OGQ: DraftKings and PointsBet shares on the up in Q4 2023

Once a quarter, the Online Gambling Quarterly provides an overview of the best-performing shares of online gambling operators and service providers. The biggest leap among the analysed ‘pure’ online gambling companies was taken by DraftKings with an increase of +21% over the past three months.

Share developments

The average share price in the industry saw an increase of -4% in Q4 2023. Below are the key results of the analyses – find here more insights:

• “Winner” – The biggest leap in the sample of online gambling-focused companies was taken by DraftKings with an increase of +21% in Q4 2023; followed by PointsBet (+16%).
• “Loser” –  Catena Media and Gambling.com had the worst three-month performance in the analysis with a decrease of -32% and -26%.
• Average growth –  On average, share prices decreased by -4%.

• Comparison to Nasdaq Composite – Compared to the three-month development of the Nasdaq Composite (+13%), the average growth of the online gambling industry looks “worse.
• Multi-channel operators – Among the multi-channel operators that also operate a relevant retail business, PENN is the ‘winner’ with a share development of +15% over the past months.
• Comparison to multi-channel operators – It is also interesting to compare the performance of exclusively online gambling companies with that of companies also operating a retail/land-based business. The share prices of the online/retail operators increased on average by +11% (compared to -4% for the online-only operators).

P/E ratios

The Online Gambling Quarterly also analszed the current P/E ratios for several companies. The ratio provides a good picture of the value of the company.

• Zeal/Tipp24 has the highest P/E ratio – Zeal/Tipp24 leads the ranking with a P/E ratio of 133.
• Average P/E ratio – The average P/E ratio of the sample analysed is 38 (median of 20).

Market capitalisation in relation to Q3 2023 revenues

Traditionally, market capitalisation is correlated to earnings-related figures. But in times of rapidly changing markets such as the US and a relevant number of new and growing market players, earnings-related analyses may be less conclusive.

Therefore, the researchers also set the market capitalisation in relation to the most recent quarterly revenues (in this analysis: revenues in Q3 2023). For operators, the Online Gambling Quarterly took the net gaming revenues, and for all others (tech providers, affiliates, …) they took the revenue related to online gambling (if reported). In some cases, the revenues reported might not be entirely comparable, but the analysis indicates the market dynamics.

• Evolution has the highest market cap / revenue ratio – Evolution leads the ranking in market capitalisation in relation to the most recent quarterly revenue with 52; it is followed by Zeal/Tipp24 (24) and NeoGames (21).
• Average ratio – The average ratio of the companies analysed is 13 (median of 6).

For more financial analyses have a look at the full report here.