There are many iGaming companies around the globe. Some of them are more successive, while others struggle to get positive results. To belong to the first group, it is crucial to have a vision – what can make your gambling business prosperous, and what is the critical element to success?
In this comparative article, we are going to take the five greatest representatives of the iGaming business – Kindred Group, Evolution Gaming, Flutter Entertainment, Sportradar, and Entain – and show how these companies, despite all the difficulties and challenging situations in the global gambling market, could reach astonishing financial results in 2021 and beat the records of the previous years. What is more, we will give you a quick summary of what trending marketplaces were that could help these companies to reach their results.
And as a little bonus, the official representatives of these businesses shared their thoughts and vision for the further plans of their companies. So, let us get started with the comparative analysis of these iGaming giants in terms of their financial results.
Financial reports of top five iGaming companies with comparative graphs
Before sharing tactics and strategies that these companies applied to their development plans, it is worth taking into account their annual financial reports to see what the results they achieved during the fiscal year of 2021 and comparing the financial data with the fiscal year of 2020 (to see the difference and progress in terms of the revenue).
All the iGaming companies indicated that their latest financial results for 2021 experienced significant growth. This growth includes both numbers – a total gaming revenue and EBITDA. But, it is necessary to look at their annual financial reports separately and only after that make a comparison in the data.
Sportradar
This international company has recently uploaded its financial report for the fiscal year of 2021. This report presented a nice growth in terms of the total gaming revenue of the company. As the financial data shows, the growth was 22.5% compared to the fiscal year of 2020. To represent this data in numbers, the total gaming revenue was €561.2 million for 2021, while the previous year generated an income of €404.9.
Considering the financial data of EBITDA, it is worth also mentioning a shift from €76.9 million in 2020 to €102 million in 2021, representing a year-to-year growth of 27.2%.
Kindred Group
In its annual financial report for 2021, this online gambling operator, which is based in Malta but operates globally, displays a total gaming gross revenue of £1.25 billion (€1.49 billion). It is a significant achievement that indicates the 11-percentage growth (£1.13 billion or €1.35 billion) compared to the fiscal year of 2020.
Talking about EBITDA, this index also experienced an increase. In 2021, it consisted of £332.1 million (€397.8 million), which is another company’s record. Comparing this index with the previous fiscal year of 2020 indicated a difference of 15% – £288.2 million (€328.4 million).
Entain
One of the world’s largest sports betting groups Entain also has something to be proud of, namely a slight growth in the company’s revenue. As the annual financial report for 2021 shows, Entain could also close the fiscal year with a positive increase in terms of income. The total gaming revenue of the company was equal to £3.06 billion in 2020. However, this result was better in 2021 and consisted of £3.09 billion of profit, which is 8% higher.
The EBITDA result was satisfied as well, presenting a 5% increase compared to the result of the fiscal year of 2020. While the company reached the point of £843 million in 2020, the annual financial report for 2021 indicated an income of £881.7 million.
Flutter Entertainment
In terms of total gaming revenue, Flutter Entertainment put a lot of effort and reached what it deserved, namely a 37-percent growth. In 2021, the company reported a generated income of £6.03 billion (€7.23 billion). On the other side, the previous fiscal year brought a total gaming revenue of £4.41 billion (€5.29 billion).
Another crucial moment to include is the data of EBITDA. Unfortunately, this data had a decrease, and the company became the only one with a negative shift. If the fiscal year of 2020 brought £772 million (€924 million) of profit, in 2021, the company reached a less satisfactory result – £723 million (€866 million). Converting this number into percentages is worth highlighting a 6% decrease.
Evolution Gaming
The iGaming giant of the industry Evolution Gaming beat all the records and had the most successful fiscal year in 2021. The company reached truly amazing financial results compared to other iGaming leading companies. The revenue growth reached the point of €1.06 billion. To see the difference, it is worth indicating that the annual financial report for 2020 showed a total gaming revenue of €561.1 million, which is 113% lower than the results for 2021.
The aspect of EBITDA was also changed significantly and was doubled compared to the results of 2020. In 2021, the company reported the EBIDTA index of €734.7 million, while the previous data showed an income of €332.2 million, which is 121% lower, in this regard.
Comparative graphs of the financial reports
As the above data shows, some companies could reach good (even fascinating results) in money-making. And we have made a comparative graph that clearly shows the companies’ financial shifts between 2020 and 2021. It is worth noting that all the companies only increased their income (even doubled the revenue).
One more important moment that should also be compared is financial information related to EBITDA. As the below graphic indicates, almost all the iGaming giants could figure out this moment and keep in a plus. The only exception is Flutter Entertainment, which had a decrease in this regard.
In general, all five companies put enough or even a lot of effort into reaching these successful financial points where they are at the moment. However, it is always interesting to know what triggered such excellent results and what trending marketplaces helped the companies get these results.
Trending marketplaces that allowed companies got success in 2021
Analyzing all the companies’ annual financial reports for 2021, it is becoming more apparent what exactly the trending marketplaces were the keys to success. Firstly, we are going to highlight the common segments, and after that, we will look at the more specific moments.
The rise of the online sector
Without any doubt, all the iGaming companies noticed the digitalization process and the fast-growing pace of the rise of the online gaming sector (considering the aspect of the growth in terms of money). For instance, the financial report by Entain shows that the compound annual growth rate (CARG) of the industry increased by 24%, comparing data between 2020 and 2021. So, these companies put a lot of effort into focusing on the online segment with the purpose of following the needs of their customers.
Legalization of local markets
All the companies agreed that the local market regulations also opened many opportunities to take advantage of them. For example, the government of the Netherlands made gambling legal, and this moment allowed the companies to extend their horizons and become the first operators there. Consequently, this moment allowed them to get even more customers. And the legalization in the region of North America presented the same opportunities to the iGaming companies.
Increased interest in live casino solutions
Evolution Gaming, a leader in creating Live Casino solutions for both land-based and online gambling establishments, noticed the increased interest of the players in experiencing the real environment of gambling. That is why the company highlighted the segment of live casino games as the trigger for a profit.
Shift of direction
Sportradar, in its financial report for 2021, stated that the shift of the company from pre-match betting to in-game betting impacted the financial results that the company achieved in 2021.
The perspective regions
Entain was more specific and stated that betting, casino, bingo, and poker were primary driven forces for the company’s growth. The company indicated that the operation in the UK and EU gambling markets, representing 47% of the online gambling market, helped it set a record in terms of revenue and EBITDA. What is more, the company intends to enter the market of Asia (28% of the online gambling market) and North America with a 15% of share.
What will be the next steps of the companies?
At this moment, you know what steps the leading gambling companies took to reach such a high point. However, it is always curious to know what these companies will do next to better the financial results in the next fiscal years.
In the financial report for 2021, Henrik Tjärnström, CEO of Kindred Group, stated that the company would continue focusing on the scaling of the business, especially on expanding its influence and horizon in the newly opened market of North America. One more aspect that he mentioned is the focus on increased product control and unique content to stand out from the crowd.
Jette Nygaard-Andersen, CEO of Entain, said that the company would continue focusing on the following aspects: customer-centric improvement, player protection (including its approach of Advanced Responsibility and Care), and implementation of new and innovative technologies. In addition to these steps, he mentioned the company’s intention to enter the markets of Asia and North America.
As the financial report of Sportradar for 2021 states, the company is going to deepen its focus on player-specific data while making a strong accent on the implementation of AI.
Martin Carlesund, CEO of Evolution Gaming, also shared his thoughts about the company’s further development. The first and foremost focus of the company goes to live casino solutions. And he commented:
“For 2022, we expect to continue to invest heavily in game innovation, and we plan, as communicated earlier, to release a total of 88 new games across all categories. Our pipeline for 2022 consists of both new takes on player favorites and completely new.”
Flutter Entertainment intends to expand its influence in the sports betting market of Australia and the US while promoting its approach to safe gambling.
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