OGQ: NeoGames leads revenue growth in Q1 2023
Online Gambling Quarterly analyses the key financial figures of igaming companies from the first quarter of 2023
The Online Gambling Quarterly regularly provides various in-depth analyses of key financial figures of igaming companies. In this article, the analysts share some revenue growth benchmarks of the recent quarter. In Q1 2023 NeoGames led year on year (YoY) revenue growth, with an increase of +274% (YoY); the average YoY growth in the quarter of all online gambling companies analysed was +33%. Regarding the quarter-on-quarter growth (compared to the previous quarter Q4 2022), best practice growth was achieved by Lottomatica (+39%).
Total revenue growth analyses (YoY) – for more data click here
The Online Gambling Quarterly analyses the total revenue figure across all segments and the revenue development for each vertical. For the Q1 2023 development of the total revenue, the researchers provide the following insights:
- On average, total revenues grew in Q1 2023 by +33% (YoY), excluding NeoGames, the average growth rate is +2%
- Best practice growth (YoY) was achieved by NeoGames with +274%. NeoGames is a provider of online lottery and igaming solutions, and recently acquired Aspire Global (incl. BtoBet and Pariplay) and is now scheduled to be acquired by Aristocrat for $1.2bn. Revenues were $49.5m in Q1 2022, compared to $13.2m a year before. Q1 2023 was the third quarter after the completion of Aspire Global. Online lottery revenues were US14.4m during Q1 2023 (+8.7% YoY).
- Lowest/negative growth: At the bottom of the rankings, we find GAN B2B and 888 Online.
Total revenue growth analyses (QoQ) – for more data click here
In many cases the YoY growth rates are exceptionally high due to acquisitions made in a previous quarter, an effect that carries through for consecutive quarters after the acquisition. Therefore, several leading companies in the YoY growth benchmarking have those top positions more or less due to acquisitions made within the 12 months before the analysis. The researchers at Online Gambling Quarterly have therefore decided to also analyse quarter on quarter (QoQ) benchmarks as well. Those growth rates might be impacted by seasonal effects (e.g. football season vs. no football season) and other changes, but these figures can provide a quick, current overview of the most recent growth dynamics while excluding the effects of acquisitions in previous quarters.
- Average growth: Revenues increased in Q1 2023 compared to the previous quarter by +2%.
- Best practice growth (QoQ) was achieved by Lottomatica (+39%). Lottomatica had online revenues of €124m in Q1 2023 and 727,795 active users. The igaming segment and the acquisition of Betflag drove the recent growth. Betflag was consolidated as of December 2022, and contributed €23 million in revenue in Q1 2023.
Betting revenue growth analyses (YoY) – for more data click here
The Online Gambling Quarterly also analysed the development of the betting revenues (mostly net revenues) in the recent quarter with the following insights:
- Average growth: Betting revenues increased in Q1 2023 by +29% YoY.
- Best practice growth was achieved by Flutter US with +147% and Rivalry with +118%.
- Lowest/negative growth: At the bottom of the rankings, we find bet-at-home and Caesars Digital.
For more financial analyses have a look at the full report here.