Big Increases in Q1 Results for Gambling Companies

Big Increases in Q1 Results for Gambling Companies

It’s that time of year when businesses report their first quarter results. The results for several companies in the gambling industry have been very good indeed.

888 Holdings have seen a rise of 56% in year-on-year revenue, climbing to $272.5 million for 2021’s first quarter. Three quarters of that revenue comes from growth in regulated markets. The number of first-time depositors has risen by 27%. The number of funded active players has gone up by 18%.

B2C revenue has seen an increase to $262.8 million. The largest rises have been seen in their casino with a 68% increase with sport up 53%.

The 888 CEO is Itai Pazner, and he’s obviously delighted with the Q1 results. “The strong momentum in 2020 has continued into the first quarter of 2021, with a new all-time-high for FTDs and revenues,” he said. Pazner added that the trends shown were “partly inflated” by the time in 2020 when there were fewer sports events.

US Caesars Entertainment Deal

2021 will see 888 hoping to expand the US side of their business. They have a deal with Caesars Entertainment that will upgrade their poker platform.

Also looking to expand in the US are the Kindred Group. Their Q1 has seen a 41% increase in gross winnings revenue with £352.6 million reported. Their profit figure after tax for the first quarter of this year was £72.6 million. That’s compared to 2020 when the profit after tax was only £1 million. The big increase was helped by the rise in online gaming during the pandemic with a record 1.8 million active customers.

A key development this year has been forming a partnership with the Quechan Tribe. This will allow them to get access to the California and Arizona markets. CEO of the Kindred group is Henrik Tjarnstrom who says their long-term American investments are “continuing to pay off.”

If you love playing at online live casinos, you probably won’t need to be introduced to Evolution Gaming. They are also pleased with their Q1 results. They’ve seen their operating revenue increase by 105% to €235.8m ($284.7m). There was an even larger increase in their operating profit for Q1. That went up 148% to €141.6m.

Evolution/NetEnt Merger

Towards the end of 2020, Evolution acquired NetEnt and that has been a huge success. Evolution CEO Martin Carlesund says the company has “a good momentum both in terms of growth and profitability.” He added that the belief is that Evolution is “well-set to continue to capitalise on the growing interest in online casino worldwide.”

Another company seeing a big increase in profits are suppliers Kambi. Last year saw them report a profit of €4.8m. Their Q1 results have seen those profits increase to €15.1 million after tax. Again, expansion into the growing American market has helped.

This year has seen them launch in four states, namely Illinois, Michigan, Arkansas and Virginia. That takes the total number of states in which they operate up to 14. The climax of the NFL season and basketball’s March Madness college basketball tournament has also helped boost figures.