All iGaming firms lost value on their stock price since the previous report 2 weeks ago. Moreover, only LNW has made gains since Jan 2023! (Image by Pabitra Kaity at Pixabay.com)
This report has covered different aspects of the iGaming industry, and this report will discuss how the operators acquire new players and how to keep them.
The market is very competitive and saturated, so effective strategies to retain these users are now the focus.
In past years, companies focused on acquisitions to capture significant market share, but now the focus is sustaining loyal customers as the market matures. This new strategy focuses on technology… specifically AI, and how it is changing the industry.
Operators use AI algorithms to target local preferences, releasing games that appeal to specific demographics. The data collected can predict users’ preferences (and the development of future games) so that players’ priorities are tailored in real-time. The use of personalized AI has seen a rise of 25% in SEA, India and Latin America, signalling that this new technology is the future of the iGaming industry.
Tech is the driving force in many industries, and iGaming operators need to be quick to adopt and integrate new advances to keep a competitive edge.
Gamification, where players can interact with the platform for a complete gaming experience, has increased activity. Games that challenge let players unlock different levels/achievements and put them in the game, creating a new level of play and a sense of community. This new dynamic has seen activity surge with longer playing sessions and solidifies user loyalty/longevity.
The cost to operators to acquire a new user is very costly. Industry data has revealed that procuring new clientele can cost up to 5 times more than retaining a regular user. Also, the data shows that regular users of a particular platform spend more money than new users, approximately 60% more. It is imperative that operators keep loyal users, and there are several ways that this is achieved.
AI enables gambling platforms to harvest vast amounts of user data, analyze this data and engage players with their preferences in real-time. The future looks bright for the iGaming industry, and technology is the path for an iGaming experience that is more personalized, immersive and intuitive.
This week, the report will check out the price movement of Playtech, Entain, 888 Holdings, Evolution and Light & Wonder.
Disclaimer: The info on this page is not trading advice. For trading strategies please visit a portal with trading experts offering advice on how to invest in iGaming shares. Please also check out our previous update – Issue 21 – iGaming Stocks Update.
Evolution (EVO) – NASDAQ Stockholm – SEK
Evolution has been in a slow downward trend since June but has held up against its peers. The share price hit a yearly low last week of 935 SEK and is down 4.25% since January. In the last 2 weeks, the stock price is down 5.45% but spiked 3% yesterday. The pullback may signal institutional investors to sell EVO, negatively affecting individual investors. The next 2 weeks will be interesting to see how the institutional investors react to EVO’s current price of 1.005.40 SEK. For more information on the financial performance of Evolution, I recently published the Evolution AB Q3 2023 Financial Results here.
- Current: 1.005.40
- 18 October: 1,054 SEK
- 14-Day Gain/Loss: -48.60 SEK (-4.61%)
- 2023 Market Open: 1,050.50 SEK
- Yearly Gain/Loss: -45.10 SEK
- Yearly (%) Movement: -4.29%
Entain PLC (ENT) – London Stock Exchange (LSE) – GBX [British Pence]
Last month, Entain released its Q3 financial report and stated that revenue growth slowed in Australia and Italy and that low NGR was due to a tougher regulatory environment in the UK. The company cut Q4 NGR growth to low double-digit growth, which has furthered the decrease in share price. ENT is down almost 5% since the last report and is trading at 913 GBX.
- Current: 913 GBX
- 18 October: 959 GBX
- 14-Day Gain/Loss: -46 GBX (-4.80%)
- 2023 Market Open: 1,350.50 GBX
- Yearly Gain/Loss: -437.50 GBX
- Yearly (%) Movement: -32.40%
Playtech (PTEC.L) – London Stock Exchange (LSE) – GBX [British Pence]
The troubled Playtech continues its downward trend as it hit a new yearly low last week when it touched 365.40 GBX. The stock has rebounded marginally and is currently trading at 386 GBX. It appears that the executive strategy is to buy its way out of this slump by buying other operators and signing new partnerships to increase its market share. PTEC has signed a new partnership with FanDuel in Canada and is in a £500m bidding war with Flutter in Italy over the acquisition of SKS365. A significant issue for investors is the ongoing legal dispute (and poor Q3 earnings) between PTEC and Caliente in Mexico on a £29.9 million annual service charge payable until 2034. If PTEC were to terminate the agreement, the compensation would be almost £296.6 million. It would appear that PTEC has a long way to go in the near future to win back the confidence of its investors. That said, the company recently released K-Pop Roulette, showing the software provider’s ambition for success in Asia – the world’s largest iGaming market.
- Current: 386 GBX
- 18 October: 395.40
- 14-Day Gain/Loss: -9.40 GBX (-2.38%)
- 2023 Market Open: 536.00 GBX
- Yearly Gain/Loss: -150.00 GBX
- Yearly (%) Movement: -27.99%
Light & Wonder (LNW) – NASDAQ NYC – USD
Light & Wonder has outperformed its peers in the last 4 months. Analysts believe the stock is underpriced because cash flow is growing, and earnings are forecasted to grow faster than U.S. GDP by 2.2%. LNW hit a yearly high last month of USD 79.08 and is currently trading at USD 73.34.
- Current: 73.34 USD
- 18 October: 75.25 USD
- 14-Day Gain/Loss: -1.91 USD (-2.54%)
- 2023 Market Open: 58.12 USD
- Yearly Gain/Loss: +15.22 USD
- Yearly Percentage Movement: +26.17%
888 Holdings (888.L) – London Stock Exchange (LSE) – GBX [British Pence]
After releasing poor Q3 financial results last month and issuing a profit warning for full-year profit guidance, the shares fell 17%. The company stated several reasons for the mixed results – customer-friendly outcomes, compliance/regulatory issues and marketing strategies. The company expects a 2% decline in full-year revenue for 2023. In the last 2 weeks, the share price has dropped 4% and is currently trading at 82.36 GBX, with support at 81.50 GBX and strong resistance at 85.65 GBX.
- Current: 82.36 GBX
- 18 October: 85.20 GBX
- 14-Day Gain/Loss: -2.84 GBX (-3.33%)
- 2023 Market Open: 88.05 GBX
- Yearly Gain/Loss: -5.69 GBX
- Yearly Percentage Movement: -6.46%
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