2023 end-of-year iGaming stocks gains and losses – ENT (-26.37%), EVO (13.65%), PTEC (-16.85%), L&W (+45.25%), and 888 (+3.01%). (Image by Pabitra Kaity at Pixabay.com)
Benchmarks are necessary for any online casino business model to track its development. Key Performance Indicators (KPIs) can help business owners identify their strengths and weaknesses. Online casinos use key performance indicators (KPIs) to evaluate and enhance their company’s business.
Data is the basis for decision-making in successful businesses. Without carefully considering all the available information, any action operators take could just as easily lead you to take the wrong one, and they might not even realise they’ve lost until it’s too late.
For this reason, companies use Key Performance Indicators (KPIs) to gauge how well their company is doing.
There is no one-size-fits-all recipe for managing an online casino, just like in any other business. It is possible to gauge the significance of your casino using the KPIs, but success cannot be achieved by following a magic formula. Companies will need to monitor them closely over time, modifying their business plan as necessary and tracking the results of those modifications.
They monitor KPIs for online casinos, such as GGR, NGR, and Conversion rates, and provide operators with benchmarks to assess the development and guide future actions.
Gross Gaming Revenue
Gross Gaming Revenue is a straightforward metric: the amount players wagered minus the amount they won. However, GGR does not account for payouts such as bonuses. For example, if a player wagers $3 million annually and wins $2.5 million, the casino platform’s GGR for that year is $500,000. GGR is an objective assessment of the game’s outcomes. It displays the money the casino made or lost over a specific time frame.
Net Gaming Revenue
Gross gaming revenue (GGR) minus bonuses, chargebacks, commissions to payment system providers, royalties to game content providers, licensing fees, and taxes equals net gaming revenue (NGR). This is one of the industry’s most used terms, and NGR provides a thorough overview of the performance of an online gambling project. NGR is equal to A-B-C-D, where A is the total of all player bets, B is the total of all player payments, C is the total of all player bonuses, and D is the total of all player taxes. NGR provides a succinct, easy-to-read summary of an online casino’s results. This figure is more detailed than GGR, accounting for a larger range of expenses.
Conversion Rates
The number of users who could have performed an action and the number of users who completed the action are compared to determine the conversion rate. For instance, the ratio of individuals who saw an advertisement to those who clicked on it or the number of recipients of an email containing a call to action and the proportion of clicks on it.
Identifying the weak points in the chain can be accomplished by dissecting the customer journey. Operators map a player’s journey to becoming a devoted, long-term VIP player from the point they first learn about your brand, for instance, through an advertisement on an affiliate site. Operators can determine whether they need to improve their bonus offers or other promotions to get users to sign up on their website by looking at the conversion rate for this customer journey phase.
Monitoring, dissecting and evaluating player behaviour data is imperative to build your growth strategies and generate fresh ideas. KPIs for online casinos, such as the ones listed above, provide operators with the various methods they need to use to get a clear picture of how their business is doing.
This week’s report will examine how Playtech, Entain, 888 Holdings, Evolution and Light & Wonder finished in 2023 and where they may be headed in 2024.
Disclaimer: This report is not for financial advice. We produce the information for our reader who play online casino games and are also interested in how the brands they use to play real money or crypto games perform on global stock exchanges. You can loo through historical bi-weekly reports starting with our previous update – iGaming Stocks Update Issue 26 2023.
Evolution (EVO) – NASDAQ Stockholm – SEK
Evolution has had a mediocre year, finishing 2023 with a 1.35% gain in share price. Market analysts have stated that the stock price is higher than the hospitality industry and may be a buy if it drops to 1,000 SEK or lower. The share price is currently trading at 1,156 SEK, down 3% in the last two weeks.
- Current: 1,156 SEK
- 24 December: 1,194 SEK
- 15-Day Gain/Loss: -38.00 SEK (-3.18%)
- 2023 Market Open: 1,050.50 SEK
- Yearly Gain/Loss: +105.50 SEK
- Yearly (%) Movement: +10.05%
Entain PLC (ENT) – London Stock Exchange (LSE) – GBX [British Pence]
Entain is currently dealing with shareholder unrest as the share price had fallen dramatically in 2023. The stock price fell 33.6% last year, forcing the CEO to resign a couple of weeks ago and to finalise the company’s strategy to withdraw from unregulated markets. The company is withdrawing from 140 unregulated markets, including Antarctica and the Vatican. Territories with less than 1,000 permanent residents make up the total of 140 markets that the bookmaker will exit. Critics have scoffed at this “achievement” as the consensus is that PTEC was never in or shouldn’t have been in those markets. Argentina, Russia and Ukraine were also closed. The share price has been down since January 2023 and is currently trading at 973.80 GBX.
- Current: 973.80 GBX
- 24 December: 994.40 GBX
- 15-Day Gain/Loss: -20.60 GBX (-2.07%)
- 2023 Market Open: 1,350.50 GBX
- Yearly Gain/Loss: -376.70 GBX
- Yearly (%) Movement: -27.9%
Playtech (PTEC.L) – London Stock Exchange (LSE) – GBX [British Pence]
Playtech had a turbulent 2023, as the share price tumbled 20.7%. PTEC started 2023 with a sharp price increase until May when the stock hit a yearly high of 634 GBX. Since May, the company has been in steady decline due to poor quarterly earnings reports and a failed takeover of 888 Holdings. The share price is currently trading at 432.60 GBX and is bullish, with weak support at 412 GBX.
- Current: 432.60 GBX
- 24 December: 445.69 GBX
- 15-Day Gain/Loss: -13.09 GBX (-2.94%)
- 2023 Market Open: 536.00 GBX
- Yearly Gain/Loss: -103.40 GBX
- Yearly (%) Movement: -19.29%
Light & Wonder (LNW) – NASDAQ NYC – USD
Light & Wonder is up 30% in the last the last year. They are hitting an all-time high of USD 89.02 in November of 2023. Since the last report, the share price has dropped 8% and is currently trading at USD 77.60. Analysts believe this decline is just a market correction and that LNW will beat 2024 Q1 estimates.
- Current: 77.60 USD
- 24 December: 84.42 USD
- 15-Day Gain/Loss: -6.82 USD (-8.08%)
- 2023 Market Open: 58.12 USD
- Yearly Gain/Loss: +19.48 USD
- Yearly (%) Movement: +33.51%
888 Holdings (888.L) – London Stock Exchange (LSE) – GBX [British Pence]
Considering the volatile year that 888 Holdings had in 2023, the company has fared relatively well. The company was down 9% for the year but has been rising steadily since last March, when it hit a yearly low of 50 GBX. The company’s share price is 86.75 GBX and has been flat since the previous report.
- Current: 86.75 GBX
- 24 December: 90.70 GBX
- 15-Day Gain/Loss: -3.95 GBX (-4.35%)
- 2023 Market Open: 88.05 GBX
- Yearly Gain/Loss: -1.30 GBX
- Yearly (%) Movement: -1.48%
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