest financial reports in the iGaming industry. Get key revenue, profit, & more metrics. (Photo by Tomislav Jakupec on Pixabay)
As iGaming companies post their 2022 financial year-end results, there seems to be a common theme in their financial information. The industry is united by the seriousness of the regulatory issues in various countries/territories and the increasing financial resources allocated to keep working in those regions in accordance with local regulations.
While these online gambling companies have devised different strategies to engage industry headwinds, some appear to produce better results than others. This report will present year-end financial information on recent industry releases for Entain, Flutter, Kindred and Inspired Entertainment. The report will present key metrics to give an overall view of each company as it finished up in 2022.
(1) Net Gaming Revenue (NGR)
(2) Retail revenue
(3) Online Gambling Revenue
(4) Customer Base
(5) Profit
(6) EBITDA
Inspired Entertainment (INSE)
INSE has come off substantially in the last 2 weeks. The stock started dropping on March 7th, in anticipation of the March 13th earnings release. The company missed the EPS by $0.13 and has continued to spiral down to its current price of $12.46. The company is a well-known in the UK online casino markets for its arcade land-based video slots that also turn into fruit machines online.
- Net Gaming Revenue: Although INSE posted a 14% increase in revenue in Q4 2022, the stock has plummeted. The company posted $78.6m versus the market consensus of $68.44m
- Retail Revenue: The betting shop performance rose to 41.8% to £38.0m
- Online Revenue: This UK business segment of INSE assisted revenue figures with a 35% jump to £14.9m
- Customer Base: The customer base saw marginal growth in the last quarter and was up 8% over the last quarter
- Profit: Inspired had a net profit of £20.8m compared to a loss of £19.6m
- EBITDA: The full year 2022 adjusted EBITDA was £81.5m, which includes a £9m currency adjustment, and was up 56%
Entain (ENT)
Entain continued to make acquisitions in 2022 to diversify its portfolio in over 40 territories. The company’s key strategy is to increase its customer base and exit markets that are not fully regulated.
- Net Gaming Revenue: Entain’s overall NGR was up 12%, to £4.29bn, from the previous year.
- Retail Revenue: NGR is up due to healthy retail sales – up 66% from 2021, mainly from betting shops.
- Online Revenue: NGR online revenue was down 1%.
- Customer Base: Active customers grew by 7%.
- Profit: After-tax profit dropped to £32.9m, down 74% – reflecting innovation spending, and increased regulatory upgrades.
- EBITDA: The group EBITDA increased 13% to £993m.
Flutter (FLTR)
The UK-based company has gained momentum in sports betting through FanDuel. It currently has a 50% share of the online sports betting market in the U.S.
- Net Gaming Revenue: Flutter posted an increase in revenue of £7.69bn, up 27% from the previous year.
- Retail Revenue: NGR in retail rose 27% to £4.79bn.
- Online Revenue:Online gaming revenue climbed to £2.91bn, a rise of 28%
- Customer Base: Average monthly players rose 14% to 7.6m monthly customers
- Profit:Core profit grew by only 4% to £1.273bn, disappointing investors
- EBITDA: The adjusted EBITDA rose to £1.034bn, which was another miss as customer wins during the FIFA World Cup and Premier league favourites won, a Q4 loss of £39m for FLTR
Kindred (KIND SDB)
The Swedish-based Kindred Group announced last month that the company had repurchased 1.05m shares to return excess cash back to the shareholders. The company has suffered a challenging year but stated that it will continue to execute its growth strategy within existing markets. A large factor in the poor year-end results was their temporary exit from the Dutch market from Oct. 2021 to July 2022.
- Net Gaming Revenue: Kindred Group posted £1bn in revenue for 2022, down 15% from the previous year
- Retail Revenue: Kindred has a long-term strategy to expand its North American partnerships, but this strategy has cost the company a £40.6m in the last year. The loss was due to increased operating expenses in an effort to optimize scalability
- Online Revenue: Casino, poker and games rose 25% year-on-year to £295.1m
- Customer Base: Kindred’s customer base continues to grow on a monthly basis to 1.83m active quarterly users, a 25% growth over the previous quarter.
- Profit: Profit after tax for the full year was £120.1m. This puts the company in a net liability position but strong cash flows will support operations and payment schedules
- EBITDA: The year-on-year EBITDA decreased to £129.2m, a 61% drop (EBITA target for full-year 2023 is £200m)
Looking for more financial news? Take a look at our gambling share prices update covering stock prices for online casino companies including 888 Holdings, Entain, Inspired Entertainment, Light & Wonder, and more.
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