Month: May 2022

Revenue for the three months to 31 March 2022 was $19m (£15m/€18m), helped by the acquisitions of the Karamba, Hopa, Griffon Casino, BetTarget, Dansk777 and Generation VIP brands in November last year.

Ebet noted that the series of acquisitions included 1.25 million depositing customers, which also helped contribute to the revenue increase.

The provider did not publish full financial results for the quarter, but it did state that gross revenue amounted to approximately $7m, while earnings before interest and tax was $7.1m.

Ebet added that it will target further revenue growth in the third quarter and beyond with a continued focus on the generation Z and millennial markets, which will include the rollout of its esports odds modelling and wagering product across European markets.

“We are very pleased with our business results for the second quarter, and it is a testament to our focus on creating the best experience for the Gen Z and Millennial wagering market,” Ebet chief executive Aaron Speech said. 

“We are delighted to see the strong customer response to our brands and the progress we are making in launching products and investing in proprietary technology.”

The announcement comes after the business last week rebranded as Ebet to better reflect its business and focus on providing technology and wagering services.

The provider said its new Ebet brand would emphasise its focus on delivering services to the millennial and generation Z wagering market, as well as its commitment to esports enthusiasts and sports and casino games fans.

EveryMatrix currently delivers igaming software for casino, sports betting, affiliate management and payment strategies. The company is currently preparing to go live by putting up hosting facilities and getting its products certified.

This follows the company completing the licensing application for both West Virginia and Michigan back in December 2021. It is also already licensed in New Jersey,

Erik Nyman, president of EveryMatrix Americas, said: “EveryMatrix has filed for several licences in states that have regulated casino and sports, and we are pleased to see these efforts are paying off. Alongside licensing, we also have multiple deals with large U.S. operators that will be ready soon.”

The move will allow EveryMatrix ro distribute gaming content from Armadillo Studios and Spearhead Studios through using the company’s casino integration platform, CasinoEngine.

“It will take a lot of time and dedication to become a leading supplier of turnkey services for gaming in the US, but this is another crucial step in that direction.”

This comes as the company makes a shift towards expansion, having invested in gaming studio Jelly Entertainment in March and Swedish-listed LL Lucky Games AB in May 2021.
Earlier this week, the company also announced a partnership with International Game Technology (IGT), where the UK-based brand will offer slots across North America under IGT’s patented portfolio and licensing program.

The charges related to Zeferino manipulating scores inputted into his electronic scoring device at an ITF M15 event in 2020, which facilitated guaranteed wins by bettors on those points.

Zeferino, who was a level two white badge official, admitted to his conduct in an interview with the ITIA and did not contest the charges.

Ruling on the case, independent anti-corruption hearing officer (AHO) Ian Mill QC said that Zeferino should be removed from the sport permanently, meaning he will no longer be able to officiate at tennis events authorised or sanctioned by any international tennis governing body or national association.

The ITIA noted that Zeferino was found to have breached two sections of the Tennis Anti-Corruption Program (TACP).

These included Section D.1.b of the 2020 TACP, which says that no covered person shall, directly or indirectly, facilitate any other person to wager on the outcome or any other aspect of any event or any other tennis competition.

Zeferino was also ruled to have breached Section D.1.d of the 2020 TACP, which states that individuals must not contrive the outcome, or any other aspect, of any tennis event.

The decision comes after the ITIA this week also confirmed that six Spanish tennis players were banned from the sport after they were convicted of criminal charges relating to match-fixing in the Spanish courts.

Marc Fornell Mestres, who had a career-high ATP ranking of 236, and Jorge Marse Vidri, whose highest ATP ranking was 562, were both issued bans, as were unranked players Carlos Ortega, Jaime Ortega, Marcos Torralbo and Pedro Bernabe Franco.

All six players pleaded guilty to corruption charges and were convicted in Spain as part of a wider case involving organised crime, which remains ongoing.

Under the agreement, Kindred will continue its support of WIR’s ‘Racing Home’ programme, which aims to educate and empower stakeholders in the racing industry about motherhood and parenthood.

Kindred, through both its Unibet and 32Red brands, will participate in the programme, supporting working parents in the racing industry with matters related to pregnancy, maternity, paternity, adoption, shared parental leave, flexible working, self-employment and statutory pay.

This next phase of the Racing Home programme includes the launch of a new educational online portal, expert guidance to mothers returning to riding post pregnancy, and a new series of podcasts hosted by equine vet and podcast producer Naomi Mellor.

“The aims of the ‘Racing Home’ platform is closely aligned to Kindred’s sustainability strategy and our ambition to achieve a 50:50 gender split in senior management,” Kindred chief executive Henrik Tjärnström said.

“It is important for us to offer our employees a positive working/family-balance, with a supportive workplace as we truly believe that is how our employees perform their best. We are proud to partner with Women in Racing on the ‘Racing Home’ initiative to support working parents in the industry further

WIR chair Tallulah Lewis added: “Women in Racing are incredibly proud to be working with Kindred Group and to launch our initiatives of the Racing Home project. The work we have been undertaking has identified some serious challenges faced by mothers and parents working in the horseracing industry. 

“Two years of research and webinars have led to Women in Racing in tandem with Simply Racing and the industry stakeholders developing meaningful solutions that will positively impact the working lives of many. We are convinced that these initiatives will bring significant positive change to many people’s lives.”

Revenue fell year-on-year by 11.5%, from $96.7m in Q1 2021. DoubleDown attributed this to stay-at-home orders – which were enforced due to the Covid-19 pandemic – being lifted throughout Q1 2022.

Operating expenses totaled at $60.8m, falling by 14.3% year-on-year. This was linked to the decrease in revenue. Revenue costs made up most of the expenses, at $28.8m, a decrease of 14.7%.

Sales and marketing costs made up $19.7m, remaining steady from Q1 2021, while general and administrative expenses rose by 22.4% to $5.2m.

Research and development costs fell to $4.6m from $5.6m, while depreciation and amortisation costs decreased significantly by 70.4% to $2.2m.

After considering this, the operating income for the quarter totaled at $24.6m, down by 3.6%.

Interest income and gain on foreign currency transactions and remeasurement added $2m to income. However, this was offset by a $1.7m loss in short-term investments, $470,000 in interest expenses and $35,000 in other costs.

The pre-tax income amounted to $24.5, down by 6%. After income tax expenses of $6m, the total net income for the quarter was $18.4m, a fall of 19.4%.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) came to $29.6m.

The statement came after Wynn reported revenue of $953.3m (£772.5m/€903.7m) for the first quarter, a rise of 29.4% year-on-year.

Wynn Interactive generated $727m in turnover.

The future of this interactive division had been in doubt as in November 2021 Wynn and Austerlitz Acquisition Corporation I cancelled a deal that would have seen Wynn Interactive spin off and merge with Austerlitz. The joint business then would have listed on the NASDAQ stock exchange.

The business said that this was due to the fact that it no longer planned to go ahead with the spend-heavy strategy to promote the online product that it had initially planned.

Earlier this year, it was rumoured that Wynn was planning a cut-price sale of its Interactive division for an estimated $500m.

When asked about the company’s online aims and the Wynn Interactive division, Billings explained that Wynn was committing to the igaming sector and expressed hope in the future industry.

“We’ve been pleased with the business over the course of the quarter,” said Billings. “We really do believe in the industry longer term.”

He noted that while spend had decreased for the interactive division, revenue had still increased, suggesting a less “irrational” market than in 2021.

Billings went on to add that sports betting comprises a large part of this belief in igaming, with the Massachusetts state Senate’s recent passage of a sports betting bill playing a part in this.

“Sports is where the majority of the addressable market is today,” continued Billings. “We’ve always viewed Massachusetts as an important boot-strapping event for Wynn Bet.”

“So with a bill in reconciliation between the House and the Senate in Massachusetts now, we’re preparing to be there day one, and that will be an important event for the business.”

Massachusetts is one of “two primary catalysts” for Wynn’s online gaming division, Billings added, the other being additional igaming states “where we feel like we have a distinct advantage based on brand.”

“I think the focus for us is recognizing the ultimate potential total addressable market, our position in that market and reaching that total addressable market in a prudent way that is ultimately shareholder friendly.”

Billings also spoke on Wynn’s integrated resort development in the United Arab Emirates, which is happening in partnership with property developer Marjan and RAK Hospitality.

“I grow more excited about the opportunity with each iteration of that design,” he said. “The island which is really a blank canvas for us presents amazing opportunities to do what we do best.”

When asked about potential competition in the market, Billings said he couldn’t speculate on whether other emirates may choose to also permit an integrated resort, but added that Wynn did not need to be a sole operator to have success.

“We not only compete but actually punch well above our weight in the most competitive market in the world, Las Vegas,” he said.

Yesterday Wynn and Marjan selected HKS Architects as the design consultant for the multi-billion dollar property.

Inspired’s gaming division remained the largest source of revenue in Q1, as takings from this area tripled year-on-year to £23.2m.

Leisure, meanwhile, experienced the fastest growth. After Covid-19-related restrictions meant leisure revenue was only £500,000 in Q1 of 2021, it came to £19.6m in Q1 of 2022.

“Our gaming and leisure results were particularly strong, demonstrating the full recovery of our land-based customers, as gaming recurring revenues returned to pre-COVID-19 levels and Leisure benefited from an extended holiday season,” Inspired executive chairman Lorne Weil said.

Despite not being affected by Covid-19 in Q1 of 2021, virtual sports also experienced a fast rise in revenue, by 84.0% to £11.6m. 

“Our virtual sports experienced a record quarter with an impressive 54% year-over-year increase in online virtuals on difficult comparatives.”

Inspired’s interactive, division, on the other hand, experienced much slower growth, with revenue ticking up from £5.2m to £5.3m.

The business also made £900,000 in VAT rebate payments, down from £3.1m in 2021, after a court ruling about how the tax is applied to B2 gaming machines.

Almost all of Inspired’s £60.6m in revenue came from services, which brought in £57.0m, while £3.6m came from product sales.

The business then paid £11.8m in costs of services, up 461.9%, while costs of product sales were down 34.5% to £2.1m.

Selling, general and administrative expenses almost doubled to £29.6m, but acquisition costs dropped from £1.4m to only £100,000 and depreciation costs were down 22.9% to £10.9m.

As a result, Inspired reported £6.5m in operating income.

The business paid £6.5m in interest expenses, which was 24.4% less than in Q1 of 2021.

In addition, it made £900,000 from disposal of a subsidiary, and £300,000 in other finance income.

As a result, its pre-tax income was £1.6m, compared to a £17.4m loss the year before. After paying £100,000 in tax, Inspired’s net profit was £1.5m, compared to a £16.7m loss the year before.

After accounting for £2.4m in foreign currency gains, an area where the business made a loss in 2021, plus £200,000 in the reclassification of losses from hedging instruments and £700,000 from actuarial gains on its pension plans, Inspired made a comprehensive loss of £4.8m in Q1. This compared to a £12.1m loss the year before.

“We have had a strong start to the year, generating year-over-year revenue growth across our business units, while also laying the groundwork for the long-term growth and profitability of our business,” Weil said.

Looking ahead, Weil said that North America represented a great opportunity for Inspired, with virtual spots already posting impressive results in Ontario since that market opened on 4 April.

“The North American online market remains a tremendous opportunity for Inspired, and we expect to continue to progress on the same growth trajectory with the continued addition of new customers and markets in the second half of the year,” Weil said.

Gross profit – which is defined as gross revenue minus direct costs paid to game suppliers – grew by 14% to €13.9m.

“Gross profit was driven by substantial growth around the world and the stabilisation of German revenues after the regulatory changes there,” the supplier said.

Earnings before interest, tax, depreciation and amortisation (EBITDA), however, declined by 14% to €4.8m. This, it said, was due mostly to EBITDA being particularly high in Q1 of 2021, with €4.8m being on par with the 2021 average, as well as the fact that the business increased its headcount from 553 at the end of Q1 2021 to 669 at the same time in 2022.

Groes said the business would continue to invest in order to grow further in North America, and would pursue possible acquisitions.

“We have started the year with a strong financial performance across all three business segments, driven by our well-balanced and innovative product offering and broad client base,” he said. “We saw a record number of new client wins in the quarter with 40 deals signed across all products.

“We continue to invest organically for our next level of growth, mainly in our game studios and the North American markets. On top of the organic investments, we are also looking at M&A opportunities.”

This revenue figure was slightly ahead of the upper range of the payment provider’s guidance range for the quarter of £355m to $365m. However, it was down by 2.6% year-on-year.

“Paysafe is off to a good start this year, posting first quarter results ahead of our expectations,” Paysafe chief financial officer Izzy Dawood said.

Paysafe’s US acquiring segment experienced growth of 10.3% to $169.1m.

However, revenue from its digital commerce segment fell by 11.4% to $198.5m. Breaking this digital commerce revenue down further, most of the total came from eCash, but this segment was down 10.5% to $101.1m. Revenue from digital wallets was down 13.4% to $82.2m, while integrated & ecommerce solutions dipped by 1.5% to $23.1m. An additional $8.0m in revenue was eliminated due to being from intra-company sales.

The provider noted that a major reason for the decline in revenue was foreign exchange changes, and that without this revenue would have been flat.

“We are particularly pleased with the strong performance from our US Acquiring business, which delivered double-digit volume, revenue and adjusted EBITDA growth,” Dawood added. “We are winning across digital commerce and the turnaround of the digital wallet business continues to show progress. Additionally, Paysafe is succeeding in North America igaming, recently launching in Ontario’s new private market.

“Despite macro headwinds, we remain confident in our full year outlook supported by continued momentum in US Acquiring and our pipeline across digital commerce.”

Costs of services came to $147.1m, down 2.6%, while selling and administrative expenses dropped by 32.7% to $130.6m and depreciation and amortisation costs were down by 3.1% to $63.4m.

However, these declining costs were dwarfed by a $1.20bn impairment expense, “due to a sustained decline in Paysafe’s stock price and market capitalization”.  The business’ share price had experienced a sustained decline since a January 2021 peak of $19.24 per share, including a drop of more than 40% after announcing an underperformance in Q3.

“The non-cash impairment charge will not have any impact on the company’s compliance with its debt covenants, cash flows or liquidity,” the business said.

Paysafe also paid $12.6m in restructuring and other costs, up 320.0%.

This meant Paysafe was left with an operating loss of $1.19bn, compared to a $36.6m loss the year prior. 

After $3.5m in other income and $26.0m in interest expenses, the payment provider was left with a pre-tax profit of $1.21bn, close to 20 times the loss recorded in Q1 of 2021.

The business received a $43.1m income tax benefit, for a net loss of $1.17bn.

In terms of adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) – which did not include the goodwill impairment – Paysafe made $104.0m, down by 8.0% year-on-year. Again, this was ahead of the upper end of Paysafe’s target range, which was between $95m and $100m.

After the quarter ended, Paysafe announced that it had appointed Bruce Lowthers as its new chief executive, taking over from 1 May. Lowthers succeeds Philip McHugh, who is stepping down as CEO and as a member of Paysafe’s board of directors. 

“I am thrilled to be joining the talented Paysafe team at such a pivotal time,” he said. “Paysafe has a long track record of being a pioneer in payments and with a lot of potential to grow in verticals with strong tailwinds. 

“I look forward to working with the team to seize the opportunities ahead, drive more innovation in the fintech ecosystem and ultimately generate greater shareholder value.”

This was a rise of 36.3% from the first quarter of 2021.

Almost half of this – €9.5m – came from the Netherlands alone. As the Dutch online gambling market opened in October 2021, there is no comparative data for the first quarter of 2021.

Revenue from Curaçao totaled at €3.6m, up by 32%, while revenue in Malta fell considerably from €9.4m in Q1 2021 to €3.1m.

For the rest of Europe, revenue was €2.1m, a rise of 15.1%. Revenue from the rest of the world was €775,000, up by €703,000 after only a minimal total in this area a year earlier.

Bragg received two international licences in the first quarter. In March the supplier became licensed to do business in Ontario and the Bahamas.

“We expect to grow our presence in Ontario over the next several months through aggreements with additional large, well-known operators.” said Yaniv Spielberg, chief strategy officer for Bragg Gaming.

The total cost of revenue increased by 23.7% to €9.3m. This meant gross profit reached a record-breaking €10m, a rise of 50.6% year-on-year.

Selling, general and administrative expenses grew to €10.2m, up by 43.7%.

This, along with a gain on remeasurement of warrant liabilities at €37,000, left the operating loss at €228,000, a decline of 54.3% from the loss recorded in Q1 of 2021.

After net interest expenses of €67,000, the pre-tax loss was €295,000. However this was still 48% less than in Q1 2021.

Income taxes at €425,000 brought the final net loss to €720,000, more than €350,000 less year-on-year.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) also broke previous records, at €3m, up from €2.3m.

“Our momentum continued in the first quarter as the successful execution of our growth initiatives focused on offering more higher-margin proprietary and third-party exclusive games and our igaming player account management, combined with ongoing expansion into new regulated igaming markets, drove strong growth in our operating results,” said Spielberg.